9/6/2018 Accounting Basics | Explanation | AccountingCoach

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How to Begin (Video)

01. Accounting Basics Accounting Basics

02. Debits and Credits
(Explanation)
03. Chart of Accounts
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04. Bookkeeping

05. Accounting Equation

06. Accounting Principles

07. Financial Accounting

08. Adjusting Entries Edukasi pintar berinvestasi - dari FBS OPEN

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09. Financial Statements

10. Balance Sheet

11. Income Statement

Part 1 Introduction to Accounting Basics, A Story for Relating to Accounting Basics
12. Cash Flow Statement
Part 2 Income Statement
13. Financial Ratios
Part 3 Balance Sheet – Assets
14. Bank Reconciliation
Part 4 Balance Sheet – Liabilities and Stockholders' Equity
15. Accounts Receivable and Bad
Debts Expense
Part 5 Statement of Cash Flows, Double Entry System, Sample Transaction #1
16. Accounts Payable
Part 6 Sample Transactions #2 - #3
17. Inventory and Cost of Goods Sold
Part 7 Sample Transactions #4 - #6
18. Depreciation

19. Payroll Accounting

20. Bonds Payable

Introduction to Accounting Basics
21. Stockholders' Equity
This explanation of accounting basics will introduce you to some basic accounting principles, accounting concepts,
22. Present Value of a Single Amount and accounting terminology. Once you become familiar with some of these terms and concepts, you will feel
comfortable navigating through the explanations, quizzes, puzzles, and other features of AccountingCoach.com.
23. Present Value of an Ordinary
Annuity
Some of the basic accounting terms that you will learn include revenues, expenses, assets, liabilities, income
statement, balance sheet, and statement of cash flows. You will become familiar with accounting debits and credits
24. Future Value of a Single Amount
we show you how to record transactions. You will also see why two basic accounting principles, the revenue
25. Nonprofit Accounting recognition principle and the matching principle, assure that a company's income statement reports a company's
profitability.
26. Break-even Point
In this explanation of accounting basics, and throughout all of the free materials and the PRO materials—we will oft
27. Improving Profits
omit some accounting details and complexities in order to present clear and concise explanations. This means that
you should always seek professional advice for your specific circumstances.
28. Evaluating Business Investments

29. Manufacturing Overhead Did you know? To make accounting even easier to understand, we created a collection of premium materials calle
AccountingCoach PRO. Our PRO users get lifetime access to our visual tutorials, seminar videos, cheat sheets,
30. Nonmanufacturing Overhead flashcards, quick tests, quick tests with coaching, business forms, and more.

31. Activity Based Costing

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32. Standard Costing

33. Accounting Careers

Certificates of Achievement A Story for Relating to Accounting Basics

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9/6/2018 Accounting Basics | Explanation | AccountingCoach
We will present the basics of accounting through a story of a person starting a new business. The person is Joe Pe
—a savvy man who sees the need for a parcel delivery service in his community. Joe has researched his idea and
Course Outline Search any accounting term... PRO Features Log In
has prepared a business plan that documents the viability of his new business.

Joe has also met with an attorney to discuss the form of business he should use. Given his specific situation, they
concluded that a corporation will be best. Joe decides that the name for his corporation will be Direct Delivery, Inc.
All Topics Suggested The attorney also advises Joe on the various permits and government identification numbers that will be needed fo
the new corporation.

How to Begin (Video)

Joe is a hard worker and a smart man, but admits he is not comfortable with matters of accounting. He assumes he
will use some accounting software, but wants to meet with a professional accountant before making his selection. H
asks his banker to recommend a professional accountant who is also skilled in explaining accounting to someone
without an accounting background. Joe wants to understand the financial statements and wants to keep on top of h
new business. His banker recommends Marilyn, an accountant who has helped many of the bank's small business
customers.

Note: To learn about the roles of accountants and CPAs visit our free Accounting Career Center.

At his first meeting with Marilyn, Joe asks her for an overview of accounting, financial statements, and the need for
accounting software. Based on Joe's business plan, Marilyn sees that there will likely be thousands of transactions
each year. She states that accounting software will allow for the electronic recording, storing, and retrieval of those
many transactions. Accounting software will permit Joe to generate the financial statements and other reports that h
will need for running his business.

Joe seems puzzled by the term transaction, so Marilyn gives him five examples of transactions that Direct Delivery,
Inc. will need to record:

1. Joe will no doubt start his business by putting some of his own personal money into it. In effect, he is buying
shares of Direct Delivery's common stock.
2. Direct Delivery will need to buy a sturdy, dependable delivery vehicle.
3. The business will begin earning fees and billing clients for delivering their parcels.
4. The business will be collecting the fees that were earned.
5. The business will incur expenses in operating the business, such as a salary for Joe, expenses associated w
the delivery vehicle, advertising, etc.

With thousands of such transactions in a given year, Joe is smart to start using accounting software right from the
beginning. Accounting software will generate sales invoices and accounting entries simultaneously, prepare
statements for customers with no additional work, write checks, automatically update accounting records, etc.

By getting into the habit of entering all of the day's business transactions into his computer, Joe will be rewarded wi
fast and easy access to the specific information he will need to make sound business decisions. Marilyn tells Joe th
accounting's "transaction approach" is useful, reliable, and informative. She has worked with other small business
owners who think it is enough to simply "know" their company made $30,000 during the year (based only on the fac
that it owns $30,000 more than it did on January 1). Those are the people who start off on the wrong foot and end u
in Marilyn's office looking for financial advice.

If Joe enters all of Direct Delivery's transactions into his computer, good accounting software will allow Joe to print o
his financial statements with a click of a button. In Parts 2 through 7 Marilyn will explain the content and purpose of
the three main financial statements:

1. Income Statement
2. Balance Sheet
3. Statement of Cash Flows

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Certificates of Achievement
We now offer three Certificates of Achievement for Introductory Accounting an
Bookkeeping. The certificates include Debits and Credits, Adjusting Entries, a
Financial Statements. Click here to learn more.

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How to Begin (Video)

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