Mastering the basics of financial accounting is essential for anyone looking to understand how businesses record and report their financial activities. This course begins with an introduction to the core concepts of accounting, focusing on the definitions and classifications of assets and liabilities. Understanding these elements is crucial as they form the foundation of all financial statements and business analysis.

You will then explore the accounting equation — the fundamental formula that links assets, liabilities, and equity — and learn how this equation maintains the balance in a company’s financial records. The course covers important accounts such as accounts payable and accounts receivable, helping students comprehend how day-to-day transactions affect a business’s financial position.

Additionally, the course introduces double-entry bookkeeping, a key method used to ensure accuracy in accounting records, and explains the difference between capital expenditure and revenue expenditure. By combining theory with practical examples, this course equips learners with the skills needed to analyze financial transactions accurately and understand their implications on a company’s finances, forming a solid base for further study or professional practice in accounting.