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Ch 4: Accounting & Bookkeeping

About This Chapter

Strengthen your understanding of accounting and bookkeeping with this overview that includes topics on the accounting cycle, basic accounting terms, and cost concepts in economics. These brief lessons are a helpful resource for individuals preparing for an exam or catching up on missed class time.

Accounting & Bookkeeping - Chapter Summary

The lessons in this chapter provide an overview of accounting and bookkeeping. You can review the general journal, final accounts of a sole trader, and cost concepts in economics. You can also gain an understanding of accounting for non-profit organizations. After completing the chapter, you should be prepared to:

  • Discuss the similarities between accounting and bookkeeping
  • List the steps of the accounting cycle
  • Use basic accounting terms and phrases
  • Explain the purpose of ledgers and the chart of accounts
  • Comprehend accounting principles
  • Apply knowledge of journal entries and trial balance in accounting
  • Detail the use of a cash receipts journal and a cash payments journal
  • Explain the difference between revenue expenditures and capital expenditures
  • Make comparisons between forecasting and budgeting

Each lesson comes with a brief quiz to determine how much of the content you can remember. You can study all of the lessons or just focus on specific topics. Make the most of this resource by printing the quiz in worksheet form to study offline.

13 Lessons in Chapter 4: Accounting & Bookkeeping
Test your knowledge with a 30-question chapter practice test
Accounting vs Bookkeeping: Differences and Similarities

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.

Accounting Cycle: Definition, Steps & Process

2. Accounting Cycle: Definition, Steps & Process

Accounting isn't just about working with numbers. It is about following guidelines to get the job done. In this lesson, you will learn what the accounting cycle is and the steps to complete it.

Basic Accounting Terms & Phrases

3. 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.

The Fundamental Principles of Accounting

4. 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.

What Is a General Journal in Accounting? - Definition, Format & Examples

5. What Is a General Journal in Accounting? - Definition, Format & Examples

The general journal is usually the first of a company's accounting records that we learn about and use, but it can also be one of the most misunderstood. It doesn't have to be difficult, though, as we'll show here.

Ledgers and Chart of Accounts: Definitions and Use

6. Ledgers and Chart of Accounts: Definitions and Use

There are several key concepts that are important to learn when it comes to accounting. In this lesson, you will learn about the ledger and the chart of accounts.

Journal Entries and Trial Balance in Accounting

7. Journal Entries and Trial Balance in Accounting

There are several concepts that make up an accounting cycle. In this lesson, you will learn about two of those - journal entries and the trial balance.

Cash Receipts Journal: Definition & Examples

8. Cash Receipts Journal: Definition & Examples

This lesson explains how a cash receipts journal is used by a business, what types of transactions are posted in a cash receipts journal, and how to keep those transactions balanced.

Cash Payments Journal: Definition & Example

9. Cash Payments Journal: Definition & Example

In this lesson, we'll learn about cash payments journals. We'll explain how a company might use one and use an example to learn how to make entries. The lesson will be concluded with a summary and a quiz.

Comparing Revenue Expenditures & Capital Expenditures

10. Comparing Revenue Expenditures & Capital Expenditures

Accountants view revenue expenditures and capital expenditures very differently. But how do you tell the difference? This lesson explains how to categorize the two types of expenditures for accounting purposes.

Final Accounts of a Sole Trader

11. Final Accounts of a Sole Trader

This lesson will guide you through the creation of statements of account for a sole trader/proprietor. We will walk through the creation of a trading account, profit and loss account, and balance sheet.

Comparing Budgeting & Forecasting

12. Comparing Budgeting & Forecasting

Budgeting and forecasting play important roles in planning and decision making for managers. While both are a way to anticipate important financial metrics, in this lesson we'll compare them to identify some differences.

Accounting for Nonprofit Organizations

13. Accounting for Nonprofit Organizations

This lesson discusses the basic financial aspects of a nonprofit organization. It focuses specifically on payment accounts, expenditure accounts, and the balance sheet of a nonprofit and how a nonprofit uses each of these tools in its daily operations.

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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