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Ch 3: Mechanics of the Accounting Cycle: Help and Review

About This Chapter

The Mechanics of the Accounting Cycle chapter of this College Financial Accounting Help and Review course is the simplest way to master the accounting cycle's mechanics. 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 the mechanics of the accounting cycle.

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 the accounting cycle or working with debits and credits.
  • Need an efficient way to learn about the mechanics of the accounting cycle.
  • 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 Mechanics of the Accounting Cycle 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 Mechanics of the Accounting Cycle 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 accounting equation, and how is it used?
  • How are source documents used in accounting?
  • How are accounts categorized?
  • Why are credits and debits important in accounting?
  • How are business transactions recorded?
  • What roles do journal entries and trial balances play in the accounting cycle?
  • How are financial statements used to evaluate a company's performance?

16 Lessons in Chapter 3: Mechanics of the Accounting Cycle: Help and Review
The Accounting Equation: Definition & Components

1. 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

2. 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.

What Are Accounts? - Definition and Use to Categorize Transactions

3. 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.

Ledgers and Chart of Accounts: Definitions and Use

4. Ledgers and Chart of Accounts: Definitions and Use

There are several key concepts that are important to learn when it comes to accounting. In this lesson, you will learn about the ledger and the chart of accounts.

Understanding Debits and Credits in Accounting

5. Understanding Debits and Credits in Accounting

Debits and credits are major players in the accounting world. In this lesson, you will learn just what debits and credits are and why they are important to accounting.

Recording Business Transactions in Accounting

6. Recording Business Transactions in Accounting

Recording a transaction is the first step in the accounting cycle. In this lesson, you will learn why transactions are recorded, where they are recorded, and how they are recorded.

Using the Accounting Equation: Analyzing Business Transactions

7. Using the Accounting Equation: Analyzing Business Transactions

Transaction analysis can be a tricky task. In this lesson, you will learn what transaction analysis is, how to analyze a transaction, and how it is related to the accounting equation.

Journal Entries and Trial Balance in Accounting

8. Journal Entries and Trial Balance in Accounting

There are several concepts that make up an accounting cycle. In this lesson, you will learn about two of those - journal entries and the trial balance.

What Are Capital Resources? - Definition & Examples

9. What Are Capital Resources? - Definition & Examples

The manufacturing process varies widely for businesses creating all types of goods, though all utilize resources. This lesson explains what capital resources are, how they are essential to the production of goods, and the difference between capital resources and raw materials.

What Are Fixed Assets? - Definition & Examples

10. What Are Fixed Assets? - Definition & Examples

A company may own different kinds of resources, among which are fixed assets. This lesson explains what fixed assets are, provides examples, and notes the importance of a business' industry in determining fixed assets.

What Are Short-Term Investments? - Definition & Examples

11. What Are Short-Term Investments? - Definition & Examples

Learn more about short-term investments, their definition, time frames, and associated risk. Find out what defines an asset as liquid and what is classified as a short-term investment.

What is a Stock? - Definition, Types & Examples

12. What is a Stock? - Definition, Types & Examples

This lesson will explore the concept of ownership in a company through stock. Also in this lesson, different types of stocks will be explained and examples will be given.

Cost of Goods: Definition & Calculation

13. Cost of Goods: Definition & Calculation

It takes money to make money. In this lesson, you'll learn about the cost of goods, what it is, what it isn't and how to calculate the costs of goods sold. You'll also have a chance to reinforce your knowledge with a short quiz.

Hicks' Theory of Business Cycles

14. Hicks' Theory of Business Cycles

Business cycles are an important part of economics and have been shown to occur, surprisingly regularly, on a 8-10 year cycle. A number of economists have theories why this is the case. In this lesson, learn about John Hick's theory.

Accounting for Notes Issued: Cash, Rights, Property, Goods & Services

15. Accounting for Notes Issued: Cash, Rights, Property, Goods & Services

In this lesson, you will learn how to account for notes payable issued for cash, property and services. Additionally, you will learn how to classify notes payable on the balance sheet.

Bonds & Notes Payable Accounting: Entries & Financial Disclosures

16. Bonds & Notes Payable Accounting: Entries & Financial Disclosures

This lesson discusses accounting entries for bonds and notes payable from the inception to interest payments to the maturity date. We'll describe the impact of the accounting entries on the income statement, balance sheet, and cash flow statement.

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