LibGuides: Accounting: Basic Accounting Videos

Language of Accounting

Introductions and Definitions
When it comes to finances, “approximately” is just not good enough. Accounting professionals are expected to understand all the ins and outs of money matters, applying the rules of accountancy with good sense and care. With that in mind, this program starts with the basics, introducing the purpose of accounting, identifying the AICPA and FASB, explaining the concept of GAAP, and spelling out the differences between CPAs and CMAs. After contrasting three types of business organizations, the program moves on to the actual process of recording and tracking transactions. Types of business transactions, charts of accounts, journalizing and posting transactions, the rules of debits and credits, the purpose of the trial balance, and four main types of financial statements are described. The accounting equation is also presented. A Cambridge Educational Production. (15 minutes full video or shorter segments available for viewing option)

Introductions and Definitions - Full video (15mins)
The Language of Accounting (01:57)
Understanding the basics of accounting helps in all aspects of business. The four areas are collecting financial data of a business, recording, analyzing and then communicating it back to the business.
GAAP and FASB (01:48)
GAAP, the rulebook for accounting, lays out strict regulations for consistency. The FASB updates GAAP as needed. AICPA is a watchdog group for public accountants.
Two Types of Accountants (00:57)
The CPA, or Certified Public Accountant, does income taxes and offers financial advice. The CMA, or Certified Management Accountant, works for one business or not-for-profit company
Three Types of Businesses (01:44)
Sole Proprietorships make up the most businesses in the United States. Partnerships are the second type. Corporations are larger and do more transactions, the heart of accounting.
Transactions and Accounting Equation (02:06)
Assets equal liabilities plus owner's equity. Assets are things owned, including profit. Liabilities are the bills owed. Equity is the owner's claim to the business assets, including the profits.
Chart of Accounts (02:00)
The Chart of Accounts is the index of a company's assets, liabilities, and equity. The journal is a business diary of transactions. Posting is putting all transactions into a ledger.
Rule of Debits and Credits (00:43)
Debits and credits must always be equal. Accountants use a Trial Balance to prove this at the end of each period.
Financial Statements (01:41)
Income Statements report revenue and expenses. Balance Sheets report amount of assets, liabilities, and owner's equity. Owner's Equity and Statement of Cash Flow are two other reports.