About This Chapter
Small Business Accounting - Chapter Summary
Study this chapter to learn about the role of accounting in a small business context. As you begin the chapter, you'll learn about the difference between accounting and book keeping, as well as important accounting principles. You'll then evaluate the role of ethics in accounting and learn the steps of the accounting cycle. Our instructors also go into detail on various accounting systems, accounting users, transactional analysis and much more.
Your progress throughout the chapter is tracked on your personal Dashboard, and you can take the included lesson quizzes to see how well you understand the material. These lessons can be studied at any time that fits your schedule. After completing the chapter, you should be able to:
- Differentiate between bookkeeping and accounting
- Identify types of accounting users and how different accounting information is used
- Explain the generally accepted accounting principles (GAAP)
- Assess the role and importance of ethics in accounting
- Evaluate the benefits of various types of accounting systems and software
- Outline the steps of the accounting cycle
- Analyze business transactions in relation to the accounting equation
- Break down the difference between capitalizing and expensing purchases
1. Accounting vs Bookkeeping: Differences and Similarities
The terms accounting and bookkeeping are common place in the business world. However, there's often confusion about the difference between these two terms. In this lesson, you'll learn the difference between accounting and bookkeeping.
2. External and Internal Users and Uses of Accounting
Accounting has many uses. In this lesson, you will learn not only who accounting users are but also what types of accounting information is used. You will also learn the uses of that accounting information.
3. What Is GAAP? - The Generally Accepted Accounting Principles
Rules and regulations are a part of life for everyone, including those in the accounting industry. In this lesson, you will learn about GAAP standards, what they mean to accounting, and who establishes them.
4. The Importance of Ethics in Accounting
Ethics - are they really important in accounting? In this lesson, we will discuss what ethics are and what role they play in accounting; we'll also review a case that is deeply rooted in ethics. In the end, we will decide whether or not ethics are important in accounting.
5. Accounting Systems & Software
Read this lesson to learn about the different types of accounting systems you can choose from. Learn what the benefits of each type are as well as some software examples of each type of accounting system.
6. The Accounting Cycle: Definition, Steps & Examples
Accounting is essential to the proper and efficient functioning of a business. In fact, it is often referred to as the 'language of business.' In this lesson, you'll learn about the steps in the accounting cycle. A short quiz follows.
7. Using the Accounting Equation: Analyzing Business Transactions
Transaction analysis can be a tricky task. In this lesson, you will learn what transaction analysis is, how to analyze a transaction, and how it is related to the accounting equation.
8. Comparing the Effects of Capitalizing & Expensing
What does it mean to capitalize a purchase instead of expensing it? And how do you know which one to do? Watch this lesson to find out more about capitalization and the ways to know whether to capitalize or expense.
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Other chapters within the Financial Accounting: Help and Review course
- Introduction to Accounting: Help and Review
- Financial Statements in Accounting: Help and Review
- Mechanics of the Accounting Cycle: Help and Review
- Project Evaluation & Analysis
- Preparing Financial Statements: Help and Review
- Internal Controls in Accounting: Help and Review
- Merchandising Operations and Inventory in Accounting: Help and Review
- Current and Long-Term Liabilities in Accounting: Help and Review
- Adjusting Accounts & Preparing Financial Statements: Help and Review
- Taxation of Business Entities
- Accounting Changes & Errors
- Classifying Costs in Accounting
- Cost Accounting Methods
- Cash Flow Statements & Disclosures
- Asset & Inventory Management
- Small Business Financing
- Financial Reporting