Accounting Principles

INTERNATIONAL TRAINING ON ACCOUNTING PRINCIPLES
COURSE BACKGROUND

Accounting is often referred to as the “language of business,” providing the indispensable framework for recording, classifying, summarizing, and reporting an organization’s financial transactions. Regardless of one’s role in an organization – be it a manager, entrepreneur, investor, or simply an engaged citizen – understanding these fundamental principles is crucial for interpreting financial health, making informed decisions, and ensuring transparency and accountability. Without a solid grasp of how financial data is generated and presented, individuals can misinterpret performance, misallocate resources, or fail to identify critical financial risks.

Proficiency in accounting principles is not just for aspiring accountants; it empowers every business professional to communicate effectively about financial matters, understand profitability drivers, assess liquidity, and contribute meaningfully to budgeting and strategic planning. This foundational knowledge is especially valuable in a growing and formalizing economy like Kenya, where adherence to financial standards and clear reporting are essential for fostering investor confidence, ensuring regulatory compliance, and driving sustainable business development.

ECAS Institute offers this “Accounting Principles” course to provide participants with a comprehensive and practical introduction to the foundational concepts, rules, and procedures that govern financial accounting. This program will equip individuals with the skills to confidently understand financial information, record transactions accurately, and prepare basic financial statements, laying a vital groundwork for any business or finance career.

COURSE OBJECTIVES OF THE TRAINING

Upon successful completion of this course, participants will be able to:

  • Understand the fundamental concepts, principles, and assumptions underlying financial accounting.
  • Explain and apply the accounting equation and the rules of debits and credits.
  • Master the accounting cycle, from recording transactions to preparing financial statements.
  • Prepare and interpret the three core financial statements: Income Statement, Balance Sheet, and Cash Flow Statement.
  • Account for various asset, liability, and equity accounts in accordance with basic accounting principles.
  • Understand the importance of internal controls and ethical conduct in accounting practice.
  • Differentiate between cash basis and accrual basis accounting.
  • Communicate effectively using standard accounting terminology.
  • Appreciate the role of accounting information in business decision-making and performance evaluation.
WHAT YOU WILL LEARN

This course will provide you with the essential tools to understand and interpret financial information, enabling you to speak the “language of business” fluently. You will learn to:

  • Define accounting and its various users (internal vs. external).
  • Apply the accounting equation (Assets = Liabilities + Equity) to analyze business transactions.
  • Understand the double-entry bookkeeping system and the rules of debits and credits.
  • Journalize business transactions accurately and systematically.
  • Post journal entries to ledger accounts (T-accounts).
  • Prepare a trial balance to ensure the equality of debits and credits.
  • Make adjusting entries for accruals, deferrals, depreciation, and bad debts.
  • Prepare the Income Statement (Profit or Loss Account) to report a company’s profitability.
  • Construct the Balance Sheet to present a company’s financial position at a specific point in time.
  • Prepare a basic Cash Flow Statement to show sources and uses of cash.
  • Perform closing entries at the end of an accounting period.
  • Account for key elements like cash, accounts receivable, inventory, property, plant & equipment, accounts payable, and owner’s equity.
  • Understand basic depreciation methods.
  • Recognize the ethical responsibilities of accountants and the importance of financial integrity.
DURATION AND PROGRAM

This is a structured, foundational training course designed for clear, step-by-step learning and hands-on practice. The program will feature a blend of expert-led lectures, illustrative examples, extensive practical exercises in recording transactions and preparing financial statements, and review questions to reinforce understanding. Participants will work through realistic accounting scenarios, building confidence and proficiency in applying accounting principles. The specific duration of the course will be communicated upon registration, tailored to ensure comprehensive coverage and the development of strong fundamental accounting skills.

TARGET PARTICIPANTS

This course is fundamental for anyone who needs to understand how financial information is generated, structured, and interpreted. It will particularly benefit:

  • Aspiring Accountants and Finance Professionals
  • Small Business Owners and Entrepreneurs
  • Managers and Supervisors across various departments (e.g., Marketing, Operations, HR) who interact with financial data.
  • Students in business, economics, and related fields.
  • Individuals seeking to gain foundational financial literacy for personal or professional growth.
  • New Employees in accounting or finance departments.
  • Anyone preparing for more advanced finance or business courses.
TRAINING MODULES

The course is structured into comprehensive modules, building accounting knowledge progressively from the basics to the preparation of core financial statements:

No Module Details
1. Introduction to Accounting and the Accounting Equation This introductory module defines accounting, explains its role in business, differentiates between financial and managerial accounting, and introduces the fundamental accounting equation.

Key Topics:

  • Definition and purpose of accounting.
  • Users of accounting information (internal vs. external).
  • Types of business organizations (sole proprietorship, partnership, company).
  • The accounting equation: Assets = Liabilities + Equity.
  • Analyzing business transactions using the accounting equation.
2. Debits, Credits, and the Journalizing Process This module introduces the core mechanics of double-entry bookkeeping, focusing on the rules of debits and credits and how to record transactions in the journal.

Key Topics:

  • The double-entry accounting system.
  • Rules of debits and credits.
  • Chart of Accounts.
  • Analyzing transactions into debits and credits.
  • Journalizing business transactions.
3. Posting, Trial Balance, and Adjusting Entries This module covers the next steps in the accounting cycle: posting journal entries to ledger accounts, preparing an unadjusted trial balance, and making necessary adjusting entries at period-end.

Key Topics:

  • Posting journal entries to ledger accounts (T-accounts).
  • The purpose and preparation of an unadjusted trial balance.
  • Distinction between cash basis and accrual basis accounting.
  • Types of adjusting entries (accruals, deferrals, depreciation, uncollectible accounts).
4. The Income Statement (Profit or Loss Account) This module focuses on the preparation and interpretation of the Income Statement, which summarizes a company’s revenues and expenses over a period to determine its profitability.

Key Topics:

  • Components of the Income Statement (Revenue, Cost of Goods Sold, Gross Profit, Operating Expenses).
  • Calculating Operating Profit and Net Profit.
  • The Matching Principle.
  • Single-step vs. Multi-step Income Statement formats.
5.
 The Balance Sheet (Statement of Financial Position) This module delves into the preparation and interpretation of the Balance Sheet, a snapshot of a company’s assets, liabilities, and equity at a specific point in time.

Key Topics:

  • Current vs. Non-Current Assets (Cash, Accounts Receivable, Inventory, Property, Plant & Equipment).
  • Current vs. Non-Current Liabilities (Accounts Payable, Loans, Accruals).
  • Owner’s Equity/Shareholders’ Equity (Capital, Retained Earnings).
  • Classification and presentation on the Balance Sheet.
6. The Cash Flow Statement and Closing Entries This module covers the third primary financial statement, the Cash Flow Statement, which details cash inflows and outflows, and concludes the accounting cycle with closing entries.

Key Topics:

  • Purpose of the Cash Flow Statement.
  • Cash flow from Operating Activities (Direct and Indirect Methods – basic overview).
  • Cash flow from Investing Activities.
  • Cash flow from Financing Activities.
  • Importance of cash vs. profit.
  • Closing entries and the post-closing trial balance.
7. Accounting for Specific Items and Ethical Considerations This module delves into specific accounting treatments for common business items and emphasizes the ethical responsibilities inherent in accounting practice.

Key Topics:

  • Accounting for Inventories (FIFO, LIFO, Weighted Average – basic).
  • Depreciation of Fixed Assets (Straight-line, Reducing Balance).
  • Accounting for Receivables (Bad Debts).
  • Introduction to basic Internal Controls.
  • Ethical principles in accounting and professional conduct.
  • Overview of accounting standards (e.g., IFRS/IAS) and their relevance.
TRAINING STYLE

The modules will be taught through PowerPoint presentations, and lectures and will include a case study/field visit, breakout sessions, case studies and other interactive discussion components.

The course will also include a few guest speakers, both in person and via Zoom and other online learning platforms for overseas speakers. This provides useful real-world insights alongside the more theoretical aspects of the course.

The conference faculty shall consist of experienced decision makers, as well as practitioners and representatives from established educational and research institutions active around climate change, engineering and international development. Throughout the course, theoretical presentation of concepts will be moderated and more group discussions and plenary engagements will be optimized. PowerPoint presentations will be made by facilitators and resource persons, to highlight key concepts before embarking on group work.

GENERAL NOTES
  • Training manuals and additional reference materials are provided to the participants.
  • Upon successful completion of this course, participants will be issued with a certificate.
  • We can also do this as a tailor-made course to meet organization-wide needs. Contact us to find out more: info@ecasiafrica.org.
  • Payment should be sent to our bank account before the start of training and proof of payment sent to: info@ecasiafrica.org.
ABOUT ECAS INSTITUTE

The ECAS Institute designs and delivers independent and targeted training, research, and consulting services. Our work focusses on climate change and resilience building, carbon markets, renewable energy, nature-based solution, biodiversity conservation, agriculture and food systems, We are located in Nairobi Kenya and work across the African region. We have implemented training and research assignments in Kenya, Tanzania, Uganda, South Sudan, Somalia, Malawi, Rwanda, Congo, and South Africa. Globally, we have supported our partners from the UK, Denmark, Italy, Sweden, Germany, and USA.

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