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Accounting and financial reporting is a very strong course from the UK Open University

Accounting and financial reporting
Accounting and financial reporting


12-hour study
 Level 2: intermediate

This free course, Accounting and Financial Reporting, discusses how accountants work as processors and providers of information for decision making and the needs of those who use accounting information. It also looks at the role that accountants play and notes the need to understand relevant organizational and conceptual frameworks.

Course content:

1- Definitions of bookkeeping, accounting and reporting
Accounting, reporting, bookkeeping, accounting and reporting
2- The causes and objectives of accounting
Reasons and objectives for accounting, agency, and accountability planning and decision-making control
3- Financial management and accounting
4 The main elements of accounting information, income and expenses, assets and liabilities balance sheet
5 major financial statements

After studying this course, you should be able to:

Definition of bookkeeping and accounting
• Explain the purposes and general tasks of accounting
• Explain the differences between management and financial accounting
• Describe the main elements of financial accounting information - assets, liabilities, revenue and expenses
• Determine the main financial statements and their purposes.

General information about accounting:

The main elements of accounting information

The results of all commercial transactions over a period of time must be summarized, presented and interpreted in order to evaluate the performance of the business and its financial position on a specific date, in the form of the income statement and balance sheet. In Section 3, it was emphasized that the presentation of financial accounting information is governed by a combination of legal requirements, accounting regulations and agreements. Different types of business entities are subject to different requirements. However, one of the rationale behind preparing income and balance sheet statements is to convert primary financial data into useful information, and this is partly accomplished by organizing, compiling, and presenting data in certain ways to make them meaningful.

The main financial statements

To summarize from previous discussions, the financial statements include:
The income statement or profit and loss statement, which shows income minus costs / expenses for an accounting period. When income exceeds expenditures, profit or surplus arises. When costs / expenditures exceed income, a loss or deficit arises.
Balance Sheet, which is a "snapshot" of assets and liabilities at a point in time - the end of the accounting period. The end of the accounting period is often referred to as the "accounting reference date", "balance sheet date" or "closing date".
To the above, we must also add:
Some business entities, i.e. companies, are required to provide a cash flow statement to show cash movements during the period covered by the income statement. This cash flow statement is considered by the entities required to present it as a third financial statement in addition to the income statement and balance sheet. The cash flow statement will be discussed later in this course when you are familiar with the company financial statements, and examples will be provided there.