Bookkeeping Basics #2: Understand The Mechanics
What you'll learn
- Understand what "debits" and "credits" actually mean when it comes to bookkeeping and accounting
- Learn the Fundamental Accounting Equation and how it applies to bookkeeping
- How are transactions analyzed, recorded and posted
- What steps are needed for End-of-the-Month adjustment entries and End-of-the-Year closing entries
- What is depreciation? What are Prepaid Items? What is Accrued Payroll? How is Inventory booked?
- As long as you know how to add and subtract (or can use a calculator!), you're ready to begin!
NASBA CPE accredited course
National Association of State Boards of Accountancy (NASBA)
NASBA CPE credits: 5.4
Recommended NASBA field of study: Accounting
Program level: Basic
To earn NASBA CPE credits:
- Complete all videos
- Score 70% or higher on final exam
Glossary: Find PDF attached to the first lecture of this course.
Completion to obtain CPE should be accomplished a year after purchase date.
If you undertake this course for NASBA CPE credits, please complete the Self Study Course Evaluation.
Using simple, easy-to-understand discussion, illustrations and note sheets, this focused course with video lessons teaches you the basic understanding of the financial tools "debits" and "credits" along with allowing you to put your learning into practice.
Everyday examples, using common phrases and terms you already know, allows the instructor to break through the confusion and teach the concept and use of the tools on which everything else in bookkeeping and accounting is built. Then as each new concept is introduced, you will have the opportunity to apply those points using a short, customized practice activity. After completing your work, Ron will walk through the steps to allow you to understand what has taken place and identify areas you may need more practice or a better understanding.
After completing the course, students will feel more confident and knowledgeable on topics such as...
What's the difference between debits and credits
When does each one mean an increase versus a decrease
How do they relate to assets, liabilities and equity
Also, how do they relate to income and expenses
What is a T-Account and how is it used in bookkeeping
What is an EASY way to remember when to use "debit" and use "credit"
This course works in conjunction with other courses in the series including:
an overview of the basic fundamentals of how bookkeeping works for small businesses
a complete practice set that allows you to put all the new learning into use
an overview of the largest small-business software in the world
and a course specifically designed to connect the concepts with personal finance.
CPE (Continuing Professional Education)
Understand the main components of the Fundamental Accounting Equation
Distinguish between bookkeeping accounts that increase as debits and ones that increase as credits
Discuss the process of footing and balancing accounting T-accounts/ledgers
Explain the Accounting Cycle’s steps
Define the difference between Interim and Final financial reports
Recognize the need for Adjusting activities and Closing activities in the Accounting Cycle
Demonstrate the differences in recording adjusting entries for depreciation, accrued liabilities, inventory tracking, and prepaid assets
Explain why annual bookkeeping records are closed each year
List which types of accounts are closed, and which types remain open during the closing process
For more information regarding administrative policies, please contact our support using the Help and Support link at the bottom of this page.
Who this course is for:
- This course is designed for both new and established small business owners and managers who may be strong in their own fields but want a better understanding of the basic concepts of tracking their company finances as well as students beginning the journey of learning bookkeeping.
Over 25 years ago, after building his experience in the hospitality industry and working with business start-ups around the country, Ron Trucks founded his privately owned firm guiding and coaching small businesses and non-profit organizations in a wide variety of fields and industries both in his hometown of St. Louis, MO and across the country.
In addition to his professional work in small-business support, Ron has also been an Business Management adjunct instructor at Jefferson College in Hillsboro, MO for over 15 years.
Over those two-plus decades of both teaching and coaching small businesses and non-profit organizations, Ron has served on various boards and in many volunteer positions including the Board of Directors of a $500 million dollar credit union, developing leadership skills with members of national fraternities and sororities, and working with troubled youth dealing with identity and self-confidence issues.