About This Chapter
Basics of Accounting - Chapter Summary
This chapter's lessons explore common accounting terms and phrases and look at the fundamental principles of accounting. Your employees can learn about the following:
- Definition and purpose of accounting
- Differences between bookkeeping and accounting
- Various accounting disciplines
- The seven major accounting principles
- Basic terms and phrases used in accounting
These lessons offer general information on what accounting involves, important principles and common terms. Used in a group corporate training session, these lessons and quizzes can promote discussion among your employees. At the end of each lesson is a quiz that lets you assess what they've learned.
How It Helps
- Educates employees:These lessons provide a solid foundational knowledge of what accounting is and its purpose. Understanding these points can help your employees see the relationship between accounting and other aspects of the business.
- Emphasizes conformity: Defining basic accounting principles and terms ensures that all employees have the same information, saving time that would be spent in explanations.
- Promotes cross-training:By learning the fundamental terms and principles of accounting, employees without accounting training will be more equipped to understand the requirements of the accounting department and see how they can better collaborate.
Watching the lessons in this chapter should equip your employees to:
- Explain the role of accounting in business
- Describe the differences between accounting and bookkeeping
- Identify several disciplines of accounting
- Understand the seven fundamental principles of accounting
- Define and use common accounting terms
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. 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.
3. 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.
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.
5. 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.
6. Practical Application: Accounting Disciplines Infographic
Rather than a singular definition, the term accounting actually refers to several disciplines that are highly applicable in specific situations. Applying the right accounting discipline is essential to the creation of accurate records.
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