# Ch 3: Mechanics of the Accounting Cycle

Watch online video lessons to learn about the accounting equation, source documents, ledgers and more. Each lesson is accompanied by a short multiple-choice quiz to help check your understanding of these accounting topics.

## Mechanics of the Accounting Cycle - Chapter Summary and Learning Objectives

In this chapter, we will take a look at the mechanics of the accounting cycle. Emphasis will be put on the accounting equation and the various ways in which it is used. You will learn about how to keep your accounts balanced and keep good records of debits and credits. Lessons will cover a variety of topics that will help you learn to keep accounts managed and ensure that you record everything in the ledger properly. Some of the things you will learn about include:

• The components of the accounting equation
• The purpose of source documents
• Categorizing transactions
• Defining ledgers
• Computing a return on assets
• Using financial statement ratios

VideoObjective
The Accounting Equation: Definition & Components Learn about the components of the accounting equation.
Source Documents in Accounting: Definition and Purpose Study the purpose of source documents.
Using the Accounting Equation: Adding Revenues, Expenses & Dividends Take a look at adding revenues, expenses and dividends.
What Are Accounts? - Definition and Use to Categorize Transactions Find out how to use accounts to categorize transactions.
Ledgers and Chart of Accounts: Definitions and Use Examine ledgers and chart of accounts.
Understanding Debits and Credits in Accounting Explore the role of debits and credits in double-entry accounting.
Recording Business Transactions in Accounting Learn how to record the effects of various transactions, such as selling goods, acquiring assets and collecting cash.
Using the Accounting Equation: Analyzing Business Transactions Study the process of analyzing business transactions using the accounting equation.
Computing and Interpreting Return on Assets Find out how to compute and interpret return on assets.
Journal Entries and Trial Balance in Accounting Take a look at recording transactions in a journal and determining a trial balance.
Financial Statement Ratios: Determining Company Performance Examine how to compute various financial statement ratios, and how to use them to analyze company performance.

Final Exam
Chapter Exam

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