Foundations of Journals and Ledgers

Providing effective and accurate financial information involves using journals and ledgers to record and report financial data. Although many companies use technology and software to track financial information, it is important to know and understand how the various transactions and financial statements are prepared. There are many factors to consider in accounting, like utilizing double-entry accounting, understanding debits and credits, and how to record special transactions like accounts receivable, inventory, and cost of goods sold.

There is a lot of work that goes on before the familiar financial statements are generated. In this course, you will learn about the different ways companies account for financial information. In financial accounting, a company might use either accrual accounting or cash accounting. The major difference between the two types of accounting methods is the timing of when the company’s sales and purchases are recorded. You will learn about these two methods and why companies choose one over the other for their accounting practices. Accountants record long-term assets and other concerns like salaries, leases, and taxes; each of these concerns are reflected in the company’s financial statements. Understanding these special concerns and how they are taken into account will help you understand the processes behind the preparation of the main financial statements.