Financial Accounting

Complete syllabus

Every chapter and lesson

1. 01

   Chapter 1 · 3 lessons

   Foundations of Accounting

   1. 1.1

      The role of accounting

      8 min · Quick check

      Lesson goal: By the end you can explain the role of accounting in business and society.

      • Define accounting and its purpose.
      • Identify the primary users of accounting information.
      • Discuss the importance of accounting in decision-making.
   2. 1.2

      The accounting equation

      9 min · Quick check

      Lesson goal: By the end you can understand and apply the accounting equation.

      • Define the accounting equation: Assets = Liabilities + Equity.
      • Explain the components of the accounting equation.
      • Illustrate how transactions affect the accounting equation.
   3. 1.3

      The financial statements

      8 min · Quick check

      Lesson goal: By the end you can identify and describe the main financial statements.

      • Define the four main financial statements: Income Statement, Balance Sheet, Statement of Cash Flows, and Statement of Changes in Equity.
      • Explain the purpose of each financial statement.
      • Discuss how financial statements are interconnected.
2. 02

   Chapter 2 · 3 lessons

   Recording Transactions

   1. 2.1

      Debits & credits

      9 min · Quick check

      Lesson goal: By the end you can explain the concepts of debits and credits in financial accounting.

      • Define debits and credits and their roles in accounting.
      • Explain the accounting equation and how debits and credits affect it.
      • Identify which accounts are increased or decreased by debits and credits.
   2. 2.2

      The journal & ledger

      8 min · Quick check

      Lesson goal: By the end you can describe the purpose and structure of the journal and ledger in recording transactions.

      • Define the journal and ledger and their functions in accounting.
      • Explain the process of recording transactions in the journal.
      • Describe how transactions are posted from the journal to the ledger.
   3. 2.3

      The trial balance

      8 min · Quick check

      Lesson goal: By the end you can prepare and analyze a trial balance to ensure the accuracy of recorded transactions.

      • Define the trial balance and its purpose in accounting.
      • Explain how to prepare a trial balance from the ledger accounts.
      • Identify discrepancies in the trial balance and their implications.
3. 03

   Chapter 3 · 3 lessons

   The Accounting Cycle

   1. 3.1

      Adjusting entries

      9 min · Quick check

      Lesson goal: By the end you can explain the purpose and types of adjusting entries in the accounting cycle.

      • Define adjusting entries and their role in the accounting cycle.
      • Identify the different types of adjusting entries: accruals and deferrals.
      • Explain the impact of adjusting entries on financial statements.
   2. 3.2

      Closing entries

      8 min · Quick check

      Lesson goal: By the end you can describe the process and importance of closing entries in financial accounting.

      • Define closing entries and their purpose in the accounting cycle.
      • List the accounts that are typically closed at the end of an accounting period.
      • Explain how closing entries affect retained earnings and the income statement.
   3. 3.3

      Preparing statements

      8 min · Quick check

      Lesson goal: By the end you can prepare basic financial statements from adjusted trial balances.

      • Define the key financial statements: income statement, balance sheet, and statement of cash flows.
      • Explain the relationship between the adjusted trial balance and the financial statements.
      • Demonstrate the steps to prepare each financial statement.
4. 04

   Chapter 4 · 3 lessons

   Assets

   1. 4.1

      Cash & receivables

      8 min · Quick check

      Lesson goal: By the end you can define cash and receivables and explain their significance in financial accounting.

      • Define cash and its role in business operations.
      • Explain the concept of receivables and their importance for cash flow.
      • Discuss the different types of receivables, including accounts receivable and notes receivable.
   2. 4.2

      Inventory

      9 min · Quick check

      Lesson goal: By the end you can define inventory and describe its valuation methods.

      • Define inventory and its role in the balance sheet.
      • Explain the different inventory valuation methods, including First-In, First-Out (FIFO) and Last-In, First-Out (LIFO).
      • Discuss the impact of inventory valuation on financial statements.
   3. 4.3

      Long-lived assets

      8 min · Quick check

      Lesson goal: By the end you can define long-lived assets and explain their depreciation.

      • Define long-lived assets and categorize them into tangible and intangible assets.
      • Explain the concept of depreciation and its significance in accounting.
      • Discuss different methods of depreciation, including straight-line and declining balance methods.
5. 05

   Chapter 5 · 3 lessons

   Liabilities & Equity

   1. 5.1

      Current liabilities

      8 min · Quick check

      Lesson goal: By the end you can define current liabilities and identify their components.

      • Define current liabilities as obligations due within one year.
      • Identify examples of current liabilities such as accounts payable and short-term loans.
      • Explain the importance of current liabilities in assessing a company's liquidity.
   2. 5.2

      Long-term liabilities

      9 min · Quick check

      Lesson goal: By the end you can define long-term liabilities and distinguish them from current liabilities.

      • Define long-term liabilities as obligations due beyond one year.
      • Identify examples of long-term liabilities such as bonds payable and long-term loans.
      • Discuss the implications of long-term liabilities on a company's financial health.
   3. 5.3

      Stockholders’ equity

      8 min · Quick check

      Lesson goal: By the end you can define stockholders’ equity and explain its components.

      • Define stockholders’ equity as the residual interest in the assets of a company after deducting liabilities.
      • Identify components of stockholders’ equity such as common stock, preferred stock, and retained earnings.
      • Explain the significance of stockholders’ equity in evaluating a company's financial position.
6. 06

   Chapter 6 · 3 lessons

   Analysis

   1. 6.1

      The statement of cash flows

      9 min · Quick check

      Lesson goal: By the end you can explain the components and purpose of the statement of cash flows.

      • Define the statement of cash flows and its importance in financial reporting.
      • Identify the three main sections: operating activities, investing activities, and financing activities.
      • Explain how cash flows are derived from the income statement and balance sheet.
   2. 6.2

      Financial statement analysis

      8 min · Quick check

      Lesson goal: By the end you can analyze financial statements to assess a company's performance.

      • Define financial statement analysis and its significance for stakeholders.
      • Identify key financial statements: income statement, balance sheet, and statement of cash flows.
      • Explain common techniques used in financial statement analysis, such as horizontal and vertical analysis.
   3. 6.3

      Ratios & interpretation

      8 min · Quick check

      Lesson goal: By the end you can calculate and interpret key financial ratios.

      • Define financial ratios and their role in evaluating a company's financial health.
      • Identify key categories of ratios: liquidity, profitability, and solvency.
      • Explain how to calculate and interpret common ratios, such as current ratio, return on equity, and debt-to-equity ratio.