Accounting for Non-Accountants

Introducing accounting and financial statements

• Definition of accounting

• Users of accounting information

• Basic financial statements

• The corporation defined

• Presentation of accounting information by different business entities

International financial reporting standards

• The International Accounting Standards Board (IASB)

• Introduction to IFRS

• Main differences between IFRS and US Generally Accepted Accounting Principles (GAAP)

Double-entry accounting

• The accounting equation

• Traditional double-entry bookkeeping

• Your asset is his liability

• The chart of accounts

• The general journal

• The general ledger

• The trial balance

• Modern bookkeeping: automating transactions

Income statements

• Defining the income statement

• Defining revenue and its recognition

• Defining expenditures and their classifications

• Calculating profit

• Gross profit

• Operating profit

• Net profit

• The income statement illustrated

Net equity

• Defining capital stock

• Dividends are not an expense

• Cash dividends, stock dividends and stock split

• Definition of treasury stock

• Retained earnings - not the same as cash

The balance sheet and its components

• Defining the balance sheet

• Assets

• Liabilities

• Equity

• Current versus non-current assets and liabilities

• The balance sheet illustrated

Cash flow statement

• Defining the statement of cash flows

• Cash and cash equivalents

• Classification of cash flows

  • Operating activities

  • Investing activities

  • Financing activities

• The cash flow statement illustrated

Adjustments to financial statements

• The accrual concepts

• Accruals and prepayments

• Depreciation

• Bad debts

• Provisions for contingencies