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Matching Concept and Accounting Cycle
All businesses understand that it’s vital to keep accurate records and monitor them on a regular basis. After watching this video, viewers will have a grasp of the matching concept, which helps avoid misstated earnings for a period, and the accounting cycle, which helps identify errors and provide the data needed for income statements and balance sheets. Sections include: Cash Basis vs. Accrual Basis, The Matching Concept, The Accounting Cycle, and The Accounting Cycle Quick Review. A home-based online gift basket business, a software company, a car repair shop, and a hair salon serve as examples. A Films for the Humanities & Sciences/MotionMasters Coproduction. A part of the series Accounting Fundamentals. (30 minutes)
Video in Segments - Matching Concept and Accounting Cycle
Cash Basis vs. Accrual Basis (02:37)
Income statements can be created in two ways. See examples of a business using cash basis and a business using accrual basis.
The Matching Concept (05:51)
Learn the elements of the matching concept, based on the accrual basis. Vocabulary includes overstated profits, revenue versus expenses, deferred expenses, accruals, and depreciation
The Accounting Cycle (02:34)
Accounting cycles are monthly, quarterly, semi-annually, or annually. Learn the eight steps that take place during an accounting period.
The Accounting Cycle in Action (05:19)
Learn the first four steps of the accounting cycle. Vocabulary includes journal entries, ledger, unadjusted trial balance, and adjusting entries.
The Accounting Cycle in Action: II (04:17)
Learn the last four steps of the accounting cycle. Vocabulary includes adjusted trial balance, financial statements- income statement-balance sheet-cash flow statement, closing entries, and post-closing trial balance.
The Accounting Cycle Quick Review (02:46)
Review the eight steps of the accounting cycle and its importance.