Overview

In this second course, you will dive deeper into the world of bookkeeping and focus on accounting for assets. If you are familiar with bookkeeping basics, such as double entry accounting, you are ready for this course. You will gain an understanding of common asset types, learn how to account for inventory, calculate cost of goods sold, and work with Property, Plant, and Equipment (PP&E). Upon completing this course, you will use your new knowledge of assets to record transactions and produce financial statements for increasingly complex business situations. By the end of this course, you will be able to: -Summarize the common types of assets a business may have -Describe the importance of control over inventory -Outline how depreciation expense is reported on an income statement -Illustrate how transactions can be recorded in terms of the resulting change in the elements of the accounting equation. Course 1 Bookkeeper Basics, or the equivalent, is a recommended prerequisite for this course.

Syllabus

Tracking financial performance

This module introduces you to the fundamentals of tracking a business’s financial performance through accurate recording and management of assets, sales transactions, inventory, and depreciation. It emphasizes how bookkeepers support business owners in understanding financial health and making informed operational decisions.

What are assets?

This module introduces the concept of assets, their classifications, and how they are tracked in bookkeeping. You will explore current and fixed assets, the process for recording assets in financial statements, and how concepts like leasing, debits, credits, and natural account balances affect asset management.

Recording sales transactions

This module explains how bookkeepers record, track, and manage sales transactions—both cash and credit—and how these transactions impact a business’s accounting equation. You will practice applying correct debit and credit entries to maintain balanced financial records and understand how sales affect assets, liabilities, and equity.

Recording other notes and uncollectible accounts

This module teaches how to manage promissory notes, calculate interest, and properly record notes receivable, notes payable, doubtful accounts, and uncollectible debts. You will gain practical experience in handling overdue payments, writing off bad debts, and maintaining accurate financial records.

Tracking merchandise inventory

This module explores how bookkeepers track, value, and adjust merchandise inventory to ensure accurate financial reporting. You will examine inventory types, valuation methods, and how proper inventory management impacts the cost of goods sold and the accounting equation.

Reporting depreciation

This module explores how bookkeepers record and report depreciation to reflect the declining value of long-term assets over time. You will understand how depreciation impacts financial statements, the accounting equation, and overall business decision-making.

Summary activity and exam: Tracking assets and sales

This module reviews key bookkeeping concepts related to tracking assets and sales, including merchandise inventory, depreciation, and the impact of transactions on financial statements. You will apply your knowledge through practical scenarios to reinforce understanding of how these elements affect a business’s financial position.