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Fundamentals of accounting
Fundamentals of accounting

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Week 2: Essential numerical skills for accounting

Introduction

Expertise in mathematics is not required for you to succeed as an accountant. The core skill needed is the confidence and ability to be able to add, subtract, multiply, divide as well as use decimals, fractions and percentages. The learning material this week thus covers the basic numeracy skills from multiplication and division, through to decimals, percentages, fractions and negative numbers. It is expected that you will use a calculator for most of the activities but you are also encouraged to use mental calculations.

An important skill in accounting is also the ability to manipulate simple equations. This week you will also be introduced to the accounting equation which is the foundation of the double-entry system of accounting. Being able to understand and express the accounting equation in different forms is crucial to understanding and preparing the balance sheet (the principal financial statement) and the income statement.