Ch 7: Accounting Basics for Business

About This Chapter

Use our video and text lessons to develop a deeper understanding of the basic practices and processes of accounting in business environments. You will learn basic terms, functions and concepts pertaining to this field.

Accounting Basics for Business - Chapter Summary

This chapter conveys various accounting responsibilities and principles as explained by professional instructors. You will go over different accounting reports and what information they contain. In addition, you'll review key accounting and business terms.

You can also review how to apply specific formulas, make calculations and use different accounting tools. After watching these lessons, you should be able to:

  • Define basic accounting terms, debt ratio and revenue
  • Identify major accounting principles
  • Name different types of accounting forms and business expenses
  • Explain what liabilities are
  • Discuss return on investment and return on assets
  • Calculate the return on equity
  • Use performance measurement tools
  • Apply formulas for estimating, projecting and performance

You can choose to watch and re-watch the videos as needed or you can print the text lesson transcript and use it as a reference tool. The Dashboard feature allows you to keep track of your lessons and quizzes. The self-assessment quizzes are a great way to measure what you have learned and identify any topics you might need to continue studying.

11 Lessons in Chapter 7: Accounting Basics for Business
Test your knowledge with a 30-question chapter practice test
The Fundamental Principles of Accounting

1. The Fundamental Principles of Accounting

Accounting is an art, but just as with any form of art, you need the right tools to make your masterpiece. For accounting, those tools are the seven major accounting principles. In this lesson, you will learn what those principles are and what they are used for.

Basic Accounting Terms & Phrases

2. Basic Accounting Terms & Phrases

Having a basic understanding of fundamental accounting terms is a good idea for everyone. In this lesson, we'll learn some of the terminology and concepts used in basic accounting.

Common Accounting Forms: Function & Purpose

3. Common Accounting Forms: Function & Purpose

In this lesson, we'll discuss accounting forms to document the purchasing and selling process. You'll also learn about internal controls and state and federal tax on earnings.

What Is Revenue? - Definition & Concept

4. What Is Revenue? - Definition & Concept

Revenue is essential for nearly every type of business. In this lesson, you'll learn what revenue is, what it's not, and how it fits into the overall income of a business. You'll also have a chance to reinforce your knowledge with a short quiz.

Categories of Business Expenses

5. Categories of Business Expenses

In this lesson, we'll define business expenses and learn the major categories they're comprised of. We'll also explain the difference between rent and mortgage payments, and what type of wages are considered expenses.

Liabilities in Accounting: Definition & Examples

6. Liabilities in Accounting: Definition & Examples

Every business has liabilities. In this lesson, you'll learn what liabilities are and how they fit into the overall financial picture of a business, and you'll be provided some examples.

Return on Investment: Definition, Formula & Example

7. Return on Investment: Definition, Formula & Example

Return on investment is a crucial analytical tool used by both businesses and investors. In this lesson, you'll learn the basic formula, discover a variant used for shareholders, and be provided examples.

Return on Assets: Definition, Formula & Example

8. Return on Assets: Definition, Formula & Example

In this lesson, we'll discuss return on assets (ROA). You'll learn to calculate ROA using net income and total assets. You'll also discover how to provide an accurate analysis of the calculation.

How to Calculate the Return on Equity: Definition, Formula & Example

9. How to Calculate the Return on Equity: Definition, Formula & Example

After watching this video lesson, you will learn how the return on equity helps you as a potential investor determine whether a certain company is worth investing in or not. You'll also learn how companies perform this calculation.

What Is Debt Ratio? - Calculation & Overview

10. What Is Debt Ratio? - Calculation & Overview

In this lesson, you'll learn what a debt ratio is in accounting. You will also learn how to calculate a company's debt ratio and why it is important to financers and investors.

How to Measure Performance in Business: Tools & Examples

11. How to Measure Performance in Business: Tools & Examples

How can you measure performance in your business, and why would you want to do so? In this lesson we'll discuss common tools for performance measurement, why you'd use them, and what to do with the results.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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