Tips to Learn Accounting

• Many students study accounting while attending college. Business owners learn accounting as needed for their business. However, the process of learning accounting offers challenges for both students and business owners as they attempt to understand accounting concepts. A few tips can help ensure that both students and business owners learn the basics quickly and thoroughly.

Remember Debits and Credits

• Debits and credits form the foundation of accounting records. Accounts that increase with a debit entry have a normal debit balance. Accounts that increase with a credit entry have a normal credit balance. The challenge comes from remembering which accounts have normal debit balances and normal credit balances.

  Create a memorable phrase using the first letters of each account as a way of remembering. The first letters in each word of the phrase "angry elephants die, lonely rodents cry" match the first letters of different account types. The first three letters, A, E and D, correlate to the first letters of assets, expenses and drawing, which all have a normal debit balance. The last three letters, L, R and C, correlate to the first letters of liabilities, revenue and capital, which all have a normal credit balance.

Monopoly

• Gather a group of accounting students together and play a game of Monopoly. This game helps reinforce several concepts learned in the classroom and apply accounting practices to the financial transactions taking place in the game. Each player sets up an accounting system for his own finances, and keeps a general journal and individual t-accounts. No money changes hands in this game. Every player records a beginning balance of $2,000 in cash, $600 in owner's capital and $1,400 in notes payable. When the first player takes a turn, he updates his own accounting records. He records a journal entry and updates the balance in the appropriate t-accounts. Each round constitutes one month of the year. After twelve rounds, the players create a set of financial statements based on their individual transactions.

Identify Challenging Topics

• Accounting encompasses many subtopics; the sheer variety can overwhelm some learners.

  Identifying which subtopics you struggle with allows you to focus on specific areas rather than feel overwhelmed. Several websites offer free quizzes, crossword puzzles and word scrambles where you can pinpoint which areas you understand and which areas you need to work on more. You can choose from a variety of subtopics, like accounting equation, bonds payable and financial ratios. You can also complete crossword puzzles online testing your knowledge of accounting terminology. Word scrambles require you to rearrange letters to match an accounting term to the clue.