Welcome to Introduction to Accounting Concepts
Your first step towards becoming a confident and capable credit analyst.
In this module, you will learn the fundamental accounting concepts and principles every credit analyst must understand. These concepts are the building blocks for interpreting financial statements, evaluating client’s performance, and identifying potential risks.
As a credit analyst, your job is to assess whether a client can meet their financial obligations including interest, fees and loan repayments. To make sound credit recommendations, you need a strong grasp of how financial information is recorded, structured, and what it reveals about a client’s creditworthiness.
By the end of this module, you will have a clear understanding of how accounting underpins financial analysis, setting the foundation for more advanced credit analysis modules ahead.
What to expect in this module
You will work through real-world commercial lending scenarios that will help strengthen your understanding of Accounting Concepts and Principles, and build confidence in applying them to credit analysis.
Through practical examples, hands-on exercises, and credit focused case studies, you will learn to:
- Understand key accounting principles and their role in financial reporting.
- Learn how transactions flow through the accounting system.
- Recognise how accounting standards (like AASB and IFRS) influence financial reporting.
- Apply accounting insights to structure appropriate lending solutions.
How will you learn
At the end of this module, you will complete a set of final questions and a practical exercise that will test your ability to:
- Understand the importance of accounting concepts and principles within financial statements.
- Identify financial risks, inconsistencies, and red flags.
- Apply the accounting knowledge learned to support sound, responsible, informed credit recommendations.
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Module Content
- Mentor feedback is provided only after all Review Questions for the entire module have been completed, not after individual topics. Feedback will be delivered through the Review Questions Summary.
- You may update your Review Question responses at any time. If you choose to reattempt the Review Questions for a specific topic, your previous responses will not be visible and you will be required to answer all questions for that topic again.
- If you prefer not to reattempt individual topics, you can instead update your responses via the Review Questions Summary.
- From there, you can download all of your responses, review and edit them as needed, and re upload the document for mentor review.
- Once the mentors are satisfied with your responses across all Review Questions in the module, you will be progressed and granted access to the Final Questions and Exercise(s).
Need technical support?
If you run into any issues on the website, get in touch with our technical team at @creditanalystacademy.com
- Mentor feedback is provided only after all Review Questions for the entire module have been completed, not after individual topics. Feedback will be delivered through the Review Questions Summary.
- You may update your Review Question responses at any time. If you choose to reattempt the Review Questions for a specific topic, your previous responses will not be visible and you will be required to answer all questions for that topic again.
- If you prefer not to reattempt individual topics, you can instead update your responses via the Review Questions Summary.
- From there, you can download all of your responses, review and edit them as needed, and re upload the document for mentor review.
- Once the mentors are satisfied with your responses across all Review Questions in the module, you will be progressed and granted access to the Final Questions and Exercise(s).
Need technical support?
If you run into any issues on the website, get in touch with our technical team at @creditanalystacademy.com
- Mentor feedback is provided only after all Review Questions for the entire module have been completed, not after individual topics. Feedback will be delivered through the Review Questions Summary.
- You may update your Review Question responses at any time. If you choose to reattempt the Review Questions for a specific topic, your previous responses will not be visible and you will be required to answer all questions for that topic again.
- If you prefer not to reattempt individual topics, you can instead update your responses via the Review Questions Summary.
- From there, you can download all of your responses, review and edit them as needed, and re upload the document for mentor review.
- Once the mentors are satisfied with your responses across all Review Questions in the module, you will be progressed and granted access to the Final Questions and Exercise(s).
Need technical support?
If you run into any issues on the website, get in touch with our technical team at @creditanalystacademy.com
- Mentor feedback is provided only after all Review Questions for the entire module have been completed, not after individual topics. Feedback will be delivered through the Review Questions Summary.
- You may update your Review Question responses at any time. If you choose to reattempt the Review Questions for a specific topic, your previous responses will not be visible and you will be required to answer all questions for that topic again.
- If you prefer not to reattempt individual topics, you can instead update your responses via the Review Questions Summary.
- From there, you can download all of your responses, review and edit them as needed, and re upload the document for mentor review.
- Once the mentors are satisfied with your responses across all Review Questions in the module, you will be progressed and granted access to the Final Questions and Exercise(s).
Need technical support?
If you run into any issues on the website, get in touch with our technical team at @creditanalystacademy.com
- Mentor feedback is provided only after all Review Questions for the entire module have been completed, not after individual topics. Feedback will be delivered through the Review Questions Summary.
- You may update your Review Question responses at any time. If you choose to reattempt the Review Questions for a specific topic, your previous responses will not be visible and you will be required to answer all questions for that topic again.
- If you prefer not to reattempt individual topics, you can instead update your responses via the Review Questions Summary.
- From there, you can download all of your responses, review and edit them as needed, and re upload the document for mentor review.
- Once the mentors are satisfied with your responses across all Review Questions in the module, you will be progressed and granted access to the Final Questions and Exercise(s).
Need technical support?
If you run into any issues on the website, get in touch with our technical team at @creditanalystacademy.com
- Mentor feedback is provided only after all Review Questions for the entire module have been completed, not after individual topics. Feedback will be delivered through the Review Questions Summary.
- You may update your Review Question responses at any time. If you choose to reattempt the Review Questions for a specific topic, your previous responses will not be visible and you will be required to answer all questions for that topic again.
- If you prefer not to reattempt individual topics, you can instead update your responses via the Review Questions Summary.
- From there, you can download all of your responses, review and edit them as needed, and re upload the document for mentor review.
- Once the mentors are satisfied with your responses across all Review Questions in the module, you will be progressed and granted access to the Final Questions and Exercise(s).
Need technical support?
If you run into any issues on the website, get in touch with our technical team at @creditanalystacademy.com
- Mentor feedback is provided only after all Review Questions for the entire module have been completed, not after individual topics. Feedback will be delivered through the Review Questions Summary.
- You may update your Review Question responses at any time. If you choose to reattempt the Review Questions for a specific topic, your previous responses will not be visible and you will be required to answer all questions for that topic again.
- If you prefer not to reattempt individual topics, you can instead update your responses via the Review Questions Summary.
- From there, you can download all of your responses, review and edit them as needed, and re upload the document for mentor review.
- Once the mentors are satisfied with your responses across all Review Questions in the module, you will be progressed and granted access to the Final Questions and Exercise(s).
Need technical support?
If you run into any issues on the website, get in touch with our technical team at @creditanalystacademy.com
- Mentor feedback is provided only after all Review Questions for the entire module have been completed, not after individual topics. Feedback will be delivered through the Review Questions Summary.
- You may update your Review Question responses at any time. If you choose to reattempt the Review Questions for a specific topic, your previous responses will not be visible and you will be required to answer all questions for that topic again.
- If you prefer not to reattempt individual topics, you can instead update your responses via the Review Questions Summary.
- From there, you can download all of your responses, review and edit them as needed, and re upload the document for mentor review.
- Once the mentors are satisfied with your responses across all Review Questions in the module, you will be progressed and granted access to the Final Questions and Exercise(s).
Need technical support?
If you run into any issues on the website, get in touch with our technical team at @creditanalystacademy.com
- Mentor feedback is provided only after all Review Questions for the entire module have been completed, not after individual topics. Feedback will be delivered through the Review Questions Summary.
- You may update your Review Question responses at any time. If you choose to reattempt the Review Questions for a specific topic, your previous responses will not be visible and you will be required to answer all questions for that topic again.
- If you prefer not to reattempt individual topics, you can instead update your responses via the Review Questions Summary.
- From there, you can download all of your responses, review and edit them as needed, and re upload the document for mentor review.
- Once the mentors are satisfied with your responses across all Review Questions in the module, you will be progressed and granted access to the Final Questions and Exercise(s).
Need technical support?
If you run into any issues on the website, get in touch with our technical team at @creditanalystacademy.com
- Mentor feedback is provided only after all Review Questions for the entire module have been completed, not after individual topics. Feedback will be delivered through the Review Questions Summary.
- You may update your Review Question responses at any time. If you choose to reattempt the Review Questions for a specific topic, your previous responses will not be visible and you will be required to answer all questions for that topic again.
- If you prefer not to reattempt individual topics, you can instead update your responses via the Review Questions Summary.
- From there, you can download all of your responses, review and edit them as needed, and re upload the document for mentor review.
- Once the mentors are satisfied with your responses across all Review Questions in the module, you will be progressed and granted access to the Final Questions and Exercise(s).
Need technical support?
If you run into any issues on the website, get in touch with our technical team at @creditanalystacademy.com
Learning Objectives
By the end of this module, you will be able to:
Understand Core Accounting Principles
Learn key accounting such as accounting equation, double-entry system.
Recognise how standards such as AASB and IFRS guide financial reporting.
Use these accounting principles to assess a business’s profitability, liquidity, and solvency and overall creditworthiness.
Understand Financial Reports and Business Structures
Distinguish between legal entities, accounting entities, and reporting periods.
Understand how different reporting frameworks can affect your financial comparisons and analytical reliability.
Evaluate Ownership Type and Financial Implications
Compare the lending risks and benefits of structures like sole traders, partnerships, trusts, and companies.
Assess how ownership structures influence liability, loan repayments capacity, and security availability.
Apply Accounting Standards to Financial Statements
Apply key standards such as AASB 16 (Leases) and IFRS 15 (Revenue) to assess lease liabilities, revenue risks, and off-balance sheet exposures.
Interpret financial statements and notes to the accounts to identify covenant issues and potential red flags.
Use Accounting Insights to Make Better Lending Decisions
Use accounting insights to recommend appropriate financial covenants, loan structures, and risk mitigants.
Make informed recommendations that support sound credit decisions and promote portfolio health.
