Brain Bites - Business Accounting Basics, Part 1

You will be able to:

• Describe the Accounting Equation (Assets = Liabilities + Equity)
• Discuss assets, liabilities, and equity
• Explain the role of debits and credits in double-entry accounting
• Differentiate between normal debit balance and normal credit balance accounts
• Identify the three primary financial statements and their specific purposes
• Explain the purposes of the Chart of Accounts, the General Journal, and the General Ledger
• Describe the function of organizational numbering systems
• Explain the difference between a calendar year and a fiscal year
• Differentiate between the accrual basis and cash basis methods of accounting

• Brain Bites - Business Accounting Basics, Part 1 26:30

  • 1: The Accounting Equation 08:19
  • 2: Ups and Downs of Debits & Credits 04:05
  • 3: Keeping Records: The Journal, Ledger, & Chart of Accounts 03:53
  • 4: Key Accounting Documents 03:12
  • 5: Accrual vs. Cash 04:01
  • 6: Knowledge Check 03:00

Confused by debits, credits, balance sheets, and other business accounting terms? Because having a working knowledge of the terminology is the first step to having a strong understanding of business accounting, this is the course for you!

Learn the terms and concept you need to understand the fundamentals of financial accounting. In this course, you’ll learn the vocabulary necessary for understanding the accounts, ledgers, and reports associated with double-entry bookkeeping.

You’ll learn the function of the accounting equation and how it applies to the balance sheet. You’ll also learn the different categories of assets and liabilities, why equity is also called net worth, and how an account’s normal credit balance affects the application of debits and credits.

Finally, you’ll learn the purpose for each of the three main financial reports: the balance sheet, the income statement, and the cash flow statement and how to differentiate between the accrual basis and cash basis accounting methods.

Anyone who wants a basic understanding of key concepts and terminology associated with businessaccounting.

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Reed Courses Certificate of Completion

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