Unit: Introduction to Accounting

Resources:

• text, chapters #1 and 2;

• Introduction to Accounting (PowerPoint);

• Exploring the Balance Sheet (PowerPoint);

• Blank Balance Sheet;

Practice:

• Practice Test & Answer Key

• Practice Multiple Choice Questions

Requirements:

In order to successfully complete the 3A Accounting test on this first four chapter, the student should be able to perform the following tasks:

Outline the fundamental objectives of accounting. These include:

• gathering financial information,
• preparing and collecting permanent records,
• rearranging, summarizing, and classifying financial information,
• preparing information reports and summaries, and
• establishing controls to promote accuracy and honesty among employees.

Differentiate between the following types of businesses:

• service
• merchandising
• manufacturing,
• non-profit organization,

  as well as the following forms of business ownership:

• sole proprietorship,
• partnership,
• corporation (or limited company)

• Assets = Liabilities + Owner's Equity

Understand the nature of accounts that would typically be placed within a Balance Sheet, such as:

• cash,
• accounts receivable,
• furniture,
• equipment,
• supplies,

• bank loan payable,
• account payable,
• mortgage payable, and
• capital.

Understand the nature of the accounting cycle and list the order of accounting cycle activities, such as:

• source documents,
• journalizing,
• posting,
• trial balance,
• worksheet,
• financial statements,
• closing entries,
• post closing trial balance.

Define and explain the following concepts:

• economic resources,
• creditor,
• credit,
• debt,
• debtor,
• owner investment,
• GAAPs,
• entity concept,
• liquidity order,
• order for listing liabilities, and
• demand loan.