About This Chapter
Business Accounting Overview - Chapter Summary
Given the significance of finances in business and commerce, it's no surprise that accounting is one of the most essential subjects needed when studying business as a whole. If you would like to learn about business accounting, watch the video lessons included in this chapter. Each lesson will provide you with a comprehensive overview of a different topic relevant to business accounting.
Our expert lesson instructors break down some of the fundamental principles and issues relevant to accounting in business, as well as the different types of accounting and their defining characteristics. These lessons will go over topics such as:
- The purpose and importance of accounting
- The fundamental principles of accounting
- The users and uses of accounting
- Disciplines in accounting
- The accounting cycle
- The differences and similarities of accounting and bookkeeping
- Accrual vs. Cash-basis accounting
- The definition, purpose and importance of financial statements
- Preparation of balance sheets
- Components of merchandise inventory
Once you complete a lesson, you can answer the questions found in that lesson's practice quiz. You can also take the final exam to test your understanding of the subject as a whole once you have completed the entire chapter. Be sure that you use your personal Dashboard to keep track of your learning progress as you complete each lesson.
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. 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.
3. 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.
4. 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.
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. 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.
7. 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.
8. 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.
9. 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.
10. 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.
11. 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.
12. How to Prepare the Basic Balance Sheet and Statement of Cash Flows
There are four reports that make up the financial statements. In this lesson, we will talk about how to create the balance sheet and the statement of cash flows. You will learn how to format the reports, as well as what information is reported on them.
13. 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.
14. Items that Make Up Merchandise Inventory
In order to operate, merchandising companies must carry inventory. What exactly makes up merchandise inventory? In this lesson, you will not only learn the answer to that question, but also several other important factors that relate to merchandise inventory.
15. 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.
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Other chapters within the NES Business Education (309): Practice & Study Guide course
- Organizational Management in Business
- Human Resource Management in Business
- Business Law & Ethics
- Government Regulations for Consumer Protection
- Taxation for Corporations
- Personal Finance & Consumer Economics
- Consumer Credit
- Personal Insurance Coverage
- Computation & Quantitative Analysis in Business
- Microeconomics Concepts & Laws
- Microeconomics Fundamentals for Business
- Macroeconomics Principles for Business
- International Business & Trade
- Principles of Marketing & Market Research
- Fundamentals of E-commerce
- Entrepreneurship & Business Plans
- Business Communication Fundamentals
- Information Systems in Business
- Business Software
- Career Development in Business
- NES Business Education Flashcards