When someone decides to study accounting or bookkeeping at a university, the first course they are required to take is Financial Accounting. The role of financial accountants is to compile and report an organization's financial information (e.g., assets and net profit) to external users (stockholders, banks, etc.). Stockholders and lenders aren't simply going to take management's word that business is doing great; they want evidence of the firm's financial health, and this evidence takes the form of financial statements that are built using the basic tools of accounting. The topics below will help you obtain a firm grasp of the fundamentals, then progress to an understanding of the different types of assets, liabilities, and equity before ultimately culminating with a discussion of the four major financial statements.
topics in financial accounting
This topic presents the most fundamental concepts in accounting. We begin with the concept of debits and credits and the basic accounting equation, then move on to journal entries, T-accounts, and putting together a trial balance.
Once you know the basics of accounting and have a conceptual understanding of assets, liabilities, and equity, you are ready to learn about the financial statements. In this topic, we provide in-depth coverage of the four major financial statements: the Balance Sheet, Income Statement, Statement of Cash Flows, and Statement of Retained Earnings.