Basic Accounting

Introduction to Accounting

The following 5 chapters on AccountingLingo provide a general overview of accounting.  They can be read in a single sitting or reading one per day may be best if a slower pace is desired.  Each chapter is a 10-20 minute read.

Chapter 1

Why is Accounting Important?

Topics Covered:

  • Understanding Accounting
  • Types of Accounting
  • Accounting Careers
  • Where Accountants Work
  • Why Work in Accounting?

Chapter 2

What are Accounting Principles?

Topics Covered:

  • Principles Reasoning
  • The Three Cs
  • Commonly used Principles
  • What is GAAP?
  • 10 Key Principles of GAAP
  • What is IFRS?
  • IFRS vs GAAP Differences
  • Principles Origination
  • GAAP Principles by Hierarchy

Chapter 3

What are Financial Statements?

Topics Covered:

  • Purpose of Statements
  • The Balance Sheet
  • The Income Statement
  • The Cash Flow Statement
  • Shareholder Equity Stmt.
  • Comprehensive Income Stmt.
  • Non-Profit Financial Stmt.
  • Consolidated Financial Stmt.
  • Limitations and Disadvantages
  • Benefits and Advantages
  • Financial Ratio Calculations
  • Standards and Regulations
  • Audit and Legal
  • Analysis and Discussion
  • Notes Throughout Statements
  • Reading Financial Statements
  • Personal Financial Statements

Chapter 4

What is an Asset?

Topics Covered:

  • Understanding an Asset
  • Characteristics of an Asset
  • Tangible vs Intangible
  • Asset Types
  • Classification of an Asset
  • Assets in Accounting

Chapter 5

What are Liabilities?

Topics Covered:

  • Characteristics of a Liability
  • Understanding Liabilities
  • Liabilities in Accounting
  • Types of Liabilities
  • Liabilities Example
  • Ratios using Current Liabilities
  • Assets vs Liabilities vs Equity
  • Debits and Credits
  • Liabilities vs Expenses
  • Identifying a Liability
  • Current Liabilities vs Long-Term
  • What is a Contingent Liability?
  • Liabilities of Individuals
  • Are Liabilities Good to Have?
  • Other Definitions of a Liability
  • What is Liability Insurance?

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