Accounting Fundamentals

This lecture covers the basics of accounting, focusing on concepts such as ledgers, debit and credit entries, rules for debits and credits, and the use of accounts. It also delves into specific transactions like investments, purchases, sales, and expenses, illustrating how they impact financial statements. The instructor explains the differences between merchandising and manufacturing businesses, detailing their operating cycles and inventory cost flows. Additionally, the lecture explores inventory valuation methods, cost accounting systems, and the classification of costs as direct or indirect. Through examples and exercises, students learn how to track inventory costs, evaluate performance, and manage resources effectively.