Accounting Terms, Accounting Principles, Accounting Equation

Accounting Terms and Accounting Principles video introduces the foundational terminology necessary in accounting and business. This video introduces the distinction between financial accounting and managerial accounting. Accounting Terms and Accounting Principles briefly introduces accounting terms, accounting concepts and accounting principles with examples.

Accounting Terms and Accounting Principles video by TheAccountingDr at http://youtu.be/PDDGzBZlqy0

Find this video with complete transcript of lecture notes at http://theaccountingdr.hubpages.com/hub/Accounting-Equation

Other videos in this series:
Part 2 - The Accounting Equation
Part 3 - Revenue Recognition Principle and Matching Principle
Part 4 - Financial Statements





The Accounting Equation covers what the accounting equation is and how we use the accounting equation to solve for unknown amounts (i.e. assets, liabilities, owners' equity). In addition, there is a short description of retained earnings and how retained earnings is affected by net income and dividends.

Find this the accounting equation video with complete transcript of lecture notes at http://theaccountingdr.hubpages.com/hub/Accounting-Equation

The Accounting Equation video by TheAccountingDr @ http://youtu.be/x1fHKYRQdRk

Other videos in this series:
Part 1 - Accounting Terms and Accounting Principles
Part 3 - Revenue Recognition Principle and Matching Principle
Part 4 - Financial Statements




The Revenue Recognition Principle and Matching Principle video by TheAccountingDr at http://youtu.be/0mY5Vypn624 is an in-depth discussion on when revenue is recognized: revenue is recognized when earned and not necessarily when cash is received. The Matching Principle states that expenses are recorded when incurred and not necessarily when case is paid to ensure that expenses are matched in the appropriate period with the revenues those expenses created.

Find the Revenue Recognition Principle and Matching Principle video with complete transcript of lecture notes at http://theaccountingdr.hubpages.com/hub/Accounting-Equation

Other videos in this series:
Part 1 - Accounting Terms and Principles
Part 2 - The Accounting Equation
Part 4 - The Financial Statements





The Financial Statements video by TheAccountingDr at http://youtu.be/Q0pYOrgULdQ discusses the four financial statements, what the financial statements are made up of and how all the financial statements are related. There are four financial statements: Income Statement, Statement of Retained Earnings, the Balance Sheet and the Statement of Cash Flows. These financial statements have a relationship that not only binds them together but requires creation in a specific order.

Net income from the income statement is the difference between revenues and expenses. This number, net income, is then carried over to the statement of retained earnings to derive ending retained earnings. The ending retained earnings is then used in the owners' equity section of the balance sheet.

Recall that the balance sheet is also the accounting equation and can be presented in one of two forms: report form or account form.

Find this video with complete transcript of lecture notes at http://theaccountingdr.hubpages.com/hub/Accounting-Equation

Other videos in this series:
Part 1: Accounting Terms and Principles
Part 2: The Accounting Equation
Part 3: Revenue Recognition Principle and Matching Principle

2 comments:

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  2. Accounting equation suggests that for every debit there must be a credit. Assets, liabilities and owners’ equity are the three components of accounting equation that make up a company’s balance sheet.

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