This explanation of accounting basics will introduce you to some basic accounting principles, accounting concepts, and accounting terminology. Once you become familiar with some of these terms and concepts, you will feel comfortable navigating through the explanations, quizzes, puzzles, and other features of AccountingCoach.com. (In AccountingCoach PRO you will also find videos, visual tutorials, exam questions, and forms to assist you.)
Some of the basic accounting terms that you will learn include
revenues, expenses, assets, liabilities, income statement, balance
sheet, and statement of cash flows. You will become familiar with
accounting debits and credits as we show you how to record transactions.
You will also see why two basic accounting principles, the revenue
recognition principle and the matching principle, assure that a
company's income statement reports a company's profitability.
In this explanation of accounting basics, and throughout all of the free materials and the PRO materials—we will often omit some accounting details and complexities in order to present clear and concise explanations. This means that you should always seek professional advice for your specific circumstances.
In this explanation of accounting basics, and throughout all of the free materials and the PRO materials—we will often omit some accounting details and complexities in order to present clear and concise explanations. This means that you should always seek professional advice for your specific circumstances.