Course description
This course is accredited by the Chartered Institute of Management Accountants (CIMA). We believe that the best way to learn is through genuine understanding and experience, which is why we present a set of ground-breaking visualization models that explain accounting transactions and balances using the analogy of water pipes and tanks. These help you to develop an intuitive understanding of how accounting works as a simple, connected system.
The models used in this course are used by leading universities to help their students understand financial concepts. This course assumes no prior knowledge and gradually introduces all the building blocks of accounting such as revenue, costs, assets, liabilities and equity through a series of ground-breaking business simulations and case studies.
We show you how the ‘accrual’ principle creates a fundamental difference between profit and cashflow and how double-entry bookkeeping keeps ledgers balanced. Such lessons help you to get comfortable with financial statements and terminology. Whether you are completely new to finance or simply want an engaging refresher, this course provides an intuitive understanding of accounting. Sign up to take control of your personal or business finances.
Upcoming start dates
Training content
The Accrual Principle
Description: In this module you will start at the very beginning and learn how the accrual principle creates a fundamental difference between revenue and cash receipts. The accrual principle is the reason that accounting requires estimation and judgement rather than just the process of recording transactions.
- Course Introduction
- The Accrual Principle
- The Accrual Principle - Pros and Cons
- The Accrual Principle - Summary
- Assessment: Quiz - The Accrual Principle
Revenue and Cash
Description: In this module you will learn the concepts of accounting transactions and balances. You will use the first interactive model to explore the relationship between revenue, the receivables balance and cashflow.
- Revenue and Cash
- The Receivables Balance
- The Accrual Principle - Summary
- Assessment: Quiz - Revenue and Cash
Assets and Liabilities
Description: In this module you will use another interactive model to explore how the timing difference between incurring costs and paying for them creates a payables balance. You will learn that assets and liabilities are different types of accounting balances and understand how they are created.
- Assets & Liabilities
- About Cashflow
- Cashflow Summary
- Assessment: Quiz - Assets and Liabilities
About Equity
Description: In this module you will use another interactive model to explore what the profit and loss account is. You will learn about the concept of equity. You will understand why the balance sheet always balances due to double-entry bookkeeping.
- The Profit and Loss Account
- About Equity
- The Fundamental Accounting Equation
- Debits and Credits
- Equity Summary
- Assessment: Quiz - Equity
Financial Statements
Description: This topic introduces the format of the 3 main financial statements: the profit and loss statement, balance sheet and cashflow statement. Explained is what information is in each statement and how they are connected. You will learn techniques such as simple trend and profitability analysis in order to interpret the financial information.
- The Profit and Loss Statement
- The Balance Sheet
- The Cashflow Statement
- Financial Analysis
- Financial Statements Summary
- Assessment: Quiz - Financial Statements
Course assessment
- Assessment: Basic Accounting - Course assessment
Certification / Credits
By the end of this course, you will be able to:
- Explain financial principles, statements and terminology
- Identify accounting transactions and balances and explain how they interact through debits and credits
- Calculate profitability ratios and explore their implications
- Indicate how the ‘accrual’ principle creates a fundamental difference between profit and cashflow
- Recall the links between profit, cashflow and the balance sheet
- Analyze key financial statements
- Recall the ‘fundamental accounting equation’ and explain its consequences
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Alison is the world’s largest free online empowerment platform for education and skills training, offering thousands of CPD-accredited courses and a range of impactful career development tools. It is a for-profit social enterprise dedicated to making it possible for anyone,...