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Financial Accounting

Free Financial Accounting study guide: 10 units with summaries, key ideas, flashcards and 300 practice questions with step-by-step solutions.

Lines up with: College intro financial accounting; CLEP Financial Accounting.

Units

1. UNIT 01

   The Accounting Equation and Transactions

   Financial accounting reports a company's resources and the claims on them to outside users. The accounting equation, Assets = Liabilities + Equity, is the logic behind every transaction you will record in this course.
2. UNIT 02

   Debits, Credits, Journals and the Ledger

   Double-entry bookkeeping records every transaction with equal debits and credits. This unit covers the rules for each account type and how entries move from the journal to the ledger to the trial balance.
3. UNIT 03

   Adjusting Entries and Accrual Accounting

   Adjusting entries make accrual-basis accounting work by putting each revenue and expense in the period it belongs to. They are among the most tested topics in any intro accounting course.
4. UNIT 04

   Closing the Books and the Financial Statements

   This unit finishes the accounting cycle: preparing the four financial statements, classifying the balance sheet, and closing temporary accounts so the next period starts fresh.
5. UNIT 05

   Cash and Internal Control

   Cash is the asset most likely to be stolen, so companies protect it with internal controls and check it every month with a bank reconciliation. This unit covers control principles, petty cash and reconciliations.
6. UNIT 06

   Receivables and Bad Debts

   Most companies sell on credit, so some customers will never pay. This unit covers how to record receivables, estimate bad debts with the allowance method, handle notes receivable and judge how quickly a company collects.
7. UNIT 07

   Inventory and Cost of Goods Sold (FIFO, LIFO, Average)

   Merchandisers earn profit by selling inventory for more than it cost. This unit covers recording purchases and sales, the multi-step income statement, the FIFO, LIFO and average cost methods, inventory errors and inventory ratios.
8. UNIT 08

   Long-Term Assets and Depreciation

   Long-term operating assets such as equipment, buildings, natural resources and intangibles provide benefits for many years. This unit covers measuring their cost, depreciating or amortizing it, and recording disposals and impairments.
9. UNIT 09

   Liabilities, Bonds and Stockholders' Equity

   Companies finance their assets with debt and with owners' money. This unit covers current liabilities and payroll, contingencies, bonds and their amortization, and the parts of stockholders' equity including stock issues, treasury stock and dividends.
10. UNIT 10

    Cash Flow Statement and Ratio Analysis

    The statement of cash flows explains where a company's cash came from and where it went, and ratio analysis turns all four statements into measures of liquidity, solvency and profitability. This unit ties the whole course together.