Reviewer for basic accounting with practice problem

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