Brain Bites – Business Accounting Basics, Part 2

Beginning with foundational terms and concepts and working through a step-by-step overview of each, this course will provide you with the knowledge you need to read the balance sheet, the income statement, and the statement of cash flows. 

You’ll learn how an account’s normal balance determines the effect of debits and credits on the account, and how financial accounts are organized in the chart of accounts.  

Reviewing the Balance sheet, you’ll learn how distinct types of assets, liabilities, and equity accounts are handled and how depreciation and amortization are applied. You’ll see how the income statement (P&L report) demonstrates an organization’s success through the recording of revenue and expenses and how the statement of cash flow reports records operating, investing, and financing activities during a specific accounting period.  

Topics covered include: 

• Explaining how the Accounting Equation relates to the balance sheet 
• Defining key terms associated with double-entry bookkeeping 
• Differentiating between normal debit balance and normal credit balance accounts 
• Identifying three main components of the balance sheet 
• Reading a balance sheet 
• Describing the use of Debits and Credits on Balance sheet accounts 
• Differentiating between fixed and intangible assets 
• Reading an income statement 
• Examining how an income statement demonstrates an organization’s success 
• Reading a statement of cash flows 
• Differentiating among three types of cash recorded on the statement of cash flows 

Enjoy high-quality HD content in the “Uniquely Engaging”TM Bigger Brains style with Brain Bites! 

Taught by top subject matter experts, Bigger Brains courses are professionally designed around key learning objectives, and include captions and transcripts in 29 languages, downloadable handouts, and optional LinkedIn digital badges on course completion.