About This Chapter
Overview of Accounting Basics - Chapter Summary
The lessons in this chapter focus on topics including accounting terms, fundamental principles and steps of the accounting cycle. Video and text lessons offer expert instruction and examples to make learning about this material quick and easy.
Other topics covered in this chapter include definitions and examples of relevant concepts and processes, such as operating expenses and business transaction. Once you have completely reviewed this chapter, you should be able to do the following:
- Relate the importance and purpose of accounting to business
- Compare and contrast accounting and bookkeeping
- List different accounting disciplines and identify and define basic accounting terms
- Name the seven major accounting principles
- Explain GAAP standards
- Describe the steps associated with the accounting cycle
- Define types of business transactions and calculate operating expenses
- Differentiate between cash and profit
These short lessons can be easily accessed at any time, on any device, so studying is made convenient to fit any schedule. Instructors can be contacted with questions via an online form, and you can keep track of your progress through this chapter on your Dashboard. Brief self-assessment quizzes help you demonstrate your understanding of these topics and your readiness in applying what you know to exams or classroom discussions.
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. 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.
5. 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.
6. 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.
7. 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.
8. 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.
9. Operating Expenses: Definition, Formula & Examples
This lesson introduces the concept of operating expenses. It explains what operating expenses are and how they are calculated. Examples of operating expenses are included.
10. Difference Between Cash & Profit
The terms cash and profit are familiar, but they have technical meanings in the world of business. This lesson examines the meanings of the terms and provides tangible examples of how to incorporate this knowledge into organizational planning.
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Other chapters within the VCE Accounting: Exam Prep & Study Guide course
- Establishing a Small Business
- Funding for Small Businesses
- Budgeting in Business
- Overview of Service & Trading Businesses
- Business Analysis Overview
- Price Setting Strategies for Business
- Financial Statements Overview
- Overview of the Accounting Cycle
- Internal Control Use in Accounting
- Technology in Accounting
- Double-Entry Accounting Overview
- Journals in Accounting
- Accrual-Based Accounting System
- VCE Accounting Flashcards