Course Outline
Join PRO

Accounting Basics (Crossword Puzzles)

Author:
Harold Averkamp, CPA, MBA

Accounting Basics #1

Open Online Open PDF

Accounting Basics #2

Open Online Open PDF

In commercial enterprises accounting is involved in recording business transactions and then reporting the results in the form of financial statements.

To make the financial statements more understandable, there are some common rules known as generally accepted accounting principles (GAAP). In the USA the lead organization for researching and issuing the accounting rules is the Financial Accounting Standards Board (FASB).

All of the accounting rules are based on some underlying or basic accounting principles such as cost, matching, economic entity, going concern, revenue recognition, full disclosure, materiality, conservatism, and others. Accountants also strive for the financial reporting to be relevant and reliable.

The accounting system is known as double entry, because every transaction will involve at least two accounts in a company’s general ledger. The accounting system requires that at least one account be debited (amount entered on the left side) and one account be credited (amount entered on the right side).

The accrual basis of accounting provides a better picture of a company’s financial results than the cash basis of accounting. Under the accrual basis of accounting, revenues and assets are reported when they are earned; expenses and liabilities are reported when they are incurred.

The output of the accounting system includes five financial statements:

  • Balance sheet or statement of financial position
  • Income statement, statement of earnings, statement of operations, or profit and loss (P&L)
  • Statement of comprehensive income
  • Statement of cash flows or cash flow statement
  • Statement of stockholders’ equity

The balance sheet reports a corporation’s assets, liabilities, and stockholders’ equity as of the final moment of the accounting period. The other financial statements report the amounts that occurred during a specified accounting period.

The notes to the financial statements are required to disclose important information not communicated by the amounts on the face of the financial statements.

Must-Watch Video

Advance Your Accounting and Bookkeeping Career

  • Perform better at your job
  • Get hired for a new position
  • Understand your small business
  • Pass your accounting class
Watch the Video

Join PRO or PRO Plus and Get Lifetime Access to Our Premium Materials

Read all 2,645 reviews

Features

PRO

PRO Plus

Features
Lifetime Access (One-Time Fee)
Explanations
Quizzes
Q&A
Word Scrambles
Crosswords
Bookkeeping Video Training
Financial Statements Video Training
Flashcards
Visual Tutorials
Quick Tests
Quick Tests with Coaching
Cheat Sheets
Business Forms
All PDF Files
Progress Tracking
Earn Badges and Points
Certificate - Debits and Credits
Certificate - Adjusting Entries
Certificate - Financial Statements
Certificate - Balance Sheet
Certificate - Income Statement
Certificate - Cash Flow Statement
Certificate - Working Capital
Certificate - Financial Ratios
Certificate - Bank Reconciliation
Certificate - Payroll Accounting

About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

Learn More About Harold

Certificates of
Achievement

Certificates of Achievement

We now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping:

  • Debits and Credits
  • Adjusting Entries
  • Financial Statements
  • Balance Sheet
  • Income Statement
  • Cash Flow Statement
  • Working Capital and Liquidity
  • Financial Ratios
  • Bank Reconciliation
  • Payroll Accounting
Badges and Points
  • Work towards and earn 30 badges
  • Earn points as you work towards completing our course
View PRO Plus Features
Course Outline
Take the Tour Join Pro Upgrade to Pro Plus