Unit 1 · 7 lessons
The World of Accounting
What accounting is, who uses it, how businesses are organized, the rules accountants follow, and the balance sheet that ties it all together.
- 50 practice questions
- 51 flashcards
- 1 interactive lesson
Lessons
- 1What Is Accounting?Accounting is the information system that turns a business's transactions into numbers that people can make decisions with.8 questions
- 2Forms of Business OrganizationEvery business is legally organized as a sole proprietorship, a partnership, a corporation, or a non-profit/co-operative — and the choice changes who is liable for the debts.8 questions
- 3GAAP: The Rules Behind the NumbersGenerally Accepted Accounting Principles (GAAP) are the shared rules that make financial statements comparable, honest, and consistent from business to business.8 questions
- 4The Balance Sheet and the Accounting EquationThe balance sheet is a snapshot of what a business owns and owes on a specific date, built on the equation Assets = Liabilities + Owner's Equity.Interactive8 questions
- 5Accounts Receivable and Accounts PayableAccounts receivable and accounts payable are the two everyday balances created when a business buys or sells on credit instead of for cash.6 questions
- 6Ethics, Audits, and Careers in AccountingAccountants control information that other people rely on to make real decisions, which is why ethics, audits, and professional designations matter so much in this field.6 questions
- 7Technology in AccountingComputers changed how transactions are entered and reported, but they didn't change the underlying rules — accounting principles still decide what gets recorded and why.6 questions