Brain Bites – Business Accounting Basics, Part 2

Learn the basics of three key financial accounting reports. Beginning with foundational terms and concepts and working through a step-by-step overview of each, this course will provide you with the knowledge you need to read the balance sheet, the income statement, and the statement of cash flows. 

You’ll learn how an account’s normal balance determines the effect of debits and credits on the account, and how financial accounts are organized in the chart of accounts.  

Reviewing the Balance sheet, you’ll learn how distinct types of assets, liabilities, and equity accounts are handled and how depreciation and amortization are applied. You’ll see how the income statement (P&L report) demonstrates an organization’s success through the recording of revenue and expenses and how the statement of cash flow reports records operating, investing, and financing activities during a specific accounting period.