The Language of Accounting and Finance

Overview/Description
 This course familiarizes learners with the fundamentals of accounting methods and terminology, and demonstrates the benefits of using standard accounting methods to record financial transactions. Through a series of practical exercises, learners gain preliminary experience using the basic financial record-keeping instruments, including ledgers, income statements, and balance sheets. This course prepares learners to proceed to the next levels of financial literacy: interpreting financial data and preparing budgets.

Target Audience
 This course targets managers or other professionals with limited exposure to or understanding of financial systems. These people often have budgetary responsibilities, and will perform those responsibilities with a clearer understanding of the principles of basic accounting.

Expected Duration
3 hours

Lesson Objectives:

Basic Accounting Concepts

  • recognize the value of using standard accounting terminology to communicate information about a business's financial status.
  • apply the basic accounting equation to sample business scenarios.
  • distinguish between examples of asset, liability and equity accounts.
  • identify the types of accounts that are found in the chart of accounts.

    • Analyzing and Recording Transactions

  • recognize the value of following standard accounting recording procedures as a way to improve financial management.
  • use double-entry bookkeeping to post a business transaction to the appropriate accounts affected by it.
  • describe the purpose of a General Journal.
  • identify the relationship between posting transactions to a ledger and posting to the general journal.

    • Preparing Financial Statements

  • recognize the value of income statements and balance sheets as they define the financial performance and financial condition of a business.
  • use the trial balance worksheet as an evaluative tool in the financial record-keeping process.
  • identify the common characteristics of the income statement.
  • identify the common components of the balance sheet.
  • identify the processes of recording transactions in the accounting cycle.

    • Course Number: FIN0101