Accounting Basics

Accounting Basics is a Breni path that teaches the language of business: how transactions are recorded and turned into financial statements. Its 8 courses cover what accounting is, the accounting equation, double-entry bookkeeping, the income statement, the balance sheet and cash flow, month-end adjustments, ratio analysis and management accounting. Learners finish able to post journal entries, prepare a trial balance and full accounts, and work out a break-even point. Debits and credits come before any statement, because a course becomes available only after the one before it is finished.

• 8 courses
• 10 learning objectives
• Level: beginner
• Language: English
• Price: Subscription, free trial

What you will be able to do

• Record transactions as balanced debit and credit journal entries
• Prepare a trial balance, income statement and balance sheet for a small business
• Make month-end adjustments for accruals, prepayments and depreciation
• Explain why a profitable business can still run short of cash
• Calculate profit margins, liquidity ratios and a break-even point

Full curriculum

Part 1 · The basics

1. What Accounting Is: The Basics

Explain what accounting records and who relies on it. Units, in order: Financial and management accounting; Who uses accounts; Bookkeeping compared with accounting; Accounting standards such as IFRS and GAAP; Cash and accrual accounting.

• — Financial and Management Accounting
  Learn the main differences between financial and management accounting reports.
  • Financial Accounting
  • Management Accounting
• — Who Uses Accounts
  Find out who relies on business accounts to make smart choices.
  • Internal Users
  • External Users
• — Bookkeeping and Accounting
  Compare daily bookkeeping tasks with broader accounting analysis work.
  • Bookkeeping Basics
  • Accounting Analysis
• — Accounting Standards
  Explore official rules like IFRS and GAAP that guide reports.
  • What is GAAP?
  • What is IFRS?
• — Cash and Accrual Methods
  Compare cash and accrual methods for recording business money.
  • Cash Accounting
  • Accrual Accounting

2. The Accounting Equation

Use assets, liabilities and equity to describe any business. Units, in order: Assets; Liabilities; Equity; Assets equal liabilities plus equity; Recording owner capital and drawings; How every transaction keeps the equation balanced.

3. Double-Entry Bookkeeping

Record transactions as debits and credits that always balance. Units, in order: Debits and credits; The chart of accounts; Journal entries; The general ledger; The trial balance.

Part 2 · Financial statements

4. The Income Statement

Build an income statement and read what it says about profit. Units, in order: Revenue and when to recognise it; Cost of goods sold and gross profit; Operating expenses; Net profit; Common-size income statements.

5. The Balance Sheet and Cash Flow

Prepare a balance sheet and explain how profit differs from cash. Units, in order: Current and non-current items; Preparing a balance sheet; The cash flow statement; Operating, investing and financing cash; Why profitable firms run out of cash.

6. Adjustments and Closing the Books

Make the month-end adjustments that keep accounts accurate. Units, in order: Accruals and prepayments; Depreciation; Inventory methods; Bad debts; Closing entries.

Part 3 · Using accounts

7. Analysing Financial Statements

Use ratios to judge a business's profitability, liquidity and debt. Units, in order: Profit margins; Current and quick ratios; Debt-to-equity; Return on assets and equity; Comparing two companies.

8. Budgeting and Management Accounting

Use accounting numbers to plan and make business decisions. Units, in order: Fixed and variable costs; Break-even analysis; Building a budget; Variance analysis; Pricing decisions.

Sample: What Accounting Is: The Basics

The opening tier, (Financial and Management Accounting). Learn the main differences between financial and management accounting reports.

Financial Accounting

Discover how financial reports show company performance to people outside the firm.

Management Accounting

See how internal managers use special reports to make daily business choices.

Questions about Accounting Basics

Can I learn accounting on my own?

Yes, the basics of accounting can be learned without a classroom. Accounting Basics on Breni starts from the accounting equation and builds to full financial statements.

Is accounting hard for beginners?

Debits and credits feel strange at first, but they follow a few fixed rules. The path gives double-entry bookkeeping a full course before moving on.

What is the difference between accounting and bookkeeping?

Bookkeeping records transactions day to day. Accounting also adjusts, prepares and interprets the statements, while the Bookkeeping Basics path focuses on the recording side.

Does this path prepare me for ACCA or CPA exams?

No. It covers the foundations those exams build on but does not follow their syllabus.

Do I get a certificate in accounting?

Completing the 8 courses earns a Breni certificate of completion. It is not a professional accounting qualification.

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