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How to learn basic accounting?

Part – 2 – Learn Basic Accounting – Balance Sheet

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Frequently Asked Questions

How to learn basic accounting?

Part – 2 – Learn Basic Accounting – Balance Sheet

  • A Typical Balance Sheet
  • Assets –. Assets are a firm’s economic resources. ...
  • Current Assets and Long Term Assets. ...
  • Liabilities –. ...
  • Shareholder’s Equity –. ...
  • A = L + E
  • Common Stock and Retained Earnings.
  • Common Stock. ...
  • This is the most crucial LINK between the Balance Sheet and the Income Statement. ...

What is basic accounting?

What is included in basic accounting?

  • System of record-keeping. Companies must have a rational approach to record-keeping before they begin the accounting process. ...
  • Transactions. The accountant is responsible for generatinga number of business transactions, while others are forwarded to the accountant from other departments of a company.
  • Reporting. ...

What are the basic accounting terms?

These professionals should consider learning the following terms:

  • Accrual basis accounting
  • Cash basis accounting
  • Accounts payable
  • Accounts receivable
  • Certified public accountant

What are the basic principles of accounting?

What are the five basic principles of accounting?

  • Revenue principle. The revenue principle, also called the ‘revenue recognition principle', determines when accountants may record transactions as revenue in their books.
  • Expense principle. The expense principle is similar to the revenue principle, but it deals with expenditure. ...
  • Matching principle. ...
  • Cost principle. ...
  • Objectivity principle. ...


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