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Accounting Basics

Accounting Basics (Explanation). Harold Averkamp CPA, MBA. Our materials are copyright AccountingCoach, LLC and are for personal use by the original purchaser only. We do not allow our materials to be reproduced or distributed elsewhere. Introduction to Accounting Basics This explanation of Accounting Basics will introduce you to some basic Accounting principles, Accounting concepts, and Accounting terminology. Once you become familiar with some of these terms and concepts, you will feel comfortable navigating through the explanations, quizzes, quick tests, video training, and other features on Some of the basic Accounting terms that you will learn include revenues, expenses, assets, liabilities, income statement, balance sheet, and statement of cash flows.

A Story for Relating to Accounting Basics We will present the basics of accounting through a story of a person starting a new business. The person is Joe Perez—a savvy man who sees the need for a parcel delivery service in his community. Joe has researched his idea and has prepared a business plan that documents the viability of his new business.

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Accounting Basics

www.accountingcoach.com

in the market value of property. Under the accrual method, these are reported on the income statement when they are earned. Sales and fees earned are examples. This financial statement reports a company’s financial position as of a moment of time. It reports the assets, liabilities and stockholders’ (or owner’s) equity.

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Accounting Cheat Sheet

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Your AccountingCoach PRO membership includes lifetime access to all of our materials. Take a quick tour by visiting www.accountingcoach.com/quicktour.

  Sheet, Accounting, Teach, Accountingcoach, Accounting cheat sheet

Chart of Accounts - AccountingCoach.com

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A chart of accounts is a listing of the names of the accounts that a company has identified and made available for recording transactions in its general ledger. A company has the flexibility to tailor its chart of accounts to best suit its needs, including adding accounts as needed.

  Account, Accountingcoach

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