LESSON 1-1 What is Accounting? Why is Accounting called the “Language of Business?” What is an Accounting System?
LESSON 1-1 Accounting is….. - Planning, recording, analyzing, and interpreting financial information Planning Recording Analyzing Interpreting
LESSON 1-1 An Accounting System The process of providing financial data and information to management so that they can make accurate/appropriate financial decisions. Accounting Records are the organized summaries of the businesses financial activities. WHY IS ACCOUNTING SO IMPORTANT? WHAT ARE SOME CAREER OPPORTUNITIES IN ACCOUNTING?
LESSON 1-1 Why are Financial Statements important? One Name: ENRON http://www.youtube.com/watch?v=Uxd9AeXft64
LESSON 1-1 THE BUSINESS- Techknow Consulting Service Business - a business that performs an activities for a fee. Brainstorm some service businesses….. Proprietorship- a business that is owned by one person . The liability for business losses or any personal or property losses remains with the sole proprietor (owner) PAGE 6:TECHKNOW CONSULTING
LESSON 1-1 ADVANTAGES VS DISADVANTAGES OF A PROPRIETORSHIP ADVANTAGES DISADVANTAGES EASE OF FORMATION OWNER CONTROLLED YOUR OWN BOSS PROFITS ARE NOT SHARED LIMITED RESOURCES UNLIMITED LIABILITY LIMITED EXPERTISE LIMITED LIFE OBLIGATIONS TO FOLLOW LAW
LESSON 1-1 THE ACCOUNTING EQUATION MUST BE IN BALANCE! ASSETS LIABILITIES OWNER’S EQUITY ASSETS = LIABILITIES + OWNER’S EQUITY