Course outline

28 topics in six parts, ordered so each one builds on the ones before it. 12 have a written lesson here. 12 are taught in one of Grant’s videos until a written lesson is published. 4 are planned.

New to the subject? Read how to use this path

Part 1

How businesses work

Accounting describes something. This part is about that something: what a business does with resources, how it earns more than it spends, and the processes that produce every transaction accounting later records.

01What a business doesWhat is a business actually doing, before any accounting is involved?Video on YouTube · 8 min · written lesson planned (opens in a new tab)
02How a business makes moneyWhere does profit come from, and what determines how much a business makes?Video on YouTube · 6 min · written lesson planned (opens in a new tab)
03Core business processesWhich recurring processes, such as order-to-cash and procure-to-pay, produce a business's transactions?Video on YouTube · 6 min · written lesson planned (opens in a new tab)

Part 2

Accounting foundations

Why accounting exists, what it measures, and the equation that every later statement depends on. After this part, a transaction should read as a change to resources and claims rather than as a rule to memorize.

Part 3

Assets, liabilities, equity, revenue, and expenses

The five elements are the categories every amount on the statements belongs to. This part explains what each one represents, what its number does and does not mean, and how revenue and expenses flow into equity.

09AssetsWhat makes something an asset, and what does an asset's carrying amount represent?Planned. Not available yet.
10LiabilitiesWhat is a liability, and how is an obligation different from an ownership claim?Planned. Not available yet.
11EquityWhat is equity, and why is it the residual claim that absorbs risk first?Written lesson: Why equity is riskier than debt: the residual claim
12Revenue, expenses, and equityWhy do revenue and expenses change equity, and why does profit increase it?Written lesson: Why revenue increases equity and expenses decrease it
13Share repurchases and treasury stockWhy does buying back shares reduce equity instead of creating an asset?Written lesson: Why treasury stock reduces equity

Part 4

Financial statements and how they connect

The income statement, balance sheet, and statement of cash flows answer different questions about the same business. This part explains what each reports and how an amount on one statement explains a change on another.

Part 5

Accruals, cash, depreciation, and working capital

Accounting records economic activity when it happens, and cash often moves at a different time. This part explains that timing gap, the non-cash expenses that widen it, and the working capital where much of the gap sits.

18Why accrual accounting existsWhy does accounting record activity when it happens rather than when cash moves?Written lesson: Why accrual accounting exists
19Profit versus cashWhy can a company report a profit while its cash goes down?Written lesson: Profit is not cash
20DepreciationWhat does depreciation measure, and why is book value not what an asset is worth?Written lesson: Depreciation is not valuation
21The indirect methodHow does the indirect method reconcile net income to operating cash flow?Written lesson: Why the indirect method adds back depreciation and subtracts receivables
22Working capitalWhat is working capital, and how does it tie up or release cash?Planned. Not available yet.

Part 6

Using accounting and finance in decisions

Once the amounts mean what you think they mean, they can support decisions: comparing money across time, choosing how to fund a business, deciding where capital goes, and reading results with ratios.