| If you have recently been accepted into any | | | | equal to the total amount of the same |
| institution for an accounting course, chances are | | | | organizations capital plus liabilities. If you are still |
| that one of the very first courses you will have | | | | unfamiliar with these things, you will be taught |
| to take is on financial accounting. The term | | | | what an asset is, what a liability is, and what |
| 'financial accounting' sounds very impressive, but it | | | | capital, in the accounting context, refers to. |
| gives no clues on what it is all about. And it is | | | | The third thing you will definitely be taught in |
| from such a background that you could find | | | | financial-accounting is cash-flow management. This |
| yourself getting online, and looking for information | | | | will start with an introduction into the workings of |
| as to what financial accounting is all about. It is | | | | the cash-book, before proceeding deeper into the |
| exactly that type of information that we now | | | | mechanics that go into control of the money that |
| proceed to give you. That we do not by simply | | | | gets into an organization's tills, and money that |
| telling you what financial accounting is (different | | | | gets out of the same tills. |
| authorities posit different definitions); but by going | | | | The fourth thing that you will definitely be taught, |
| with you on a journey in which we will explore | | | | in financial accounting, is that which is 'accounting |
| some of the things you will be studying in the | | | | for expenses' and it is here that you will be |
| financial accounting module. | | | | introduced into what is referred to as the petty |
| Now one of the things you will definitely be | | | | cash book - which is quite distinct from the |
| learning in financial-accounting is the double-entry | | | | organization's main cash book. |
| accounting concept. This can be confusing at first, | | | | In a modern financial-accounting course, you will |
| but you will soon get a hang of it, and actually get | | | | also get to learn something about the |
| to love it, because it feels like a game once you | | | | computerization of accounts. The whole |
| understand the rules. In this area, you will be | | | | accounting course will have a distinct module on |
| taught about the idea of a 'credit' and 'debit' in | | | | this, of course, but many curriculum planners find |
| accounting, and you will come to learn that in the | | | | it necessary to give students in financial |
| accounting system, every transaction generates a | | | | accounting ideas on how the various 'books' they |
| debit (or a set of debits) in some account(s), and | | | | have been studying about can be computerized. |
| that every transaction also generates a credit (or | | | | How the various accounts that students |
| a series of credits) in some account(s). It seems | | | | encounter in financial-accounting (from the balance |
| complex when explained in this way, but when | | | | sheet to the profit and loss account and onto the |
| your instructors show you by way of example, | | | | cash books we have talked about) can be |
| you will find it all very easy. | | | | presented in spreadsheets is explored here. A |
| To help you make sense of double-entry | | | | student will also be taught how to interact with |
| accounting, the second thing you will be taught in | | | | the various accounting software programs, and |
| financial accounting is the accounting equation. It is | | | | how the concepts they will have learnt in financial |
| an equation that is accepted globally, and it simply | | | | accounting play out when applied in the accounting |
| says that the total value of an entity's assets is | | | | software. |