Description

1. Introduction to Accountancy

• Definition of Accountancy: What is accountancy? The role of accountants in business and finance.

• Types of Accounting:

  • Financial Accounting

  • Managerial Accounting

  • Cost Accounting

  • Tax Accounting

2. Basic Accounting Concepts

• The Accounting Equation:
  $\text{Assets}=\text{Liabilities}+\text{Equity}$

• Accrual vs. Cash Basis Accounting: Explanation of both and their use.

• Double-Entry System: Every transaction affects at least two accounts.

• The Matching Principle: Revenue and expenses must be recorded in the period they are earned or incurred.

3. Basic Financial Statements

• The Balance Sheet: What it is and how to read it.

  • Assets (Current and Non-Current)

  • Liabilities (Current and Non-Current)

  • Equity

• The Income Statement (Profit and Loss):

  • Revenue, Expenses, and Net Profit.

• The Cash Flow Statement:

  • Operating, Investing, and Financing activities.

4. The Role of Journal Entries

• Understanding Journal Entries: How transactions are recorded.

• The Journal: Introduction to debits and credits.

• Common Types of Journal Entries:

  • Sales, Purchases, Expenses, and Adjustments.

• Examples: Simple journal entries to illustrate the process.

5. General Ledger and T-Accounts

• What is a Ledger?: A detailed record of all transactions.

• T-Accounts: How to use T-accounts for tracking debits and credits.

• Posting from the Journal to the Ledger: Process and importance.

6. Trial Balance

• What is a Trial Balance?: Purpose and preparation.

• Balancing the Accounts: Verifying that the debits and credits match.

• Common Errors: Understanding why the trial balance might not balance.

7. Depreciation and Amortization

• What is Depreciation?: How to account for depreciation of assets.

• Methods of Depreciation:

  • Straight-Line

  • Reducing Balance

  • Units of Production

• Amortization: Application to intangible assets.

8. Key Financial Ratios

• Liquidity Ratios: Current Ratio, Quick Ratio.

• Profitability Ratios: Gross Profit Margin, Net Profit Margin.

• Efficiency Ratios: Return on Assets, Asset Turnover.

• Leverage Ratios: Debt to Equity, Debt Ratio.

9. Basic Bookkeeping Terms and Definitions

• Accounts Receivable vs. Accounts Payable

• Capital vs. Revenue

• Inventory: How it is recorded and valued.

• Equity and Liabilities: Their importance in business financing.

10. Conclusion & Practical Applications

• Real-life Examples: How accounting principles are applied in small businesses, corporations, or startups.

• Tools for Accountants: Accounting software (e.g., QuickBooks, Xero) and its usage.

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