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Ch 8: Overview of Accounting Basics

About This Chapter

In this chapter, you will have the opportunity to review basic accounting principles and concepts and develop a deeper understanding of their applications. This resource would be helpful to students taking accounting or business courses or preparing to take class or student assessment exams.

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.

10 Lessons in Chapter 8: Overview of Accounting Basics
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.

Accounting vs Bookkeeping: Differences and Similarities

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.

Accounting Disciplines: Descriptions and Definitions

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.

Basic Accounting Terms & Phrases

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.

The Fundamental Principles of 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.

What Is GAAP? - The Generally Accepted Accounting Principles

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.

The Accounting Cycle: Definition, Steps & Examples

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.

Business Transaction: Definition, Types & Analysis

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.

Operating Expenses: Definition, Formula & 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.

Difference Between Cash & Profit

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.

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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