Ch 1: Introduction to Accounting: Help and Review

About This Chapter

The Introduction to Accounting chapter of this College Financial Accounting Help and Review course is the easiest way to master introductory accounting. This chapter uses simple and fun videos that are about five minutes long, plus lesson quizzes and a chapter exam to ensure students learn the essentials of introductory accounting.

Who's it for?

Anyone who needs help learning or mastering college accounting material will benefit from taking this course. You will be able to grasp the subject matter faster, retain critical knowledge longer and earn better grades. You're in the right place if you:

  • Have fallen behind in understanding accounting foundations or working with technology in accounting.
  • Need an efficient way to learn about introductory accounting.
  • Learn best with engaging auditory and visual tools.
  • Struggle with learning disabilities or learning differences, including autism and ADHD.
  • Experience difficulty understanding your teachers.
  • Missed class time and need to catch up.
  • Can't access extra accounting learning resources at school.

How it works:

  • Start at the beginning, or identify the topics that you need help with.
  • Watch and learn from fun videos, reviewing as needed.
  • Refer to the video transcripts to reinforce your learning.
  • Test your understanding of each lesson with short quizzes.
  • Submit questions to one of our instructors for personalized support if you need extra help.
  • Verify you're ready by completing the Introduction to Accounting chapter exam.

Why it works:

  • Study Efficiently: Skip what you know, review what you don't.
  • Retain What You Learn: Engaging animations and real-life examples make topics easy to grasp.
  • Be Ready on Test Day: Use the Introduction to Accounting chapter exam to be prepared.
  • Get Extra Support: Ask our subject-matter experts any relevant question. They're here to help!
  • Study With Flexibility: Watch videos on any web-ready device.

Students will review:

In this chapter, you'll learn the answers to questions including:

  • What is the purpose of accounting, and why is it important in business?
  • Who are the main external and internal users of accounting?
  • What does 'GAAP' stand for?
  • Why are ethics important in accounting?
  • What type of technology is used in accounting?

41 Lessons in Chapter 1: Introduction to Accounting: Help and Review
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.

What Is GAAP? - The Generally Accepted Accounting Principles

2. 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.

Technology in Accounting: The Growing Role of Technology in Accounting

3. 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.

The Agency Problem in Finance: Definition & Examples

4. The Agency Problem in Finance: Definition & Examples

The agency problem can be a really big issue in the finance world. Find out what an agency problem is and look at some real-world examples. Then, test yourself on your new knowledge.

Petty Cash Fund in Accounting

5. Petty Cash Fund in Accounting

A petty cash fund is used by a business to take care of very small purchases that do not justify a formal journal entry. They are used for speed and convenience when dealing with very small business expenses.

Business Transaction: Definition, Types & Analysis

6. Business Transaction: Definition, Types & Analysis

This lesson looks at business transactions and offers a definition for them. We'll also go over types of business transactions and look at some examples.

Calculate Ending Inventory: Formula & Explanation

7. Calculate Ending Inventory: Formula & Explanation

This lesson will outline the concept of ending inventory and how it is used in business. Also, we will take a look at a balance sheet and explore the way in which investors use it as tool to gain a high-level view of the status of their companies.

Calculating Beginning Inventory: Formula & Explanation

8. Calculating Beginning Inventory: Formula & Explanation

One of the most important assets a company must protect and control is inventory. In this lesson, you'll learn how to calculate beginning inventory, the first step of accounting for inventory changes during an accounting period.

Capital Expenditures: Definition, Formula & Examples

9. Capital Expenditures: Definition, Formula & Examples

Businesses often make purchases that help them to maintain or grow their current operations. This is called capital expenditure. In this lesson, you will learn what capital expenditure is and examine its formula as well as some examples of it.

Capital Lease in Accounting: Definition, Requirements & Example

10. Capital Lease in Accounting: Definition, Requirements & Example

In this lesson, we'll discuss the nature of capital leases. We'll look at what it means to 'own' an asset from an accounting standpoint so that we can understand why the accounting for capital leases differs from the accounting for operating leases. We'll then look at this accounting and some of its complexities.

Cash Basis Accounting Method: Definition & Example

11. Cash Basis Accounting Method: Definition & Example

This lesson defines cash basis accounting and describes the differences between this type of accounting and other accounting methods. It also discusses the type of organizations that typically use cash basis accounting, and gives an example of how cash basis accounting works.

Cash Discount: Definition, Formula & Example

12. Cash Discount: Definition, Formula & Example

Sometimes you can get a cheaper price for a product if you pay cash up front. In this lesson, you'll learn about the cash discount and its formula, and you will find some examples of ways in which it is used. A short quiz follows the lesson.

Cash Equivalents: Definition & Examples

13. Cash Equivalents: Definition & Examples

In this lesson, you'll learn the purpose of cash equivalents and their characteristics. We'll also define interest and discuss an example of a cash equivalent, time deposit.

Cash Payments Journal: Definition & Example

14. Cash Payments Journal: Definition & Example

In this lesson, we'll learn about cash payments journals. We'll explain how a company might use one and use an example to learn how to make entries. The lesson will be concluded with a summary and a quiz.

Cash Receipts Journal: Definition & Examples

15. Cash Receipts Journal: Definition & Examples

This lesson explains how a cash receipts journal is used by a business, what types of transactions are posted in a cash receipts journal, and how to keep those transactions balanced.

Check Clearing: Definition, Process & Rules

16. Check Clearing: Definition, Process & Rules

Have you ever wondered what happens when you deposit a check? This lesson will discuss the details of check clearing. We will examine the definition, process, and rules for check clearing and then review an example.

What Is a Computerized Accounting System? - Types, Advantages & Disadvantages

17. What Is a Computerized Accounting System? - Types, Advantages & Disadvantages

This lesson explains what a computerized accounting system is, how a company selects a system, and what the advantages and disadvantages of computerized accounting systems are.

What Is a General Journal in Accounting? - Definition, Format & Examples

18. What Is a General Journal in Accounting? - Definition, Format & Examples

The general journal is usually the first of a company's accounting records that we learn about and use, but it can also be one of the most misunderstood. It doesn't have to be difficult, though, as we'll show here.

What Is a General Ledger? - Definition & Examples

19. What Is a General Ledger? - Definition & Examples

Accountants and bookkeepers record financial events in multiple documents in order to ensure the accuracy of the information. In this lesson, we will look at the general ledger and you can discover how to make entries into this ledger.

Financial Documents: Definition, Types & Business Examples

20. Financial Documents: Definition, Types & Business Examples

Financial documents are vital tools for analyzing the success of a business. In this lesson, you'll learn about some important financial documents and be provided some examples. You'll also have a chance to take a short quiz.

What Is a Bank Loan?

21. What Is a Bank Loan?

Bank loans are common types of funding for many people who want to buy big ticket items, such as cars or homes. Read on to find out more on what a bank loan is, what it is commonly used for, and the different types of loans banks offer.

What Are Accounts Payable? - Definition & Examples

22. What Are Accounts Payable? - Definition & Examples

Nobody likes to have accounts payable, but they are a reality of business. In this lesson, you'll learn the definition of accounts payable, how they fit into a business overall finances and be provided some examples.

What Is Capital? - Definition & Concept

23. What Is Capital? - Definition & Concept

Capital is a fundamental concept in business. In this lesson, you'll learn about capital and some related concepts. You'll also have a chance to take a short quiz after the lesson to reinforce your knowledge.

What Is GAAP?  - Definition, Standards & Requirements

24. What Is GAAP? - Definition, Standards & Requirements

In this lesson, you will learn about generally accepted accounting principles (GAAP). You will learn the reason for the principles, their purpose, and how they relate to both corporate America and everyday people.

What Is Revenue? - Definition & Concept

25. What Is Revenue? - Definition & Concept

Revenue is essential for nearly every type of business. In this lesson, you'll learn what revenue is, what it's not, and how it fits into the overall income of a business. You'll also have a chance to reinforce your knowledge with a short quiz.

Economist Joseph Schumpeter: Theories & Books

26. Economist Joseph Schumpeter: Theories & Books

In this lesson you will learn about Joseph Schumpeter's most notable economic theories and his most widely read books. Explore what influenced his ideas and how these ideas shaped the science of economics.

Modern Portfolio Theory: Definition & Examples

27. Modern Portfolio Theory: Definition & Examples

In this lesson, we will go over the foundations of modern portfolio theory. We will also look at how investors can use it to create an appropriate investment mix that optimizes risk.

Black-Scholes Model: Formula & Examples

28. Black-Scholes Model: Formula & Examples

The Black-Scholes model is a mathematical model for financial markets. From this larger model, the Black-Scholes formula for theoretical option value is used to determine what price put and call options should be trading at based on assumptions of volatility

Optimal Capital Structure

29. Optimal Capital Structure

There are multiple approaches and perspectives in defining an optimal capital structure. In this lesson, we will examine two important perspectives: raising capital and servicing capital.

Required Rate of Return (RRR): Formula & Calculation

30. Required Rate of Return (RRR): Formula & Calculation

Both investors and businesses have a required rate of return (RRR) for potential investments and projects. We will use examples and formulas to calculate an RRR for both.

What is a Closed-End Fund? - Definition & Examples

31. What is a Closed-End Fund? - Definition & Examples

In this lesson we will look at what a closed-end fund is and how it is structured. We all also review how it combines elements of both mutual funds and stocks.

Monetary Measurement Concept: Advantages & Limitations

32. Monetary Measurement Concept: Advantages & Limitations

A company must record its business activities so it can summarize the information and produce reports. In this lesson, you will learn about the monetary measurement concept.

What is a Lien Waiver? - Definition, Partial & Conditional

33. What is a Lien Waiver? - Definition, Partial & Conditional

In this lesson we will look at what a lien waiver is and how it protects someone who is paying for contract work and materials. We will also review the different forms of waivers and explain the scope of each type.

What is a Hospital Lien? - Definition & the Hospital Lien Act

34. What is a Hospital Lien? - Definition & the Hospital Lien Act

In this lesson you will learn about hospital liens and why hospitals and other medical providers impose them. You will also learn what makes a lien valid and about its disadvantages.

Types of Liens: Judgment, Statutory & Consensual

35. Types of Liens: Judgment, Statutory & Consensual

There are three basic types of liens: consensual, statutory and judgment. In this lesson, we will provide descriptions and examples of each lien type.

Equitable Lien vs. Constructive Trust

36. Equitable Lien vs. Constructive Trust

In this lesson, we'll define equitable restitution and you'll learn about two different types: equitable lien and constructive trust. We'll also explain two scenarios that distinguish the two types.

How Long Does a Tax Lien Stay on Your Credit Report?

37. How Long Does a Tax Lien Stay on Your Credit Report?

Read this lesson and you'll learn how long a tax lien can affect your credit report for. You'll also learn whether there is a way to remove it sooner than later and how you can qualify for the removal.

What is a Medical Lien? - Definition & Requirements

38. What is a Medical Lien? - Definition & Requirements

In this lesson we will discuss what how you many be affected in the event of a medical lien and what exactly a medical lien is. We will also go over the requirements for a medical lien to be placed.

What is a Suspense Account? - Definition & Examples

39. What is a Suspense Account? - Definition & Examples

The suspense account is used as a place to temporarily hold unclassified or disputed funds and expenses while a company decides where to put them permanently. This lesson will illustrate some common uses for suspense accounts with examples.

What is a Payable on Death Bank Account?

40. What is a Payable on Death Bank Account?

In this lesson, you'll learn how some people avoid the probate process and make it easier for beneficiaries to receive a sum of money upon their death. You'll also learn how easy it is for these beneficiaries to claim the money.

Capital Lease vs. Operating Lease in Accounting

41. Capital Lease vs. Operating Lease in Accounting

There are two main types of leases, capital and operating. The accounting treatment is different for both. We will work through an example and show the similarities and differences.

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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