Basic Accounting Concepts

Basic Accounting Concepts explains the key accounting concepts, principles and terms in short, clear lessons.

34 topics with 14 diagrams and 40 ratio formulas in tables: from the accounting equation to GAAP and financial ratios.

Use it as a pocket reference: look up an accounting term, check what a ratio measures, or read a whole section in order. Every topic is written in plain language, with examples where they help.

What you will learn

Accounting Basics

• What accounting is and who uses it

• The Accounting Equation (assets = liabilities + equity)

• The Balance Sheet

• Double Entry Bookkeeping, with simple examples

• Profit and Loss Account

• Reporting Period and Conversion Period

Formulas and Ratios

• Operating cycle and cash conversion cycle

• Liquidity ratios: current ratio, quick ratio, cash ratio, working capital

• Profitability ratios and activity (turnover) ratios

• Financial leverage ratios

• Shareholder ratios and return ratios (ROA, ROE, ROCE) with the DuPont model

• Each formula with what it measures and how to read the result

Terms and Concepts

• Financial statements: balance sheet, income statement, cash flow statement and stockholders' equity

• Financial ratios

• Accounting principles and assumptions: historical cost, revenue recognition, matching, full disclosure, going concern, materiality, conservatism, consistency and more

• Bookkeeping, debits and credits

• Adjusting entries and bank reconciliation

• Petty cash, accounts receivable and bad debts expense, accounts payable

• Inventory and cost of goods sold

• Depreciation

• Cost behavior and break-even point

• Payroll accounting and standard costing

• Accounting pronouncements: GAAP, the FASB Codification and IFRS

• Accounting organizations such as the FASB, SEC, AICPA, IASB and IMA

Features

• 34 short topics in 3 sections, each readable in a few minutes

• 14 clear diagrams of key accounting concepts, such as the accounting equation, double entry and the cash flow statement

• 40 ratio formulas laid out in tables, with what each result means

• Search every accounting term and topic at once

• Previous and Next buttons to work through a section in order

• Clean design with dark mode

• All content is built into the app, so it works offline, with no account needed

• Available in 8 languages: English, Español, Português, Français, Deutsch, العربية, हिन्दी and Bahasa Indonesia

Who it is for

• Students in school, college and university accounting and business courses

• Beginners who want to understand accounting principles and financial statements

• Anyone who meets an accounting term at work and wants a quick, clear explanation

• Useful when revising for an introductory accounting or finance course

Basic Accounting Concepts is an independent study aid. It is not affiliated with the FASB, IASB or any other accounting body, exam board or university, and it does not replace your course textbook or professional advice.