About This Chapter
Payroll Accounting Overview - Chapter Summary
This comprehensive overview can ensure you have a well-rounded understanding of payroll accounting. Whether you know a little or a lot about this subject, fun lessons can help you gain full comprehension. Study topics that include double-entry accounting, the fundamental principles of accounting and periodic reporting. When you're finished with this chapter, you will be able to:
- Share the purpose of financial statements and explain how to prepare them
- Recognize examples of a general ledger
- Differentiate between temporary and permanent accounts
- Define the time period principle
- Explain how using accrual accounting can make financial statements more useful
- Discuss the implications of reversals in accounting
- Describe substantive procedures in accounting
- Detail the relationship between payroll journal entries, financial statements and balance sheets
Feel free to review any lessons in this chapter in your sequence of choice and visit them as often as you'd like. Use our multiple-choice quizzes to test your comprehension of the lessons you study. To check your overall understanding of payroll accounting, be sure to take our practice chapter exam. Our Dashboard tracks your progress through this chapter and lets you submit lesson topic questions to our experts with ease.
1. 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.
2. What Are Financial Statements? - Definition, Purpose & Importance
Financial statements are big players in the world of accounting. In this lesson, you will be introduced to each of the financial statements. You will also learn what their role is in the accounting industry, who they are important to and why they are important.
3. What Is Double-Entry Accounting? - Basics & Examples
Double-entry accounting is the method used by professional accountants and bookkeepers to maintain business (and even personal) financial records. The basis of the double-entry system is the accounting equation.
4. 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.
5. Temporary & Permanent Accounts: Definition & Differences
Accounts are classified in a variety of ways in accounting. In this lesson, you will learn about two types of account classifications: temporary and permanent accounts.
6. Periodic Reporting & the Time Period Principle
Time plays a very important role in accounting and financial reporting. In this lesson, you will learn why time is important as we discuss periodic reporting and the time period principle.
7. Using Accrual Accounting to Make Financial Statements More Useful
What is the relationship between the financial statements and accrual accounting? Do you know? By the time this lesson is over, you will not only know what the relationship is between the two but also why that relationship is important.
8. What are Reversals in Accounting? - Definition & Implications
In this lesson, you will learn the definition and use of reversing entries in accounting. You will also learn when reversing entries are recorded and when they are required.
9. Substantive Procedures in Auditing: Definition & Explanation
During an audit engagement, auditors are looking for evidence that supports their conclusions. To get this evidence, they perform substantive procedures. In this lesson, you'll learn what that means and learn some examples of substantive procedures.
10. Preparing Financial Statements
Financial statements are the most sought after reports in the financial industry. In this lesson, you will learn how to prepare them using information found on the adjusted trial balance.
11. Payroll Journal Entries: Financial Statements & Balance Sheets
This lesson is about payroll accounting and the obligations of the employee and employer. You'll learn how to use payroll journal entries and incorporate numbers into financial statements, including income statements and balance sheets.
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Other chapters within the Certified Payroll Professional (CPP): Exam Prep & Study Guide course
- Payroll Processes & Laws
- Employee Classification
- Calculating Employee Paychecks
- Payroll Withholding & Deductions
- Employer Benefit & Contribution Plans
- Taxable & Nontaxable Employee Benefits
- Preparing, Depositing & Reporting Taxes
- Payroll Audits & Internal Controls
- Managing a Payroll Department
- Certified Payroll Professional (CPP) Flashcards