Free Accounting and Finance Course
This page contains our free online accounting course. It will teach you the basics of accounting and finance.
The Course Covers:
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The basics of accounting
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The basics of finance
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Fundamentals of financial statements
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Definitions of financial terminology
Course Modules:
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Lesson 2: Accounting and Financial Terminology
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Lesson 3: Understanding Financial Statements
To start the online course, scroll down
This course is FREE, and no registration is required. It is perfect for beginners!
Our Online Course in Accounting
Part 1: An Introduction to Accounting and Finance
Module overview:
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Course Overview
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Who should take this course
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What to expect
Who should learn accounting?
Understanding the basics of accounting is an essential skill everyone should have, as everyone faces some form of accounting regularly.
The course is for anyone who wants to learn accounting, but more specifically, business owners, company directors, entrepreneurs, accounting students, business students, bookkeepers, and anyone with a general interest in accounting.
What is covered in the course?
The course will include:
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Basic financial terms
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Basic accounting principles
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Financial statement basics
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Various accounting and finance insights
Part 2: Accounting and Financial Terminology
Module overview:
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Sales
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Expenses
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Assets
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Liabilities
What are sales?
A sale is the agreed cash exchange for providing a good or service.
Some sales result in an immediate exchange of cash, such as customers buying at the checkout of a shop. These are cash sales. Other sales result in money being exchanged later, even though the goods or services were provided. These are credit sales, including an invoice detailing the sale and payment terms.
Sales are also referred to as revenue, income, and turnover.
What are expenses?
An expense is a cost incurred by a business, company or other entity.
Typical expenses include rent, fuel, vehicle, stationery, printing, postage, insurance, software, computer, property maintenance, wages, salaries, subscriptions, training and travel costs.
Like sales, expenses are incurred in cash or credit. These are referred to as cash purchases and credit purchases.
Expenses are also referred to as overheads, outgoings, and purchases.
What are assets?
An asset is something a business, company, or other entity owns and has monetary value.
Examples of assets:
Office furniture
Motor vehicles
Machinery
Tools
Property
Assets can be tangible (physical), like an office desk. Assets, like copyrights and patents, are intangible (non-physical).
The main difference between assets and expenses is the resale value. Expenses, such as rent, insurance, and salaries, often have little or no value and cannot be resold. Assets have monetary value and could be sold if needed.
Cash and debts owed to a business are also assets.
What are liabilities?
Liabilities are the opposite of assets - something that the business owes.
Examples of liabilities:
Bank loans
Credit cards
Finance and lease agreements
Taxes
Money owed to suppliers
Part 3: Financial Statements for Beginners
Module overview:
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Financial statements explained
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The profit and loss statement
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The balance sheet
Financial Statement Basics
Two of the most common financial statements are the profit and loss statement and the balance sheet.
These statements use the sales, expenses, assets, liabilities and equity to show a company's financial health and performance.
The Profit and Loss Statement
This financial statement shows total sales vs total expenses for a selected period. It details the total profit or loss an entity has made.
The profit and loss statement is also called the income statement.
The Balance Sheet
This financial statement shows everything an entity owns and owes at a selected date.
The balance sheet is also called the statement of financial position.
See our other free bookkeeping and accounting courses
Recommended Course: Financial Analysis Course
Recommended Course: Bookkeeping Course
*Recommended Book: The Accounting Game*
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