About This Chapter
Accounting Basics: Chapter Summary and Learning Objectives
Accounting refers to the systematic recording and analysis of financial data within a business or organization. In this chapter, our instructor explains the basics of accounting in terms of business, technology, bookkeeping, and much more. Students will be exposed to different accounting disciplines, the generally accepted principles of accounting, and the common practices of professional accountants. The importance of record keeping and the creation of different types of financial statements will also be a major focus of this chapter. In addition, students will learn a variety of vocabulary terms associated with the fundamental procedures and practices of professional accounting. Once the chapter has been completed, students should be able to:
- Define accounting and describe its relationship to business
- Identify and describe the disciplines and principles of accounting
- Identify and explain the purpose of several types of financial statements
- Compute financial statement ratios and perpetual inventory
- Describe the accounting cycle
- Explain the difference between accounting and bookkeeping
|What is Accounting? - Purpose, Importance, and Relationship to Business||Discuss what accounting is and its place in business operations.|
|External and Internal Users and Uses of Accounting||Explore who uses accounting information for internal and external uses.|
|What is GAAP? - The Generally Accepted Accounting Principles||Explain the history and parts of Generally Accepted Accounting Principles (GAAP).|
|Technology in Accounting: The Growing Role of Technology in Accounting||Describe how technology has impacted the field of accounting.|
|What are Financial Statements? - Definition, Purpose & Importance||Understand the different types of financial statements and what they are used for.|
|The Accounting Cycle: Definition, Steps & Examples||Study the nine steps of the accounting cycle.|
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. 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. 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.
5. 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.
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.
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