BASIC ACCOUNTING REVIEWER
LESSON 1: INTRODUCTION TO ACCOUNTING
What is Accounting?
Accounting is the process of identifying, recording, and communicating financial information.
Accounting as a Science
Uses systematic steps and follows rules like GAAP and IFRS.
Accounting as an Art
Requires judgment and decision-making.
Accounting Process:
Identifying, Recording, Classifying, Summarizing, Analyzing, Interpreting, Communicating (IRCS
AIC)
LESSON 2: USERS
Internal: Owners, Management, Employees
External: Creditors, Government, Suppliers, Public
LESSON 3: BRANCHES
Public, Private, Government, Financial, Managerial, Cost, Tax, Forensic
LESSON 4: PRINCIPLES
Accrual, Matching, Consistency, Reliability, Objectivity, Time Period, Prudence
LESSON 5: ACCOUNTS
Assets, Liabilities, Equity, Income, Expenses
LESSON 6: EQUATION
Assets = Liabilities + Equity
LESSON 7: DEBIT & CREDIT
DEALER rule:
Assets/Expenses/Drawings increase with Debit
Liabilities/Equity/Revenue increase with Credit
LESSON 8: BOOKS
Journal = first record
Ledger = organized accounts
LESSON 1: INTRODUCTION TO ACCOUNTING
What is Accounting?
Accounting is the process of identifying, recording, and communicating financial information.
Accounting as a Science
Uses systematic steps and follows rules like GAAP and IFRS.
Accounting as an Art
Requires judgment and decision-making.
Accounting Process:
Identifying, Recording, Classifying, Summarizing, Analyzing, Interpreting, Communicating (IRCS
AIC)
LESSON 2: USERS
Internal: Owners, Management, Employees
External: Creditors, Government, Suppliers, Public
LESSON 3: BRANCHES
Public, Private, Government, Financial, Managerial, Cost, Tax, Forensic
LESSON 4: PRINCIPLES
Accrual, Matching, Consistency, Reliability, Objectivity, Time Period, Prudence
LESSON 5: ACCOUNTS
Assets, Liabilities, Equity, Income, Expenses
LESSON 6: EQUATION
Assets = Liabilities + Equity
LESSON 7: DEBIT & CREDIT
DEALER rule:
Assets/Expenses/Drawings increase with Debit
Liabilities/Equity/Revenue increase with Credit
LESSON 8: BOOKS
Journal = first record
Ledger = organized accounts
