About This Chapter
Basic Accounting Concepts - Chapter Summary
This chapter's corporate training lessons explore basic concepts and principles of accounting, such as the accounting cycle and the accounting equation, and explain when and why they're used. Your employees can learn about:
- The seven fundamental accounting principles
- How to record business transactions
- Ledgers and charts of accounts
- Journal entries and trial balance
- Components of the accounting equation
Your employees can watch these brief lessons on their own from a computer or mobile device or as part of a group training session. Group training is especially beneficial because it promotes discussion about the concepts being discussed. Employees can assess their knowledge through the quizzes and exams that accompany the lessons.
How It Helps
- Ensures conformity: By explaining why and how business transactions are recorded, these lessons show your employees various methods of record keeping and help them understand why recording transactions are vital.
- Teaches the basics: Employees with no accounting background can get information on the fundamental principles of accounting, which can help them better understand the company's operations.
- Promotes efficiency: Your employees will get an idea of the basics of accounting, such as the accounting equation and the accounting cycle, and find out about the steps involved. Having knowledge of these processes may allow them to work more independently.
These video lessons will prepare your employees to:
- Describe the seven fundamental principles of accounting
- Record business transactions
- Use ledgers and charts of accounts
- Relate journal entries and trial balance to the accounting cycle
- Understand the accounting equation
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.
2. Recording Business Transactions in Accounting
Recording a transaction is the first step in the accounting cycle. In this lesson, you will learn why transactions are recorded, where they are recorded, and how they are recorded.
3. 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.
4. 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.
5. 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.
6. Practical Application: Basic Accounting Concepts Infographic
All organizations have an obligation to provide all stakeholders, including shareholders, with accurate financial information. The basic concepts of accounting are foundation upon which accurate financial reports are built.
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