About This Chapter
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.
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. 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.
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.
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.
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.
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.
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.
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.
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.
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Other chapters within the High School Business for Teachers: Help & Review course
- Recording & Planning in Accounting
- Accounting Analysis & Evaluation
- Economic Activities & Markets
- Business Markets & Globalization
- Banking & the Federal Reserve
- Business Types & Planning
- Entrepreneurship & Start-Ups
- Basics of Marketing Strategy
- Business Management Functions
- Management Theory for the Business Environment
- Concepts in Human Resource Management
- Resource Management & Training
- Compensation & Performance Review
- Principles of Business Ethics
- Principles of Business Law
- Employment Law Basics
- International Business Strategies
- Verbal Communication in the Workplace
- Written & Electronic Communication
- Presentations and Reporting
- Computer Use in Business
- Information Technology in the Business Environment
- Internet Technologies in Business
- Business Information Privacy and Security