Key Bookkeeping Tasks & Account Titles

Week 1 Finals: Key Bookkeeping Tasks

• Bookkeeping involves recording business transactions in the business's books.
• Bookkeeping entails the chronological writing or recording of business transactions and events in the books of accounts for the first time.
• A journal is the book of original entry where business transactions are chronologically recorded for the first time.
• Account titles provide a description of the type and nature of business transactions.

The 5 Categories of Account Titles/Accounting Elements:

• Asset Account Titles
• Liability Account Titles
• Capital Account Titles
• Income Account Titles
• Expense Account Titles

Asset Account Titles

• Cash describes money in paper or coins.
• Accounts receivables describes collectibles from customers who made sales transactions on credit.
• Notes receivables describes collectibles supported by a promissory note.
• Supplies on hand describes unused office or store supplies.
• Unused factory supplies describes unutilized manufacturing supplies.
• Inventory describes unsold goods intended for sale.
• Equipment describes tools and equipment like calculators, computers, or any equipment directly related to production.
• Furniture & fixtures describes assets like chairs, tables, and display cases.

Liability Account Titles

• Accounts payable describes financial obligations arising from goods purchased or services received.
• Notes payable describes financial obligations supported with notes that promise to pay a specific amount of money at a specific future date.
• Utilities payable describes unpaid obligations on light and water consumption.
• Salaries payable describes unpaid salaries of workers

Capital Account Titles

• Capital describes the original and additional investment of the owner.
• Drawing describes the temporary withdrawal of capital by the owner and is also considered a loss in assets and capital.

Income Account Titles

• Service income describes income from general services rendered.
• Rental income describes income arising from the lease or rent of property.
• Sales describes the sale of goods or products to customers.

Expense Account Titles

• Salaries and wages describes expenses on payments or salaries.
• Store supplies expense describes expenses on store supplies.
• Taxes and licenses describes expenses on taxes and licenses.
• Utilities expense describes expenses on light and water
• Travelling expense describes expenses on transportation or fare of personnel.

Common Types of Business Documents that Support Transactions and Events

• Purchase order: an official business document issued by the buyer to the seller of goods to place an order to the vendor.
• Invoice: a commercial document issued by a seller relating to a sale transaction and indicating the products, quantities, and agreed-upon prices for products or services provided to the buyer.
• Official receipt: a commercial document that indicates payment or receipt of cash.
• Delivery receipt: a document that serves as evidence that goods or services have been received.
• Receiving report: a document used within the business upon receipt of goods shipped by the courier or forwarder.
• Check: a document that orders a payment of money from the current account maintained in the bank.
• Voucher: an internal business document that authorizes the incurrence or payment of obligations.

Week 2

• Identify the reasons for keeping business records.
• Presentation and oral recitation of the Book Keeping record made last week.

Week 3

• Week 3 Finals activity to evaluate variables that affect supply.

Variables That Affect Supply/Determinant of Supply

• If resource costs increase, supply will decrease; if resource costs decrease, supply will increase.
• If the price of a substitute good increases, supply will decrease; if the price of a substitute good decreases, supply will increase.
• If a tax is levied (imposed), supply will decrease; if a subsidy (a sum of money granted to support) is granted, supply will increase.
• If technology improves, supply will increase.
• If consumers expect the future price of a good to increase, supply will decrease; if consumers expect the future price of a good to decrease, supply will increase.
• If the number of suppliers increases, supply will increase; if the number of suppliers decreases, supply will decrease.
• Anything that makes it harder or more expensive to produce a good will cause the supply curve to shift left.
• Anything that makes it easier or less expensive to produce a good will cause the supply curve to shift right.

Week 4

• Week 4 Finals activity to identify where there is a profit or loss for a business.

Variables That Will Shift Demand (T.R.I.B.E.)

• A change in Taste, Related goods, Income, Buyer (number of ), or Expected future prices will mean a change in demand.
• If popular opinion favors a good, demand will increase; if popular opinion goes against a good, demand will decrease.
• With substitute goods A and B, if price of good A increases, demand for good B increases, and if price of good A decreases, demand for good B decreases.
• With complementary goods A and B, if price of good A increases, demand for good B decreases, and if price of good A decreases, demand for good B increases.
• If the number of buyers increases, demand will increase; if the number of buyers decreases, demand will decrease.
• If customers expect the future price of a good to increase, demand will decrease.
• If customers expect the future price of a good to decrease, demand will increase.
• If consumer incomes are expected to increase in the future, demand will increase; if consumer incomes are expected to decrease in the future, demand will decrease.