Financial accounting is a branch of accounting that is primarily concerned with recording the financial transaction with a view to ascertain the result of operation condition. Our accounting instructors have developed a series of brief, engaging video lessons and self-assessment quizzes to boost your knowledge of ethics in accounting, nominal accounts and depreciation, among other topics. Learn about the purpose of accounting, generally accepted accounting principles, ethical accounting and technology in accounting. Find out how to prepare different financial statements and about the auditing process. Analyse, interpret and evaluate financial data and accounting information for economic decision making.
Also learn about debits, credits, journal entries, the trial balance and determining a company’s performance based on financial statement ratios. Examine periodic reporting, the time period principle, accrual accounting, cash-basis accounting, adjusting accounting and recording closing entries. Thus, for the purpose of accounting, establishing an accounting entity is important.
Take a look at long-term operating assets, plant assets, the cost principle, acquisition of property, computing depreciation, natural resource assets and accounting for intangible assets. Find out about the purpose and elements of financial statement analysis, standards for comparison, horizontal analysis, vertical analysis and financial ratio analysis.
In addition, study financial ratios for companies, efficiency ratios, leverage ratios and issues with financial statement analysis. For many years, the Financial Accounting Standards Board (FASB), which sets accounting standards (Generally Accepted Accounting Principles (GAAP)) that businesses are obligated to follow, has received numerous complaints regarding the growing complexity and cost associated with financial reporting. This ongoing effort has resulted in a gradual streamlining of accounting standards for smaller, private companies. This introduction lays the foundation for later courses in financial accounting.
To date, the PCC and FASB have issued four accounting alternatives for private companies, all of which can apply to private construction companies. Each of these alternatives, included in Accounting Standard Updates (ASU), provides an expedited approach to certain technical topics that have historically driven up the cost of financial reporting and compliance for private companies. These alternatives are optional for private companies and must be disclosed in the financial statements.