Brain Bites – Business Accounting Basics Part 1

Topics covered include: 

• Describing the Accounting Equation (Assets = Liabilities + Equity)  
• Discussing assets, liabilities, and equity 
• Explaining the role of debits and credits in double entry accounting 
• Differentiating between normal debit balance and normal credit balance accounts 
• Identifying the three primary financial statements and their specific purposes 
• Explaining the purposes of the Chart of Accounts, the General Journal, and the General Ledger 
• Describing the function of organizational numbering systems 
• Explaining the difference between a calendar year and a fiscal year 
• Differentiating between the accrual basis and cash basis methods of accounting