Fundamentals of Financial Accounting

Explain the purpose of financial statements and identify their main users.

Demonstrate through numerical examples how fundamental accounting concepts (going concern, accruals, consistency, prudence) affect reported figures.

Define the elements of financial statements (assets, liabilities, equity, income, expenses) and apply the accounting equation.

Apply the double-entry bookkeeping system to record basic business transactions.

Distinguish between capital expenditure and revenue expenditure with examples.

Prepare a trial balance from a set of ledger accounts.

Identify the key components of an audit report and the main regulatory standards governing financial reporting.