Ch 1: Fundamental Concepts in Accounting

About This Chapter

Create a study plan for an upcoming test covering fundamental concepts in accounting with some assistance from this chapter. These video lessons examine topics from income statements to balance sheets and offer quizzes that can give you immediate feedback on your progress.

Fundamental Concepts in Accounting - Chapter Summary

This self-paced chapter can help you better understand fundamental concepts in accounting, including its purpose and relationship in business. As you work your way through this chapter, you'll get a refresher on the entire accounting cycle and review the roles of various statements generated throughout. Topics of discussion include:

  • The basic principles of accounting
  • The accounting cycle
  • Financial statements
  • Balance sheets
  • Income statements
  • Statement of cash flows
  • The accounting equation
  • Fiscal policy tools

Video lessons in this chapter illustrate each accounting topic with plenty of examples. There are even transcripts of the lessons designed for individuals who prefer to read the materials or want to print copies to add to a study guide. Quizzes at the end can alert you to any concepts that might need more attention.

9 Lessons in Chapter 1: Fundamental Concepts in Accounting
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.

The Accounting Cycle: Definition, Steps & Examples

2. 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.

What Are Financial Statements? - Definition, Purpose & Importance

3. 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.

The Balance Sheet: Purpose, Components & Format

4. The Balance Sheet: Purpose, Components & Format

There are four financial reports that make up a group known as the financial statements. We will take a walk with one of those reports - the balance sheet - and learn what it is, what items are included on it and what its role in the group is.

What Is an Income Statement? - Purpose, Components & Format

5. What Is an Income Statement? - Purpose, Components & Format

There are four financial reports that are created during the accounting cycle. These four reports make up what is commonly known as the financial statements. In this lesson, we will focus our attention on the income statement. We will learn what the income statement is, what its role in the financial statements is, and why it is important in accounting.

The Statement of Cash Flows: Purpose, Format & Examples

6. The Statement of Cash Flows: Purpose, Format & Examples

There are four financial reports that are required in financial statements. In this lesson, you will learn about the fourth and final report - the statement of cash flows. You'll learn what the makeup of the statement is, its purpose, and why it is important to users of the financial statements.

The Fundamental Principles of Accounting

7. 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.

The Accounting Equation: Definition & Components

8. 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.

Fiscal Policy Tools: Government Spending and Taxes

9. Fiscal Policy Tools: Government Spending and Taxes

Discover the three main tools the government uses to address recessionary and inflationary economies - what economists call fiscal policy. Find out how these tools are used to help the economy in different situations.

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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