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Ch 1: Introduction to Accounting: Homework Help

About This Chapter

The Introduction to Accounting chapter of this College Financial Accounting Homework Help course helps students complete their introductory accounting homework and earn better grades. This homework help resource uses simple and fun videos that are about five minutes long.

How it works:

  • Identify which concepts are covered on your introductory accounting homework.
  • Find videos on those topics within this chapter.
  • Watch fun videos, pausing and reviewing as needed.
  • Complete sample problems and get instant feedback.
  • Finish your introductory accounting homework with ease!

Topics from your homework you'll be able to complete:

  • The purpose and importance of accounting in business
  • Internal and external users and uses of accounting
  • Generally Accepted Accounting Principles (GAAP)
  • The importance of ethics in accounting
  • Technology in accounting

59 Lessons in Chapter 1: Introduction to Accounting: Homework Help
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.

External and Internal Users and Uses of Accounting

2. 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.

What Is GAAP? - The Generally Accepted Accounting Principles

3. 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.

The Importance of Ethics in Accounting

4. The Importance of Ethics in Accounting

Ethics - are they really important in accounting? In this lesson, we will discuss what ethics are and what role they play in accounting; we'll also review a case that is deeply rooted in ethics. In the end, we will decide whether or not ethics are important in accounting.

Technology in Accounting: The Growing Role of Technology in 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.

Zero-Based Budgeting: Definition, Advantages, Disadvantages & Examples

6. Zero-Based Budgeting: Definition, Advantages, Disadvantages & Examples

Many companies use some form of zero-based budgeting, which is a budgeting process where no amounts carry over from prior years and no programs are considered pre-approved. In this lesson, we'll learn why companies do this and how the process works.

The Importance of Evaluating Investment Management

7. The Importance of Evaluating Investment Management

Whether you're an individual or the financial manager of a company, the ability to evaluate your investment managers is a valuable skill in order to make sure that you are investing as much as possible.

Audit Committee: Role & Responsibilities

8. Audit Committee: Role & Responsibilities

In this lesson we will explore how a Corporate Audit Committee functions as an appointed body of men and women representing the investors of a company to protect their investment from financial wrongdoing.

Average Collection Period: Formula & Analysis

9. Average Collection Period: Formula & Analysis

In this lesson, you'll learn the purpose of calculating the average collection period and the two-step process. We'll also discuss which financial statements are needed to find the data and the importance of comparing the average collection period to the credit policy.

Bill of Quantities: Definition, Preparation, Format & Example

10. Bill of Quantities: Definition, Preparation, Format & Example

This lesson explains how bringing an architect's plan to life requires many tools, not just labor and planning but assessment. A measure of the work necessary to carry out the design is important. In Great Britain and Australia, a bill of quantities is used to produce these specifications.

Blank Endorsement: Definition & Example

11. Blank Endorsement: Definition & Example

Bankers are very familiar with endorsements. They see different types of endorsements every day. They are trained to check the endorsements so that they know how to handle the transaction and make sure it's accurate. Today we will discover what blank endorsement is.

Operating Leverage: Definition, Calculation & Examples

12. Operating Leverage: Definition, Calculation & Examples

Explore the definition and importance of operating leverage, and take a look at examples to assist you in the accounting process. When you are finished with the lesson, there is a quiz to test your knowledge.

Period Costs in Accounting: Definition & Examples

13. Period Costs in Accounting: Definition & Examples

In this lesson, we'll discuss the importance of accurately determining period costs. We'll also review accounting principles associated with classifying costs and examine types of period costs.

Periodic Inventory System: Definition, Advantages & Examples

14. Periodic Inventory System: Definition, Advantages & Examples

Business owners use inventory systems to track and update inventory. This lesson defines the periodic inventory system, outlines its advantages and disadvantages, and demonstrates its use with an example.

Perpetual Inventory System: Definition, Advantages & Examples

15. Perpetual Inventory System: Definition, Advantages & Examples

Businesses keep track of inventory through inventory systems. This lesson will focus on one type of system - perpetual inventory system. It will define perpetual inventory system, examine its advantages and give an example.

Predetermined Overhead Rate: Formula & Example

16. Predetermined Overhead Rate: Formula & Example

Overhead costs can be very tricky to estimate but it is necessary to do so when job planning. There are a few ways to accomplish this and this lesson will discuss some of the ways to effectively compute a predetermined overhead rate.

Prepaid Expenses in Accounting: Definition & Examples

17. Prepaid Expenses in Accounting: Definition & Examples

Prepaid expenses are a very common business activity that must be understood to effectively manage cash flow. This lesson explains when prepaid expenses are incurred and offers examples of common prepaid expenses.

Prime Cost in Accounting: Definition & Formula

18. Prime Cost in Accounting: Definition & Formula

Prime costs represents the total costs directly involved in manufacturing a product. This lesson breaks down the components of prime costs, its formula, and how it is used.

Private Good: Definition & Examples

19. Private Good: Definition & Examples

In this lesson, we will define private good. We will compare it to a public good and provide examples. This will be followed by characteristics and a conclusion that helps capture the main points.

Purchase Decision: Definition & Hierarchy

20. Purchase Decision: Definition & Hierarchy

In this lesson, you will learn the five stages to purchase decision that all consumers make when making a product choice. You will also see why this decision process is important to businesses when building a customer base.

Purchase Requisition: Definition & Process

21. Purchase Requisition: Definition & Process

This lesson explains what a purchase requisition is, how it is used to have purchases approved, and the role it plays in accounting controls. The process of using a purchase requisition is explained, and a quiz follows.

Purchases Journal: Definition & Example

22. Purchases Journal: Definition & Example

This lesson explains what a purchase journal is, how it is used, and what types of transactions are recorded in a purchase journal. Several different examples of purchase journal postings are included.

Net Loss: Definition & Formula

23. Net Loss: Definition & Formula

Business owners hope that each period, the money brought in is more than the money paid out. But that's not always the case. In this lesson, you'll learn the definition and formula for net loss, and why it can be bad news for business owners.

Net Profit: Definition & Calculation

24. Net Profit: Definition & Calculation

In this lesson, you will learn about net profit. You will learn the definition of net profit, how it is calculated, and see an example of how it relates to everyday life.

Elliott Wave Theory & Fibonacci Numbers in Finance

25. Elliott Wave Theory & Fibonacci Numbers in Finance

Elliot Wave Theory is chart analysis that attempts to break down price movement into 8-wave patterns made up of 5 impulse waves and 3 corrective waves. Using Fibonacci numbers, Elliot Wave Theory is used to predict future price movement.

Utility Theory: Expected & Marginal

26. Utility Theory: Expected & Marginal

This lesson will explain expected utility theory, which is used as a tool for making decisions under conditions of uncertainty and marginal utility, which quantifies the satisfaction obtained from consuming additional units of a product or service.

Utility Theory: Definition, Examples & Economics

27. Utility Theory: Definition, Examples & Economics

This lesson will explain the economic concept of utility and the two ways it is measured. The usefulness of utility in the theoretical derivation of demand curves is also explained.

What is Alpha in Finance? - Definition & Formula

28. What is Alpha in Finance? - Definition & Formula

In this lesson, you will learn what alpha is in finance, how it is used to measure return based on risk, and its relationship with beta. You will also learn the formula for calculating alpha.

What is Beta in Finance? - Definition & Formula

29. What is Beta in Finance? - Definition & Formula

In this lesson, you will learn what beta is, how it is used in finance, the formula to calculate it, and how to best utilize it for success in investing.

Accounting Profit vs. Economic Profit

30. Accounting Profit vs. Economic Profit

In this lesson you will learn the differences between accounting profit and economic profit. You'll be able to calculate both and understand why accounting profit is usually larger than economic profit.

What are Professional References?

31. What are Professional References?

At some stage in your job search, chances are good that you will encounter a request for a list of professional references. In this article, you'll learn what a professional reference is (and isn't) and get some useful tips on how to choose them wisely.

Collateralized Mortgage Obligations (CMOs)

32. Collateralized Mortgage Obligations (CMOs)

In this lesson, you will learn about a type of complex security called the collateralized mortgage obligation (CMO). A collateralized mortgage obligation is a type of security that uses mortgage backed security as collateral, hence the name of collateralized mortgage obligation.

What is Consumer Demand? - Theory & Examples

33. What is Consumer Demand? - Theory & Examples

In this lesson, you will learn what consumer demand is, how it works together with supply, how it applies to the economy, and different methods for generating or understanding demand.

What is Tier 1 Capital? - Definition, Ratio & Core Capital

34. What is Tier 1 Capital? - Definition, Ratio & Core Capital

In this lesson, you will learn what Tier 1 capital stands for, what assets are included, how to calculate the required ratio, and its importance in how banks function.

Tier 2 Capital: Definition, Ratio & Calculation

35. Tier 2 Capital: Definition, Ratio & Calculation

In this lesson, you will learn about Tier 2 Capital, how it differs from the assets known as Tier 1 Capital, and the calculations required for the Tier 2 Capital ratio formula.

What is Currency Hedging? - Definition, Example & Risk

36. What is Currency Hedging? - Definition, Example & Risk

After this lesson, you will be able to understand the nature and purpose of hedging, identify the common derivative contracts and recognize the financial risks related to derivatives.

Hedging in Finance: Definition & Example

37. Hedging in Finance: Definition & Example

When individuals and institutions have investments in the stock market, they are exposed to the risk of financial losses. In this lesson, we'll learn about a way to protect against some losses, known in the financial industry as hedging.

What is the NASDAQ Stock Exchange?

38. What is the NASDAQ Stock Exchange?

Read this lesson to learn how the second largest stock exchange in the world got its start. You'll also learn the types of stocks that are traded on this stock exchange.

Equity Method of Accounting

39. Equity Method of Accounting

This lesson discusses the equity method of accounting, an accounting methodology for equity investments in which the investor company can exercise significant influence over the investee company but does not control it.

What is Fixed-Income Trading?

40. What is Fixed-Income Trading?

A big universe of fixed income securities is out there to meet many investors' needs. This lesson will introduce you to this world and how you can determine which fixed income investments are right for your investment portfolio.

Functional Currency: Definition & Examples

41. Functional Currency: Definition & Examples

Functional currency is the primary type of money that a company uses in its business activities. It is most relevant for multinational corporations that conduct business in multiple currencies. With the functional currency properly identified, overall business performance can be measured most accurately.

Mental Accounting: Definition & Example

42. Mental Accounting: Definition & Example

Do you view your money in separate chunks? The concept of mental accounting says that you do. Learn how this can affect your spending and investing choices in this lesson.

Net Operating Assets: Definition & Calculation

43. Net Operating Assets: Definition & Calculation

Companies use some assets to generate revenue while others are used for financing purposes. In this lesson, you will learn about net operating assets.

Soft Dollar Arrangements

44. Soft Dollar Arrangements

Payments for brokerage services provided to clients are tightly controlled and monitored by many different agencies. These dollars, soft dollars, are retained on a trade to be used for research services that provide a primary benefit to the client.

Hard Dollar Compensation

45. Hard Dollar Compensation

Financial planning and investing is a major part of our economy. Brokerage firms and traders are paid for services provided, known as hard dollars. This lesson will provide a basic investment overview and further explain hard dollar compensation.

What are Special Dividends?

46. What are Special Dividends?

A corporation can pay different types of dividends to its shareholders, the individuals who own its shares. In this lesson, you will learn about special dividends.

What is Speculation in the Stock Market?

47. What is Speculation in the Stock Market?

In every financial market, speculation plays a key role. On some exchanges with cheap stocks, speculative trades are the primary trades happening. In this lesson, we'll discuss the role speculation plays in these financial markets.

Closed-End Fund (CEF) vs. Open-End Fund

48. Closed-End Fund (CEF) vs. Open-End Fund

In this lesson, we will look at the differences between closed-end funds and open-end funds, with special attention given to how these funds are bought and sold as well as priced.

What is Tracking Error? - Definition, Formula & Example

49. What is Tracking Error? - Definition, Formula & Example

This lesson defines tracking error with regards to investment portfolios and funds. It also shows a detailed formula and step-by-step calculation of two examples of funds and indexes.

Agency Loss: Definition & Examples

50. Agency Loss: Definition & Examples

In this lesson, you will learn about agency loss which arises when two parties in a relationship (an agent and a principal) have different goals/motivations.

Economic Entity Assumption: Definition & Examples

51. Economic Entity Assumption: Definition & Examples

Many concepts explain how companies should account for and present information to users of financial statements. In this lesson, you will learn about the economic entity assumption.

Monetary Unit Assumption: Definition & Examples

52. Monetary Unit Assumption: Definition & Examples

When a business transaction occurs, accountants must decide the amount to record in the company's books. One way of doing this is the monetary unit assumption, which you will learn about in this lesson.

Convertible Preferred Stock: Definition & Advantage

53. Convertible Preferred Stock: Definition & Advantage

In this lesson, you will learn about some of the differences between common and preferred stock, with an emphasis on convertible preferred stock issues.

Convertible Preferred Stock: Formula & Examples

54. Convertible Preferred Stock: Formula & Examples

In this lesson, you will learn the main characteristics of convertible preferred stock. You will also learn some of the advantages and disadvantages of convertible preferred stock for the issuer and the investor.

Cumulative Preferred Stock: Definition & Advantage

55. Cumulative Preferred Stock: Definition & Advantage

When you invest in a company, you could choose to buy common stock or preferred stock. In this lesson, you will learn about cumulative preferred stock.

Cumulative Preferred Stock: Formula & Examples

56. Cumulative Preferred Stock: Formula & Examples

In this lesson, you will learn the most important characteristics of cumulative preferred stock and its advantages and disadvantages. You will also learn financial formulas applied to cumulative preferred stock.

Participating Preferred Stock: Definition & Example

57. Participating Preferred Stock: Definition & Example

In this lesson, you will learn how dividends and liquidation proceeds are distributed to participating preferred stock shareholders. We will also discuss why venture capital firms use this financing vehicle to raise funds.

Callable Preferred Stock:  Definition & Example

58. Callable Preferred Stock: Definition & Example

In this lesson we will review callable preferred stock shares. We will also explore the benefits and disadvantages of these shares for both the corporation and the investors.

Long-Term Investments: Definition, Types & Examples

59. Long-Term Investments: Definition, Types & Examples

In this lesson, you will learn to recognize and account for long-term investments. You will also learn when to use the equity method of accounting and consolidation accounting.

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