INSTRUCTIONS: Please connect to the Zoom Meeting below at the beginning of class. Call 215-552-0999 if you have any difficulty. You will need a phone, a computer with an internet connection, and something to take notes with.
Join Zoom Meeting
https://us06web.zoom.us/j/81536452615
Section 1: Accounting Overview
The Four Major Types of Accounting:
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- Bookkeeping
- Financial Accounting
- Managerial Accounting
- Tax Accounting
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Section 2: Bookkeeping
The Bookkeeping process has four steps:
Step 1: Transaction
Step 2: Journal
Step 3: Ledger
Step 4: Reports
Samples for Reference:
Section 3: Reports
Financial Reports: Balance Sheet, Income Statement, Statement of Cash Flows
Managerial Reports: Budget, Costing, Breakeven Analysis, Performance Evaluation, etc.
Tax Reports: Federal, State, Local
Section 4: The Balance Sheet
Accountants Equation:
Assets = Liability + Equity
Example 1: Craig deposits $1,000 to start his company
| ASSETS | LIABILITIES | EQUITY |
| $1,000 | $1,000 |
Example 2: Craig receives a $1,000 loan
| ASSETS | LIABILITIES | EQUITY |
| $1,000 | $1,000 | |
| $1,000 | $1,000 |
Example 3: Craig repays $500 towards the loan
| ASSETS | LIABILITIES | EQUITY |
| $1,000 | $1,000 | |
| $1,000 | $1,000 | |
| -$500 | -$500 |
Income Statement (P&L):
Income – Expenses = Profit or Loss
Example 1: Profit
$10,000 – $6,000 = $4,000 (profit)
Example 2: Loss
$10,000 – $12,000 = -$2,000 (loss)
Please note: the Income Statement is a subcategory of Equity in the Balance Sheet
Section 5: Accounts
- Asset
- Liability
- Equity
- Income
- Expense
Sample List of Accounts by Type
Section 6: QuickBooks Online Test Drive
qbo.intuit.com/redir/testdrive