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Topics from your homework you'll be able to complete:
- Importance and purpose of accounting
- Steps in the accounting cycle
- Accounting disciplines
- Role of technology in accounting
- Balance sheets
- Cash flow statements
- Comparison of accounting and bookkeeping
- External and internal use of accounting
- Financial statements and ratios
- Generally accepted accounting principles (GAAP)
- Income statements
- Inventory valuation methods
1. What Is Accounting? - Purpose, Importance & Relationship to Business
Just as French is considered the language of love, accounting is considered the language of business. In this lesson, you will learn exactly what accounting is. You will also learn the purpose of accounting, why it is important, and how it relates to the business world.
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. Accounting Disciplines: Descriptions and Definitions
Most people know that accountants work with numbers, but there's more to accounting than bookkeeping. In this lesson, you'll learn about various accounting disciplines including managerial, financial, tax, government and non-profit accounting.
4. 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.
5. Technology in Accounting: The Growing Role of Technology in Accounting
Change and technology go hand in hand, especially in the accounting industry. In this lesson, we will take a walk back in time and discuss some of the technological advances in accounting through the years. We will also discuss how these changes have affected the accounting process.
6. What Are Financial Statements? - Definition, Purpose & Importance
Financial statements are big players in the world of accounting. In this lesson, you will be introduced to each of the financial statements. You will also learn what their role is in the accounting industry, who they are important to and why they are important.
7. The Balance Sheet: Purpose, Components & Format
There are four financial reports that make up a group known as the financial statements. We will take a walk with one of those reports - the balance sheet - and learn what it is, what items are included on it and what its role in the group is.
8. What Is an Income Statement? - Purpose, Components & Format
There are four financial reports that are created during the accounting cycle. These four reports make up what is commonly known as the financial statements. In this lesson, we will focus our attention on the income statement. We will learn what the income statement is, what its role in the financial statements is, and why it is important in accounting.
9. The Statement of Cash Flows: Purpose, Format & Examples
There are four financial reports that are required in financial statements. In this lesson, you will learn about the fourth and final report - the statement of cash flows. You'll learn what the makeup of the statement is, its purpose, and why it is important to users of the financial statements.
10. Financial Statement Ratios: Determining Company Performance
Have you ever wondered why the financial statements are so important to a company? In this lesson, you will learn about several financial statement ratios and how they help determine company performance.
11. Inventory Valuation Methods: Specific Identification, FIFO, LIFO & Weighted Average
This lesson introduces you to the cost flow assumption methods of specific identification: FIFO, LIFO, and weighted average. You will also learn how to compute inventory in a perpetual system using the methods of FIFO, LIFO, and weighted average.
12. 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.
13. 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.
14. Accounting Records: Definition & Types
Everyone likes to know how they are doing financially. In this lesson, you will learn about accounting records, tools that help businesses understand their financial performance.
15. Accumulated Depreciation: Definition & Formula
Assets such as equipment and vehicles lose value over time, but how do you show that on your accounting books? This lesson will demonstrate how to account for depreciation over the course of multiple years and calculate an asset's current value.
16. Adjusting Entries: Definition, Types & Examples
Adjusting entries are a very important part of the accounting cycle because they ensure that you are reporting the company's financial situation accurately. In this lesson, you will learn which accounts need adjusting and how those adjustments are made.
17. Collateral: Definition, Types & Examples
This lesson will define collateral from the viewpoint of both an individual and a business owner. Also in this lesson, various types of collateral will be explained, and examples of collateral will be explored.
18. Conservatism in Accounting: Definition & Principle
One of the primary principles in accounting is conservatism. This principle is intended to both provide more reliable financial statements and protect the accountant from legal liability. We'll examine what this principle is and show it in action.
19. Contra Account: Definition & Examples
General ledger accounts will have a debit or credit normal balance, and contra accounts that offset the parent account. This lesson will explain what a contra account is and how it works to accurately show the value of a firm's financial statements. It will also provide examples to illustrate the impact.
20. Contribution Margin: Definition & Formula
This lesson explains what a contribution margin is, how is it calculated, and how it affects the overall financial status of a business. An example is offered to help illustrate the importance of contribution margins.
21. Cost Behavior: Definition & Pattern Analysis
In this lesson, we will look at cost behavior. We will also explain the three types of cost that a business needs to analyze when understanding cost behavior. The lesson will then conclude with a summary and a quiz.
22. Cost Driver in Accounting: Definition, Analysis & Example
In this lesson, we will learn about cost drivers. We will define the term, look at examples, and learn the steps a company might take when analyzing a cost driver. The lesson will conclude with a summary and a quiz.
23. Cost Object: Definition & Examples
In this lesson we will explore cost objects. We will define the term and look at some of the different types of cost objects. The lesson will then be concluded with a summary and a quiz.
24. Cost Plus Pricing: Definition, Method, Formula & Examples
How do you determine the retail sales price of your product or service? There are many strategies you can apply to set a price. This lesson will introduce you to the cost-plus pricing strategy.
25. Cost Variance: Definition, Formula & Analysis
Every business should be reviewing any differences between planned and actual costs. Those differences are called cost variances. This lesson will show you how to determine the source of different types of variances.
26. Current Ratio in Accounting: Definition, Formula & Analysis
Learn what a current ratio is and why it is so important to understand when evaluating the health and future of a company. See how the ratio is calculated and what components go into this important figure.
27. Direct Method in Accounting: Definition & Example
In accounting, we need to report our net cash. This is cash we actually have free to use. The direct method is a means to prepare our statements in regards to cash. This lesson will define the method and provide an example.
28. Going Concern Principle in Accounting: Definition & Example
One of the underlying principles in accounting is that the company, or at least the portion of the company reflected in the financial statements, is a going concern. Here we explore what a going concern is and what it means for accounting.
29. High-Low Method Accounting: Formula & Examples
The high-low method is one type of cost-volume analysis used in accounting. This lesson describes how it is used and explains the formula for quickly computing an estimated cost per unit.
30. Historical Cost Accounting: Definition, Method & Advantages
In this lesson, you will learn about the concept of historical cost accounting, how it works and what the advantages of using this cost valuation method are.
31. Implicit Costs: Definition & Examples
Not all of the costs a business must consider can be calculated and tracked on a monthly basis. This lesson introduces the concept of implicit costs, including examples and how they differ from explicit costs.
32. Inventory Turnover Ratio: Definition, Formula & Example
This lesson will examine the inventory turnover ratio. There will be a brief discussion of the definition and formula. An example of how to use an inventory turnover ratio will be given.
33. Last In/First Out Method in Accounting: Definition & Examples
Retail companies must manage their inventory effectively. This lesson defines the Last-In/First-Out method, identifies how it affects businesses, and describes scenarios where it may be the most effective way to manage inventory.
34. Manual Accounting System: Definition, Advantages & Disadvantages
An accounting system is an essential part of any business. In this lesson, learn about the advantages and disadvantages of a manual accounting system - one that is maintained by hand.
35. Manufacturing Overhead: Definition, Formula & Examples
In this lesson, we'll define manufacturing overhead, use the given formula to determine manufacturing overhead per unit and cite examples of the specific costs that are used to determine manufacturing overhead.
36. Master Budget in Accounting: Definition, Components & Example
In this lesson, we'll outline the major components of a master budget and look at an example that shows how a company's individual budgets relate to each other and can be used to form a strategic plan for a company.
37. Matching Concept in Accounting: Definition & Example
The matching concept is a founding principle of accounting. In general, it means that expenses are recorded (matched) with the income that is generated from those expenses. This lesson explores further and look at how the concept is applied.
38. Matching Principle in Accounting: Definition & Examples
In accounting, matching has nothing to do with color coordination and everything to do with the timing of revenues and expenses. The matching principle helps to keep the financial statements a useful and fair representation of results.
39. Nominal Interest Rate: Definition & Equation
Understanding interest rates is a vital part of personal and business financial management. In this lesson, you'll learn about the nominal interest rate and how to calculate it from different perspectives. A short quiz follows the lesson.
40. Non-Durable Goods: Definition & Examples
This lesson discusses non-durable goods. Non-durable, or consumable goods, are defined and examples are given. The challenges for businesses selling non-durable goods are also explained.
41. Notes Payable in Accounting: Definition & Examples
Notes payable are debts established by a company through the use of promissory notes. This lesson will provide additional details and examples, including differences from accounts payable.
42. Operating Cycle in Accounting: Definition & Formula
In this lesson, we'll learn about managing the operating cycle, its components, how to calculate it, and how accounting is used to determine the costs associated with your operating cycle.
43. Operating Expenses: Definition, Formula & Examples
This lesson introduces the concept of operating expenses. It explains what operating expenses are and how they are calculated. Examples of operating expenses are included.
44. Operating Lease in Accounting: Definition, Calculation & Example
In this lesson, we will identify the nature of leases, the requirements that must be met to treat a lease as an operating lease, and how to account for an operating lease.
45. Receivables Turnover: Definition, Formula & Example
In this lesson, you'll learn the purpose of the receivables turnover, the formula and which financial statements to use to find the data. We'll also discuss the usefulness in calculating the turnover by the number of days.
46. Restrictive Endorsement: Definition & Example
Have you ever seen an endorsement of: ''For Deposit Only'' on the back of the check? If yes, did you wonder why and what that meant? Today, we will go over what restrictive endorsement is and review some examples.
47. 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.
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