Ch 1: ILTS Business: Accounting Cycle

About This Chapter

Let us teach you about the accounting cycle. The video lessons and self-assessment quizzes in this chapter can prepare you to answer questions about accounting on the ILTS Business, Marketing and Computer Education content area test.

ILTS Business, Marketing and Computer Education - Accounting Cycle: Chapter Summary

Learn about the purpose and importance of accounting and its relationship to business through this chapter on the accounting cycle. This series of video lessons can be an excellent study guide if you're preparing for the Illinois Licensure Testing System (ILTS) Business, Marketing and Computer Education content area exam. Other topics addressed in this chapter include the purpose and importance of financial and income statements, as well as the following:

  • Components and formatting of balance sheets and statements of cash flows
  • External audits of financial statements
  • The accounting equation
  • Source documents in accounting
  • Using accounts to categorize transactions

ILTS Business, Marketing and Computer Education - Accounting Cycle Objectives

Public school business, marketing and computer education teachers in Illinois need to hold certification through the Illinois State Board of Education. To earn certification, you need to meet education and practicum requirements and pass the ILTS Business, Marketing and Computer Education content area test. This 125 multiple-choice-question exam is offered six times each year. Questions about the accounting cycle can be found in the exam's subarea on accounting practices and principles.

This chapter on the accounting cycle features brief video lessons and self-assessment quizzes. There is no limit to the number of times you can watch these videos or take these quizzes to make sure you're fully prepared for the ILTS Business, Marketing and Computer Education exam.

13 Lessons in Chapter 1: ILTS Business: Accounting Cycle
Test your knowledge with a 30-question chapter practice test
What Is Accounting? - Purpose, Importance & Relationship to Business

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.

The Accounting Cycle: Definition, Steps & Examples

2. 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.

What Are Financial Statements? - Definition, Purpose & Importance

3. 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.

The Balance Sheet: Purpose, Components & Format

4. 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.

What Is an Income Statement? - Purpose, Components & Format

5. 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.

The Statement of Cash Flows: Purpose, Format & Examples

6. 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.

Preparing the Basic Income Statement and Statement of Retained Earnings

7. Preparing the Basic Income Statement and Statement of Retained Earnings

Preparing financial statements can be tricky. In this lesson, we are going to talk about how to prepare the first two basic financial statements: the income statement and the statement of retained earnings.

External Audits of Financial Statements

8. 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.

The Fundamental Principles of Accounting

9. 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.

The Accounting Equation: Definition & Components

10. 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.

Source Documents in Accounting: Definition and Purpose

11. 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.

Using the Accounting Equation: Adding Revenues, Expenses & Dividends

12. Using the Accounting Equation: Adding Revenues, Expenses & Dividends

Accounting is built on a solid foundation called the basic accounting equation. In this lesson, you're going to learn what happens when you add revenue, expenses, and dividends to the basic equation.

What Are Accounts? - Definition and Use to Categorize Transactions

13. What Are Accounts? - Definition and Use to Categorize Transactions

Everything in this world is made up of parts. Accounting is no different. The numerous parts that exist in the accounting world are called accounts. In this lesson, you will learn what accounts are, how they are classified, and what they do.

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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