Financial Accounting
Revision for Financial Accounting: notes on 12 units, 312 practice questions with explanations, 106 flashcards and 96 common traps, plus timed mock papers marked like the real quiz (+1 correct · −0.25 wrong · 0 blank). Free, and it remembers what you get wrong.
What's covered
What accounting is
The definition and the four steps · The three branches · Profit is not cash — and why that matters · Textbook: The Nature and Purpose of Accounting
Objectives, users & the regulatory environment
The five objectives of accounting · Internal and external users · The regulators — India and global · Textbook: The Nature and Purpose of Accounting
The eight accounting concepts
Concepts 1–5 · Concepts 6–8, and the two realisation exceptions · Assets, liabilities and equity — the definitions · Textbook: The Nature and Purpose of Accounting · Textbook: Basic Accounting Concepts: The Balance Sheet · Textbook: Basic Accounting Concepts: The Income Statement
The four accounting conventions
The four conventions · Textbook: Basic Accounting Concepts: The Income Statement
The accounting equation
The accounting equation · Textbook: The Nature and Purpose of Accounting · Textbook: Basic Accounting Concepts: The Balance Sheet
Account types & the debit/credit rules
The two rule systems · Source documents and transaction types · Textbook: Accounting Records and Systems
Journal & ledger
The journal · The ledger, opening entries and balancing · Textbook: Accounting Records and Systems
Trial balance & errors
Trial balance — purpose and the two methods · The suspense account and the four errors · Live Lecture 4 — trial balance drill and exam format · Textbook: Accounting Records and Systems
Balance sheet: recognition & classification
The balance sheet — features and formats · Assets and liabilities — types and worked balance sheets · Live Lecture 5 — Vogue Company's final statements · Textbook: Basic Accounting Concepts: The Balance Sheet
Income statement & accrual accounting
Cash basis vs accrual basis · The matching principle — when and what to match · Traditional vs replacement-cost profit · Final accounts and the trading account · Direct expenses and the trading account format · Trading account problems: closing stock and returns · The profit and loss account — from gross to net profit · Profit and loss problems and closing entries · Retained earnings and how the statements link · Live Lecture 5 — sorting accounts into the final statements · Textbook: Basic Accounting Concepts: The Income Statement
Adjusting & closing entries, the accounting cycle
Adjusting entries — why, and the four types · Deferrals: prepaid expenses and unearned revenue · Accruals and the adjusted trial balance · Live Lecture 4 — deferrals vs accruals and the Vogue adjustments · Textbook: Accounting Records and Systems
Cash flow statement
Why a cash flow statement, and what counts as cash · Operating, investing and financing activities · Why net income and operating cash differ
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