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Accounting Basics and Definitions
What do GAAP and OCBOA mean? What are revenues, expenses, assets, and liabilities? What are the stages of the accounting cycle? This video answers those questions and many others as it introduces viewers to the process of accounting as illustrated by a cupcake shop and a medical clinic. Sections include: Importance of Accurate Accounting, Basic Accounting Terms, Financial Reporting, Income Statements, Balance Sheets: Assets, Balance Sheets: Liabilities and Owner Equity, and Statements of Cash Flows. A Films for the Humanities & Sciences/MotionMasters Coproduction. A part of the series Accounting Fundamentals. (30 minutes)
Video in Segments - Accounting Basics and Definitions
Purpose of Accounting (01:08)
Learn why accurate accounting is essential for business success.
Importance of Accurate Accounting (03:34)
The terms CPA, GAAP, FASB, OSBA, IASB, and SOX are defined. The importance of rules and regulations is emphasized
Basic Accounting Terms (02:43)
Revenues, expenses, assets, and liabilities are defined and explained. Examples are given of each.
Financial Reporting (03:05)
Chart of accounts, journal, trial balance, and financial statements are defined and explained. Examples are given of each. The accounting cycle is a process of recording and reporting transactions.
Income Statements (06:06)
The purpose of this financial document is explained. Transactions must be recorded. The separation of duties is necessary for accurate accounting. Cash method and accrual basis reporting are explained.
Balance Sheets: Assets (06:03)
The purpose of this financial document is explained. Intangible assets include accounts receivable and prepaid expenses. The concepts of conservatism and depreciation are defined.
Balance Sheets: Liabilities and Owners' Equity (02:33)
Liabilities and stockholder or owners' equity are defined and explained with examples.
Statement of Cash Flows (02:28)
The purpose of this financial statement is explained. Operating, financing, and investing activities are defined. Examples are given of each.
Hear a brief overview of accounting terms