FINANCE-ACC.AS1

Principles of Accounting, Volume 1: Financial Accounting

Learn financial accounting online and make smarter, more informed money decisions.

20 Interactive Lessons and 208 topics mapped to the official exam objectives

Beginner Self-paced · 1 year access

20Interactive Lessons

208Topics

442Flashcards

442Glossary of terms

01 / Skills you'll get

What you will be able to do

Try Free → No credit card required

Learn to read balance sheets and spot valuable investments with this Financial Accounting course.

Master financial statements, monitor performance, and make wise decisions. Gain the skills to avoid costly mistakes, manage finances, and advance in your professional or personal life with assurance.

Interpret balance sheets, income statements, and cash flow reports.
Understand key financial metrics to assess and monitor business health.
Spot red flags and opportunities to make better financial choices.
Get comfortable with journal entries, adjustments, and preparing reports.
Grasp core accounting principles to build confidence for future learning.
Use real-world examples to manage finances and make informed decisions.

Course Highlights

20 Structured Lessons Comprehensive coverage of core course objectives
1 Year Full Access Self-paced learning accessible anytime on all devices

02 / Lessons & labs

See exactly what you will learn and practice

Download outline (PDF)

Lessons

20 Interactive Lessons · 208 topics

01 Preface 3 topics

About OpenStax
About OpenStax resources
About Principles Accounting

02 Role of Accounting in Society 7 topics

Explain the Importance of Accounting and Distinguish between Financial and Managerial Accounting
Identify Users of Accounting Information and How They Apply Information
Describe Typical Accounting Activities and the R...g, Recording, and Reporting Financial Activities
Explain Why Accounting Is Important to Business Stakeholders
Describe the Varied Career Paths Open to Individuals with an Accounting Education
Summary
Questions

03 Introduction to Financial Statements 10 topics

Describe the Income Statement, Statement of Owne...tatement of Cash Flows, and How They Interrelate
Define, Explain, and Provide Examples of Current...rent Liabilities, Equity, Revenues, and Expenses
Prepare an Income Statement, Statement of Owner’s Equity, and Balance Sheet
Summary
Questions
Exercise Set A
Exercise Set B
Problem Set A
Problem Set B
Thought Provokers

04 Analyzing and Recording Transactions 13 topics

Describe Principles, Assumptions, and Concepts o...g and Their Relationship to Financial Statements
Define and Describe the Expanded Accounting Equation and Its Relationship to Analyzing Transactions
Define and Describe the Initial Steps in the Accounting Cycle
Analyze Business Transactions Using the Accounti...of Business Transactions on Financial Statements
Use Journal Entries to Record Transactions and Post to T-Accounts
Prepare a Trial Balance
Summary
Questions
Exercise Set A
Exercise Set B
Problem Set A
Problem Set B
Thought Provokers

05 The Adjustment Process 12 topics

Explain the Concepts and Guidelines Affecting Adjusting Entries
Discuss the Adjustment Process and Illustrate Common Types of Adjusting Entries
Record and Post the Common Types of Adjusting Entries
Use the Ledger Balances to Prepare an Adjusted Trial Balance
Prepare Financial Statements Using the Adjusted Trial Balance
Summary
Questions
Exercise Set A
Exercise Set B
Problem Set A
Problem Set B
Thought Provokers

06 Completing the Accounting Cycle 11 topics

Describe and Prepare Closing Entries for a Business
Prepare a Post-Closing Trial Balance
Apply the Results from the Adjusted Trial Balanc...d Explain How These Measures Represent Liquidity
Appendix: Complete a Comprehensive Accounting Cycle for a Business
Summary
Questions
Exercise Set A
Exercise Set B
Problem Set A
Problem Set B
Thought Provokers

07 Merchandising Transactions 14 topics

Compare and Contrast Merchandising versus Service Activities and Transactions
Compare and Contrast Perpetual versus Periodic Inventory Systems
Analyze and Record Transactions for Merchandise Purchases Using the Perpetual Inventory System
Analyze and Record Transactions for the Sale of Merchandise Using the Perpetual Inventory System
Discuss and Record Transactions Applying the Two Commonly Used Freight-In Methods
Describe and Prepare Multi-Step and Simple Income Statements for Merchandising Companies
Appendix: Analyze and Record Transactions for Me...es and Sales Using the Periodic Inventory System
Summary
Questions
Exercise Set A
Exercise Set B
Problem Set A
Problem Set B
Thought Provokers

08 Accounting Information Systems 12 topics

Define and Describe the Components of an Accounting Information System
Describe and Explain the Purpose of Special Journals and Their Importance to Stakeholders
Analyze and Journalize Transactions Using Special Journals
Prepare a Subsidiary Ledger
Describe Career Paths Open to Individuals with a... Education in Accounting and Information Systems
Summary
Questions
Exercise Set A
Exercise Set B
Problem Set A
Problem Set B
Thought Provokers

09 Fraud, Internal Controls, and Cash 14 topics

Analyze Fraud in the Accounting Workplace
Define and Explain Internal Controls and Their Purpose within an Organization
Describe Internal Controls within an Organization
Define the Purpose and Use of a Petty Cash Fund, and Prepare Petty Cash Journal Entries
Discuss Management Responsibilities for Maintaining Internal Controls within an Organization
Define the Purpose of a Bank Reconciliation, and...econciliation and Its Associated Journal Entries
Describe Fraud in Financial Statements and Sarbanes-Oxley Act Requirements
Summary
Questions
Exercise Set A
Exercise Set B
Problem Set A
Problem Set B
Thought Provokers

10 Accounting for Receivables 14 topics

Explain the Revenue Recognition Principle and Ho...rrent and Future Sales and Purchase Transactions
Account for Uncollectible Accounts Using the Balance Sheet and Income Statement Approaches
Determine the Efficiency of Receivables Management Using Financial Ratios
Discuss the Role of Accounting for Receivables in Earnings Management
Apply Revenue Recognition Principles to Long-Term Projects
Explain How Notes Receivable and Accounts Receivable Differ
Appendix: Comprehensive Example of Bad Debt Estimation
Summary
Questions
Exercise Set A
Exercise Set B
Problem Set A
Problem Set B
Thought Provokers

11 Inventory 12 topics

Describe and Demonstrate the Basic Inventory Valuation Methods and Their Cost Flow Assumptions
Calculate the Cost of Goods Sold and Ending Inventory Using the Periodic Method
Calculate the Cost of Goods Sold and Ending Inventory Using the Perpetual Method
Explain and Demonstrate the Impact of Inventory ...Errors on the Income Statement and Balance Sheet
Examine the Efficiency of Inventory Management Using Financial Ratios
Summary
Questions
Exercise Set A
Exercise Set B
Problem Set A
Problem Set B
Thought Provokers

12 Long-Term Assets 12 topics

Distinguish between Tangible and Intangible Assets
Analyze and Classify Capitalized Costs versus Expenses
Explain and Apply Depreciation Methods to Allocate Capitalized Costs
Describe Accounting for Intangible Assets and Record Related Transactions
Describe Some Special Issues in Accounting for Long-Term Assets
Summary
Questions
Exercise Set A
Exercise Set B
Problem Set A
Problem Set B
Thought Provokers

13 Current Liabilities 12 topics

Identify and Describe Current Liabilities
Analyze, Journalize, and Report Current Liabilities
Define and Apply Accounting Treatment for Contingent Liabilities
Prepare Journal Entries to Record Short-Term Notes Payable
Record Transactions Incurred in Preparing Payroll
Summary
Questions
Exercise Set A
Exercise Set B
Problem Set A
Problem Set B
Thought Provokers

14 Long-Term Liabilities 11 topics

Explain the Pricing of Long-Term Liabilities
Compute Amortization of Long-Term Liabilities Using the EffectiveInterest Method
Prepare Journal Entries to Reflect the Life Cycle of Bonds
Appendix: Special Topics Related to Long-Term Liabilities
Summary
Questions
Exercise Set A
Exercise Set B
Problem Set A
Problem Set B
Thought Provokers

15 Corporation Accounting 12 topics

Explain the Process of Securing Equity Financing through the Issuance of Stock
Analyze and Record Transactions for the Issuance and Repurchase of Stock
Record Transactions and the Effects on Financial...rty Dividends, Stock Dividends, and Stock Splits
Compare and Contrast Owners’ Equity versus Retained Earnings
Discuss the Applicability of Earnings per Share as a Method to Measure Performance
Summary
Questions
Exercise Set A
Exercise Set B
Problem Set A
Problem Set B
Thought Provokers

16 Partnership Accounting 12 topics

Describe the Advantages and Disadvantages of Organizing as a Partnership
Describe How a Partnership Is Created, Including the Associated Journal Entries
Compute and Allocate Partners’ Share of Income and Loss
Prepare Journal Entries to Record the Admission and Withdrawal of a Partner
Discuss and Record Entries for the Dissolution of a Partnership
Summary
Questions
Exercise Set A
Exercise Set B
Problem Set A
Problem Set B
Thought Provokers

17 Statement of Cash Flows 13 topics

Explain the Purpose of the Statement of Cash Flows
Differentiate between Operating, Investing, and Financing Activities
Prepare the Statement of Cash Flows Using the Indirect Method
Prepare the Completed Statement of Cash Flows Using the Indirect Method
Use Information from the Statement of Cash Flows to Prepare Ratios to Assess Liquidity and Solvency
Appendix: Prepare a Completed Statement of Cash Flows Using the Direct Method
Summary
Questions
Exercise Set A
Exercise Set B
Problem Set A
Problem Set B
Thought Provokers

18 Appendix A: Financial Statement Analysis 5 topics

Financial Statement Analysis
Horizontal Analysis
Vertical Analysis
Overview of Financial Ratios
Advantages and Disadvantages of Financial Statement Analysis

19 Appendix B: Time Value of Money 4 topics

Present Value of $1 Table
Present Value of an Ordinary Annuity Table
Future Value of $1 Table
Future Value of an Ordinary Annuity Table

20 Appendix C: Suggested Resources 5 topics

Sample Financial Statements
Accounting Software and Tools
Personal Finance
Accounting-Related Organizations
Accounting Exams and Certificates

03 / FAQs

Questions before you start

What core principles guide financial accounting?

To provide clear and accurate financial reporting, financial accounting uses principles such as consistency, relevance, reliability, and comparability.

Will I find financial accounting hard to master?

This financial accounting online course makes accounting principles and their applications approachable through clear lessons and practical examples, so you avoid needless complexity and learn with ease.

Do I need prior experience to start this course?

No prior experience is needed. This basic financial accounting course will guide you from the very basics to advanced concepts with clear, practical lessons.

How long will the financial accounting course take to complete?

Normally, our students complete this course in 4-6 weeks, studying around 3-5 hours a week. But it completely depends on your pace and study frequency.

Will I get a certificate after completion?

Yes, you receive a certificate of completion for this financial accounting online course to showcase skills on your resume and LinkedIn.

Start Strong with Smart Finance Skills

Discover best practices to analyze business health, do journal entries, and make profitable decisions.

1 year of full access
Certificate of completion

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