Intro to Accounting Notes

5,324
-1

Published on

Business 10 Course
1.2 and 1.2 Accounting Notes

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
5,324
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
240
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • gathering financial information about the activities of a business or other organization;preparing and collecting permanent records. Records provide evidence of purchase, proof of payment, details of payroll and so on.rearranging, summarizing, and classifying financial information into a more useable form;preparing information reports and summaries for the following purposes: a. to help management reach decisions; b. to serve the needs of groups outside the business, such as bankers and investors; c. to measure the profitability of the business;5.establishing controls to promote accuracy and honesty among employees.
  • Every business requires good financial information to make good decisions. By enabling financial information to be gathered and prepared, a good accounting system provides the answers to many questions. For example:Is the business earning enough profit?Are the selling prices of the products high enough?What is the value of all the goods for sale?To whom was cheque No. 333 issued?How much did John Doe earn last year?Are our customers paying their bills on time?
  • Other persons, companies or organizations might seek answers to the following questions:Should I lend money to this business? (a banker)Should I buy into this business? (a potential investor)Should I sell this business? (owner)Is the business well run? (an absentee owner)Is the company growing satisfactorily? (absentee owner)Can the business afford to pay more to its employees? (labour union)Is the business paying the proper amount of income tax? (government)
  • Personal BenefitsEveryone requires basic accounting knowledge in their daily lives because money impacts our life in so many ways: budgeting--ensuring our expenses will not exceed income; investments; balancing our cheque book to the bank statement; income taxes; payroll deduction; and mortgages, to name a few. An accounting background will help you with the language of business as well as accounting concepts.
  • There are many career opportunities available for individuals who obtain a diploma or degree in accounting. Accounting clerks to Accountants. Also, any position within a business requires basic accounting knowledge. Individuals can perform their jobs more efficiently if they understand the language of business -- accounting. This knowledge allows everyone involved in the business to make better decisions. Daily banking Keeping track of the amounts owed by customers producing income statements preparing payroll 
  • Business is growing, entrepreneurialism is growing -- and accounting requirements will grow. Every business must account for its financial activities; and the financial activities determine whether the business grows or even whether the business even continues. Accounting information is critical. Inaccurate accounting records could easily contribute to business failures and a lot of unnecessary stress!
  • Intro to Accounting Notes

    1. 1. + 1.1 What is Accounting?
    2. 2. + There are 5 Main activities involved in accounting: 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
    3. 3. + Accounting Helps Businesses Answer Questions  Is the business earning enough profit?  Are the selling prices of the products high enough?  What is the value of all the goods for sale?  Every business requires good financial information to make good decisions.  By enabling financial information to be gathered and prepared, a good accounting system provides the answers to many questions  To whom was cheque No. 333 issued?  How much did John Doe earn last year?  Are our customers paying their bills on time?
    4. 4. + Accounting can also help Answer Questions Other persons, companies or organizations might seek answers to the following questions:  Should I lend money to this business?  Should I buy into this business?  Should I sell this business?  Is the business well run?  Is the company growing satisfactorily?  Can the business afford to pay more to its employees?  Is the business paying the proper amount of income tax?
    5. 5. + Accounting Term: Accounting Records  Accounting Records are orderly records of the financial activities of a business.  Bookkeepers and Accountants both work with Accounting records.
    6. 6. + Compare  involves the planning and keeping of accounting records. There may be some analyzing and interpreting involved but not to the extent of accounting.  Bookkeeping is the recording, posting , and proving of the financial data. Bookkeeping takes place before accounting takes place.  is the planning, keeping, analyzing and interpreting of accounting records.  Accounting is the establishing and maintaining of the entire accounting system, the interpreting of the results of the recorded data, and the assisting in the management or decision- making aspects of the organization. Bookkeeping Accounting
    7. 7. + The Accounting Clerk (Bookkeeper) The work of an accounting clerk is clerical in nature and mostly concerned with routine matters.  ensures that transactions are properly recorded with supporting documents  records the accounting entries in the books of account and balances the ledger  makes payroll calculations, payroll cheques and other payroll records  carries out all necessary banking transactions
    8. 8. + The Accountant The work of an accountant is broader is scope and requires more education and experience.  develops a system to ensure that correct data are entered into the accounting system  ensures that generally accepted accounting standards are met  interprets data produced by the accounting system  prepares reports based on data  participates in management meetings  supervises the work of all accounting employees
    9. 9. + Bookkeeper or Accountant Who does the following types of work?  Ensuring that transactions are properly recorded and supporting documents are present and correct.  Carrying out necessary banking transactions.  Developing a system to ensure correct data are entered into an accounting system.  Recording the accounting entries and balancing the ledger  Interpreting data produced by the accounting system.  Participating in management meetings are assisting in making business decisions. Bookkeeper Bookkeeper Accountant Bookkeeper Accountant Accountant
    10. 10. + Accounting is the Language of Business
    11. 11. + Why Study Accounting?
    12. 12. + Personal Benefits  Budgeting  Investments  Keeping track of financial records – ex. Bank Account  Income Taxes  Payroll deductions  Mortgages and Loans How can an understanding of accounting be beneficial to a persons daily life
    13. 13. + Career Benefits  Daily Banking  Amounts owed by customers  Producing Income Statements  Preparing Payroll How could an understanding of Accounting be beneficial in many different careers?
    14. 14. + Business Careers  VERY!  Business and Entrepreneurialism is growing  Every business must account for its financial activities  Financial activities determine whether the business grows or even whether the business even continues.  Accounting information is critical.  Inaccurate accounting records could easily contribute to business failures and a lot of unnecessary stress! How important is an understanding of Accounting to any Business?
    15. 15. + Accounting as a Profession Canada has 3 national professional accounting organizations  Chartered Accountant (CA)  Certified General Accountant (CGA)  Certified Management Accountant (CMA). Each profession requires you to complete a prescribed course usually after you have completed a university degree. Note: As of January 2013, CA’s and CMA’s have integrated into one professional group – Chartered Professional Accountants Canada. CGA’s are joining this group this year.
    16. 16. + Working Accountants 1. Public accountant  serves the general public for a fee, much like a doctor or lawyer does.  The main type of work done by public accountants is auditing.  Auditing is the examination and testing of the books, records, and procedures of a business in order to be able to express an opinion about its financial statements. Two working categories:
    17. 17. + Working Accountants 2. Professional accountant  may choose industrial or institutional accounting  Industrial accountants work for large companies such as Ford or Microsoft.  Institutional accountants work for the government, banks, large insurance companies and similar organizations. Two working categories:
    18. 18. + Assignment.  See Blackboard for Details.

    ×