ONCE1159 - Understanding Debits and Credits
Course Description
In this course, you will learn about the accounting equation and the five categories involved in every business (Assets, Liabilities, Owner’s Equity, Revenue and Expenses). Every financial transaction falls into one or more of these categories. Learn how to create a chart of accounts that meet the needs of your business. You will learn how double entry bookkeeping works and the process of recording debits and credits. This course will show you how to identify, analyze and record transactions using journal entries under the cash basis accounting method.Course Outline
Unit 1
The Accounting Equation and Categories
- The Accounting Equation
- The Five Accounting Categories
- The Chart of Accounts
- Account Placement
- Activity ~ Categorizing Accounts
- Cash Basis Accounting vs. Accrual Basis Accounting
Unit 2
Debits and Credits
- T-Accounts
- Debits and Credits
- Double Entry Bookkeeping
- Analyze Financial Activities (Transactions)
Unit 3
Assets, Liabilities, and Owner’s Equity
- Recording Transactions for Assets
- Recording Transactions for Liabilities
- Recording Transactions for Owner’s Equity
Unit 4
Revenue and Expenses
- Recording Transactions for Revenue
- Recording Transactions for Expenses
- Activity ~ Recording Transactions
Learner Outcomes
Course outcomes
Upon completion of this course, you will be able to:
- Create a chart of accounts that meet the needs of your business
- Analyze and record transactions accurately and in a timely fashion
- Maintain your books using the cash basis accounting method
Course objectives
- Students will gain an understanding of the accounting equation and the five accounting categories.
- Students will learn the difference between cash basis accounting and accrual accounting.
- Students will learn the importance of recording financial activity in a timely manner.
- Students will learn how to use the double entry bookkeeping system with a solid understanding of how debits and credits work.
- Students will learn how to properly record financial activity using journal entries.
Notes
Instructor: Sharon deFonteny, has a degree in Business Education with a concentration in Accounting and spent many years in Corporate America working in Accounting and Finance. For the past 5 years, she has created and taught online Business courses for Bucks County Community College. Her experience in business, as well as experience in teaching, has allowed her to help people understand the Accounting and Finance process.
This class can be taken as part of the "Certificate in Bookkeeping."
The Bookkeeping Certificate courses must be taken in the below order (the classes build off each other):
- Understanding Debits and Credits
- General Ledger and Month End Procedures
- Closing Procedures and Financial Statements
Applies Towards the Following Certificates
- Certificate in Bookkeeping : Certificate in Bookkeeping (Online)