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Ch 13: Accounting Fundamentals

About This Chapter

Use these video lesson to learn about the basics of accounting. Learn about the accounting cycle, internal controls and preparation of financial statements.

Accounting Fundamentals - Chapter Summary

The lessons in this chapter will help you get an idea of the basic operations of accounting, starting with steps of the accounting cycle, the accounting equation and the Generally Accepted Accounting Principles (GAAP). You will learn about source documents, closing entries and post-closing trial balance.

Other lessons explain the fundamentals of preparing financial statements and auditing those statements. You'll also get a look at commonly used accounting software. By the time you've finished watching these lessons, you should have the information to:

  • Apply the accounting equation in business transactions
  • Analyze accounting documents
  • Explain how accrual and cash-based accounting differ
  • Interpret financial reports
  • Discuss ethical accounting practices
  • Recognize the steps in the closing process

You'll enjoy learning about the fundamentals of accounting with our brief, engaging video lessons. These lessons, led by experts in the field, include written transcripts with key terms and concepts highlighted. At the end of the lessons are quizzes that allow you to check your knowledge, and embedded video tags let you easily return to the lesson to review areas where you need help.

13 Lessons in Chapter 13: Accounting Fundamentals
Test your knowledge with a 30-question chapter practice test
Accounting Cycle: Definition, Steps & Process

1. 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.

The Accounting Equation: Definition & Components

2. The Accounting Equation: Definition & Components

There are a few basic building blocks that form the foundation of accounting. One of those is the accounting equation. In this lesson, you will learn what makes up the accounting equation, its purpose, and how it works.

Using the Accounting Equation: Analyzing Business Transactions

3. 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.

What Is GAAP? - The Generally Accepted Accounting Principles

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.

The Differences Between Accrual & Cash-Basis Accounting

5. The Differences Between Accrual & Cash-Basis Accounting

There are two accounting methods that companies can choose from when deciding how they want their books done. They are cash basis and accrual basis. In this lesson, you will learn the differences between the two.

Internal Controls in Accounting: Definition, Types & Examples

6. Internal Controls in Accounting: Definition, Types & Examples

Rules and regulations are a part of everything we do. In this lesson, you will learn about internal controls in accounting. You will learn what they are, why they are important and see examples.

Source Documents in Accounting: Definition and Purpose

7. Source Documents in Accounting: Definition and Purpose

Do you know what role source documents play in accounting? If not, don't worry; by the end of this lesson, you will. You will also learn the definition of source documents and see some common examples of source documents.

Closing Entries: Process, Major Steps, Purpose & Objectives

8. Closing Entries: Process, Major Steps, Purpose & Objectives

The accounting cycle is a multi-step process. In this lesson, you will learn about part of that process: making closing entries. You will learn what closing entries are, what accounts are affected, and how they are made.

Computerized Accounting Software: Advantages & Disadvantages

9. Computerized Accounting Software: Advantages & Disadvantages

With business as complex as it is today, adopting computerized accounting software seems like the right choice. Even the most sophisticated computer programs have advantages and disadvantages. We will explore these in this lesson.

Post-Closing Trial Balance: Preparation & Purpose

10. Post-Closing Trial Balance: Preparation & Purpose

The last step in the accounting process is to create the post-closing trial balance. In this lesson, you will learn what the post-closing trial balance is, why it's important, and what accounts appear on it.

What Are Financial Statements? - Definition, Purpose & Importance

11. 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.

Preparing Financial Statements

12. Preparing Financial Statements

Financial statements are the most sought after reports in the financial industry. In this lesson, you will learn how to prepare them using information found on the adjusted trial balance.

External Audits of Financial Statements

13. External Audits of Financial Statements

Financial statements are one of the most heavily relied upon group of reports in the business world, and they must be accurate and reliable. In this lesson, you'll learn about financial statement audits, who performs them, and why they are important.

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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