Principles of Accounting

Businesses use accounting to create financial statements and analyze them to keep track of their finances. For that information to be meaningful and to represent companies fairly, everyone has to play by the same set of rules. Those principles are what this course covers, including the various standards used throughout the world and why they differ. We focus on the U.S. standard in particular and some of its most important principles, which aim to make financial reporting useful to investors, creditors, and anyone making financial decisions or improving company performance.

Accounting jargon is a language all its own. If you're not familiar with the terminology, having an accounting-based conversation is nearly impossible. In this program, we help you translate common financial terms so you can feel more comfortable interpreting and engaging in corporate finance discussions. We go over four useful terms to give you a solid foundation for understanding and discussing company finances.

When a company tracks its income and expenses, the method it uses is called its "basis of accounting." The two most commonly used methods are the cash basis and the accrual basis.

In this course, we cover what these two methods are, how they differ, and the pros and cons of each.

Fraud is a biggie in the financial world. It can affect companies of every size, so one of the biggest concerns for any company should be the avoidance of fraud. Understanding what constitutes fraud can help make sure you have procedures in place to avoid it. In this program, we'll be discussing what fraud is, why it happens, and what can be done to prevent it.