MODULE 2.3: Basic Accounting

Summary and objectives

Accounting assumptions and principles provide the bases in preparing, presenting and interpreting financial statements. Financial statements are the source of information were business decisions are based primarily. The extensive and meticulous analysis facilitate internal and external users to proceed to decisions. The accounting concepts not only explain the logic behind the purpose of formatting financial statements but also the necessity for entrepreneurs to understand the common code of business communication.

Expected learning outcomes

  • Understand the nature and purpose of financial statements
  • Analyze the effect of business transactions on an organization's accounting records Develop the ability accounting concepts, principles
  • Communicate information,
  • Convert quantitative data into qualitative information
  • Facilitate decision-making processes


Measure, Process, Communicate, Balance Sheet, Income Statement, Expenses, Revenues, Cash flows

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