Accounting Fundamentals

Explore the language of business — what accounting is, the fundamental equation, double-entry bookkeeping, account types, and the full accounting cycle. Resources: Weygandt et al. Financial Accounting, FASB Conceptual Framework, Khan Academy Accounting.

Master the four core financial statements — the income statement, balance sheet, cash flow statement, and statement of stockholders' equity — and learn how they interconnect. Resources: FASB Conceptual Framework, Penman (2013) Financial Statement Analysis, SEC EDGAR filings.

Master the mechanics of recording business transactions — T-accounts, debits and credits, adjusting entries, closing entries, and the trial balance. Resources: Horngren et al. Accounting, Weygandt Financial Accounting, FASB Codification.

Learn to evaluate company performance using liquidity, profitability, leverage, and efficiency ratios — culminating in the DuPont decomposition framework. Resources: Penman (2013) Financial Statement Analysis, CFA Institute, Damodaran Online.

Understand cost behavior, break-even analysis, contribution margin, activity-based costing, and variance analysis — the tools managers use to control costs and maximize profit. Resources: Horngren et al. Cost Accounting, Drury (2018) Management and Cost Accounting.

Apply accounting information to management decisions — budgeting, capital budgeting (NPV/IRR), make-vs-buy analysis, performance measurement, and transfer pricing. Resources: Kaplan & Atkinson Advanced Management Accounting, Brealey Myers & Allen Principles of Corporate Finance.

Explore auditing principles, the distinction between internal and external audits, GAAP vs IFRS standards, landmark ethical failures, and the growing field of forensic accounting. Resources: Arens et al. Auditing, AICPA Standards, SEC Enforcement Actions.