Lesson 1: Introduction

Introduction
•  Do you know the difference between the Balance Sheet
and Income Statement?

•  Have the words ‘Debit’ and ‘Credit’ often haunted you?

•  Do you know what you need to look for in a business

before you invest money or buy their stock?

© KayOne Education, 2015

 Introduction
•  Interestingly, the single biggest skill in life that could make or break your
financial success is not taught in school.

•  Many entrepreneurs run businesses without having a clue on how to read a

balance sheet.

•  Business owners are and continue to remain dangerously ignorant of their

numbers and the tax laws.

© KayOne Education, 2015

 Did you know?

Small business owners do not Small businesses which face a Single biggest reason why
review their monthly balance sheets serious financial literacy gap businesses didn’t succeed

© KayOne Education, 2015

 Who should attend?
This course is meant for those people:

•  Who know very little on accounting and finance and would like to learn more;

•  Who are managers or entrepreneurs and they regularly receive financial information
but are not able to make sense of the numbers; and

•  Who have invested money in businesses or stocks and are not sure how the business
is performing financially.

This course is meant for beginners and not for professionals.

© KayOne Education, 2015

 What is Accounting?
Language of
Business

Actions
Accounting
Account Explanations
Explain

Transactions

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 What is Business?
GAAP

How much
profits
Higherare Is my
Profits
they Business
Accurate
making? $10 $75 doing
Profits
$40 well?

Managerial
Financial Accounting
Accounting
Joe’s Furniture Factory
Tax
Accounting
Tax Laws
Is the
Business
Lower
Profits
paying
External taxes? Govt. Internal
© KayOne Education, 2015
 •  Accounting is the process of providing
explanations.
Summary
•  These explanations are given by recording
Introduction transactions.

•  It is thus called the “language of business”.

•  In any business there are three stakeholders.

•  For each stakeholder the type of information

required is different and hence the accounting is
different.