Accounting Action!

  Home:   *   Email:

Hi, my name is B.N. Counter. Business is all about exchanging items of value. Accounting is essentially "a counting" of these transactions. It tells us whether a firm is doing well, how much it has and how much it owes. Since the days of simple bartering, accounting has become very complex, developing a vocabulary and procedures that can befuddle even the sharpest minds. In these lessons, we'll use stories, characters, and special tools to help Double Entry accounting make more sense to the casual student, business owner, or nonprofessional.




A Brief History of Accounting
Meet Drac & Crac, stone age traders who developed "a counting" system to keep track of their transactions. Along the way they invented the concepts of money, journals, and ledgers.

2 pages
Financial Fourteen
Although you may not yet be familiar with these fundamental accounting terms, memorize them word for word. Post the Wall Chart for easy reference and carry the Flash Cards to study. (Refer to "Additional Topics" below for more terms, concepts, forms, and methods.)

3 pages
Start A Business
What could you do or make that others would be willing to pay for? What items would you need to have on hand to provide that service or product? How would you pay for or "fund" those items? In this activity, your total startup costs must exactly match your total sources of money.

2 pages
Fundamental Accounting Equation: A = L + OE
Assets are funded from Liabilities plus Owners Equity, the basic formula of Double Entry Accounting. The confusion starts when things are perceived as being doubled. Only Assets are "real" in the truest sense.
Transaction Analysis: T-Accounting
The genius of Double Entry Accounting is that if each transaction debit entry is matched by a credit entry, the Fundamental Accounting Equation stays balanced. The trick is to analyze which accounts to debit and credit.
Umbrella T-Accounting: The Balance Family
This unique method of Transaction Analysis takes the guesswork out of "which side goes up?" by arranging T-accounts into a hierarchy of parent-child relationships arranged into account categories.
Balance Sheet Map
This one-page, multipurpose worksheet (journal, ledger, trial balance, income statement, balance sheet) lets you analyze and verify transactions before entering them into paper or computerized accounting forms.
Startup Transactions
Error Checking: 1A-9TS-OD
Correcting Entries
Trial Balance Worksheet
Accounting Cycle AcroMap
Accounting Cycle Flowchart
Additional Topics
Accounting Terms, Concepts, & Occupations
One of the more frustrating aspects of accounting is the ambiguous use of terminology, including job titles. Even accounting textbooks and firms don't always agree.
Accounting Forms
Like accounting terminology, accounting forms differ. This section illustrates the key elements of these standard forms: Chart of Accounts, Journal, Ledger, Trial Balance, Income Statement, Balance Sheet.
Accounting Methods
Cash vs. Accrual Accounting.
Single Entry vs. Double Entry accounting.
Subsidiary Ledgers & Controlling Accounts
Cash Flow Statement

Back to top

MaxLearning.Net 2016