Accounting Concepts Overview

Learning Accounting Concepts is a must if you want to become a Financial Analyst or an Investment Banker. Here you will find awesome resources on Accounting covering topics like Balance Sheet (Assets, Liabilities and Shareholder's Equity), Income Statement and Cash Flow Statement. The topics covered here are not only cover basics accounting concepts but also go deep into advanced accounting as used by most financial analysts.

If you are new to accounting, then do go through the case study on accounting which will help you learn the basics of accounting in less than 1 hour.

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Accounting Basics

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WHAT YOU'LL LEARN IN THIS ACCOUNTING CONCEPT?

Here we discuss what is accounting, principles of accounting including the matching principle and conservatism principle, differences between cash basis and accrual accounting, differences between fiscal year and calendar year, differences between IFRS vs US GAAP, Fiscal vs Calendar Year and more.

Bookkeeping

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WHAT YOU'LL LEARN IN BOOKEEPING ACCOUNTING CONCEPT?

Bookeeping is recording day to day financial transactions of the business in a structured format so that it can be easily accessed and analyzed. Here we discuss what is debit and credit, journals and ledgers, trial balance, reconciliation of books, petty cash, debit note vs credit note etc.

Balance Sheet

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WHAT YOU'LL LEARN IN BALANCE SHEET ACCOUNTING CONCEPT?

Balance Sheet is the snapshot of the company that provides details of its sources of funds and uses of funds at a given point in time. Here we discuss the accounting equation, assets, liabilities, bank vs company balance sheet, trial balance vs balance sheet, debt vs equity financing, revenue vs capital reserve etc.

Assets

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WHAT YOU'LL LEARN IN ASSETS

Assets are divided into two parts - current assets and long term assets. It consists of company's property, plant and equipment, cash and cash equivalents, inventory, finished goods, accounts receivables and more. Here we discuss the differences between LIFO and FIFO inventory valuations, tangible and intangible assets, list of cash and cash equivalents, marketable securities, prepaid expenses and more

Liabilities

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WHAT YOU'LL LEARN IN LIABILITIES

Liabilities are also divided into two parts - current liabilities and long term liabilities. Current liabilities include accounts payable, accrued liabilities, notes payable, deferred expenses, unearned revenues and current portion of long term debt. Long-Term liabilities include the long term debt of the company. Additionally, we discuss here about financial lease vs operating lease, off balance sheet financing, accounting for derivatives and convertibles, minority interest etc.

Shareholders Equity

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WHAT YOU'LL LEARN IN SHAREHOLDER'S EQUITY

Shareholders Equity is the capital contribution made by the shareholders of the company. It consists of common stock, additional paid-in capital, preferred stock, treasury stock, other comprehensive income and retained earnings. Here we also discuss how to calculate net worth of the company, what are preferred shares, share buybacks and accelerated buybacks, contingent shares, dilutive vs anti-dilutive securities and more.

Income Statement

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WHAT YOU'LL LEARN IN INCOME STATEMENT ACCOUNTING CONCEPTS

Income Statement provides details of how the revenue of the company is relative to its expenses. Income Statement details the sales, as well as all types of expenses, includes selling, general and admin expenses, depreciation expenses, tax expenses, interest expense and more. Here we also discuss nonrecurring items, EBITDA, EBIT, Types of depreciation, capitalization vs expensing, net operating losses, tax shied, accounting profit vs economic profit and more.

Cash Flow Statement

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WHAT YOU'LL LEARN

Cash flow statement provides the overall flow of cash in the company during a particular year. It consists of cash flow from operations, cash flow from financing and cash flow from investments. Other topics we discuss here are direct vs indirect cash flows, differences between cash flow statement and fund flow statement.

Accounting Careers

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WHAT YOU'LL LEARN

If you want to make a career in accounting, then this is the resource you must look at diligently. We discuss the top accounting interview questions along with tips and tricks to crack accounting interviews. Here we also discuss accounting careers like Financial Accounting, Management Accounting, Cost Accounting, Forensic Accounting, Bookkeeping and Auditing.

Accounting Books

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WHAT YOU'LL LEARN

Here we provide you with the list of top reference books on Accounting, finance for non finance, CPA Study Guide, Managemement Accounting, Auditing and Bookkeeping.

Budgeting

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WHAT YOU'LL LEARN

Budgeting is a process of finding out the expected performance of the company through detailed projections of the financial results and operations of the business. This section covers what is budgeting and its key differences from forecasting