Chapter 1.pptx

Learning Goals Let’s turn the following curriculum expectations into student friendly learning goals. 1 explain the purpose of accounting; explain the difference between accounting and bookkeeping; describe the characteristics of different forms of business organization Accounting 1, 7th edition Acc...

Learning Goals Let’s turn the following curriculum expectations into student friendly learning goals. 1 explain the purpose of accounting; explain the difference between accounting and bookkeeping; describe the characteristics of different forms of business organization Accounting 1, 7th edition Accounting and Business Accounting 1, 7th edition 1 Agenda Vocabulary  Success Criteria  1.1 What is Accounting?  1.2 Why Study Accounting?  1.3 Characteristics of Business  1.4 The Nature of Accounting  1.5 Becoming an Accountant (Separate Unit)  1.6 Roles in Accounting  3 Accounting 1, 7th edition Vocabulary accountant accounting Accounting clerk Accounting cycle auditing bookkeeping corporation Fiscal period 4 Accounting 1, 7th edition Manufacturing business Merchandising business Non-profit organization Partnership Professional accountant Service business Sole proprietorship Success Criteria (1) Explain the purpose of accounting (2) Explain the benefits of having a background in accounting (3) List the four kinds of business and three forms of business ownership (4) Understand what is meant by the accounting cycle (5) Differentiate between accounting and bookkeeping External reference: https://www.iasplus.com/en/standards/other/framework 5 Accounting 1, 7th edition Section 1.1 WHAT IS ACCOUNTING? 6 Accounting 1, 7th edition Hey you, class! What is Accounting? Accounting is a system of dealing with financial information that provides information for decisionmaking. 7 Accounting 1, 7th edition Accounting Activities 8 1. Gathering financial information 2. Preparing and collecting permanent records 3. Rearranging, summarizing, and classifying financial information 4. Preparing information reports and summaries 5. Establishing controls to promote accuracy and honesty among employees Accounting 1, 7th edition Section 1.2 WHY STUDY ACCOUNTING? 9 Accounting 1, 7th edition Why study accounting? 10 Accounting 1, 7th edition Knowledge of Accounting Knowledge of accounting can be very useful to students for the following reasons: 1. 2. 3. 4. 5. 11 Accounting on the Job Accounting in Daily Life Owing Your Own Business Accounting as a Profession Complexity of Business Accounting 1, 7th edition University of Auckland / Waipapa Taumata Rau School of Business 12 Accounting 1, 7th edition Section 1.3 CHARACTERISTICS OF BUSINESS 13 Accounting 1, 7th edition What are four types of businesses? 14 Accounting 1, 7th edition Types of Businesses Most businesses fall within one of the following four categories: 1. 2. 3. 4. 15 The The The The Service Business Merchandising Business Manufacturing Business Non-Profit Organization Accounting 1, 7th edition Mini exercise: Either on the notes of this slide or in Docs: 16 Write a short definition of each of the four (4) types of business. Give two (2) examples of that type of business Accounting 1, 7th edition What are three forms of business ownership? 17 Accounting 1, 7th edition Forms of Business Ownership There are three main forms of business ownership: 1. 2. 3. 18 Sole Proprietorship Partnership Corporation (companies!) Accounting 1, 7th edition Section 1.4 THE NATURE OF ACCOUNTING 19 Accounting 1, 7th edition Categories of Accounting Work Accounting can be divided into three categories. 1. Routine Daily Activities ○ 2. Periodic Accounting Activities ○ 3. Payroll cheques, bank reconciliation, prepare financial reports, paying of taxes Miscellaneous Activities ○ 20 Processing bills, preparing cheques, daily banking, recording transactions Hiring employees, banking matters, helping customers Accounting 1, 7th edition The Accounting Cycle Accounting activities are performed in relation to equal periods of time known as fiscal periods. The accounting cycle can be thought of as the recurring set of accounting procedures carried out during each fiscal period. 21 Accounting 1, 7th edition The Accounting Cycle 22 Accounting 1, 7th edition The Accounting Cycle 23 Accounting 1, 7th edition Section 1.6 ROLES IN ACCOUNTING 24 Accounting 1, 7th edition The Accounting Clerk (Bookkeeper) Some jobs of the accounting clerk are: 1. 2. 3. 4. 25 Ensuring that transactions are properly recorded with supporting documents Recording the accounting entries and balancing the books Making payroll calculations and preparing cheques Carrying out all necessary banking transactions Accounting 1, 7th edition The Accountant Some jobs of the accountant are: 1. 2. 3. 4. 5. 6. 26 Developing a strategy to ensure that correct data are entered into the accounting system Ensuring all accounting rules (GAAP) are followed Interpreting financial data Preparing reports based on financial data Participating in managerial decisions Supervising the work of all accounting employees Accounting 1, 7th edition Let’s read Page 16 as a class!! Accounting 1, 7th edition