My Accounting Course.pdf - Financial Accounting Basics The field of accounting is often thought of as a set of complex business rules and endless

My Accounting Course.pdf - Financial Accounting Basics The...

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Financial Accounting Basics The field of accounting is often thought of as a set of complex business rules and endless numbers. Well in short, it is. I say that jokingly, though. Accounting, at its heart, is actually a set of very simple concepts and principles. Once you understand the basics of accounting, you will be able to grasp just about any business or accounting concept. I see it only fitting that we start our accounting training at the beginning with the purpose of financial accounting. This section of my accounting course explains the fundamentals of accounting like identifying business activities, recording transactions, and understanding the double entry accounting system. I walk you through the basics of accounts, journals, and ledgers as well as the financial statement elements. Essentially, the basics section will give you an understanding of the general accounting terms that are the building blocks of your accounting knowledge. Financial Accounting Basics The field of accounting is often thought of as a set of complex business rules and endless numbers. Well in short, it is. I say that jokingly, though. Accounting, at its heart, is actually a set of very simple concepts and principles. Once you understand the basics of accounting, you will be able to grasp just about any business or accounting concept. I see it only fitting that we start our accounting training at the beginning with the purpose of financial accounting. This section of my accounting course explains the fundamentals of accounting like identifying business activities, recording transactions, and understanding the double entry accounting system. I walk you through the basics of accounts, journals, and ledgers as well as the financial statement elements. Essentially, the basics section will give you an understanding of the general accounting terms that are the building blocks of your accounting knowledge. Financial Accounting What is Financial Accounting? Accounting in general deals with identifying business activities, like sales to customers, recording these activities, like journalizing, and communicating these activities with people outside the organization with financial statements. Financial accounting, however, is a subsection of the general field of accounting that focuses on gathering and compiling data in order to present it to external users in a usable form. So what does that mean? Basically, financial accounting’s main purpose is to provide useful financial information to people or groups outside of companies often called external users. Who Uses Financial Accounting? Unlike company management or internal users, external users of financial information are not directly involved in running the business or organization. They are outsiders to the business and only have limited information about companies’ operations, financial position, and well being. In other words, external users need financial information about companies in order to support their financial decisions.
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  • Fall '19
  • Balance Sheet, Generally Accepted Accounting Principles

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