Introduction to Accounting

This lesson provides an introduction to accounting, which should be valuable for students taking business associations, corporations, and other transactional courses. It covers the basic understanding of the balance sheet, income statement, and depreciation with an eye to using accounting information for valuation.

Learning Outcomes

On completion of the lesson, the student will be able to:

1. Discuss why a basic understanding of financial accounting is useful to lawyers.
2. State the fundamental equation of accounting.
3. Explain the relationship between market value and book value.
4. List the information found on an income statement.
5. Define depreciation.
6. Explain the difference between accounting and valuation.
7. List the ratios used to compare businesses and describe them.