Accounting and Business 1 1

Chapter 1 What is Accounting? Find a partner and see if you can write down a definition of accounting!

Chapter 1 Definition Accounting is a of dealing with financial data that provides information for

Chapter 1 The 5 Main Activities Preparing and collecting permanent records Rearranging, summarizing and classifying financial information Establishing controls to promote accuracy and honesty

Chapter 1 Accounting in the lower mainland In groups of two or three: Go online to find an accounting firm in the lower mainland. How do their offered services represent the 5 main activities of accounting? Name and location of the company. List of services offered. Who is on the firm’s team? Backgrounds/certifications? Connections to the 5 main activities accounting.

Chapter 1 Types of Businesses 1. Service Businesses Examples: Movie theatre Hair salon Physiotherapy clinic Accounting firm Catering company 2. Motorcycle dealership Clothing store Video game store Sporting goods store Grocery store 6

Chapter 1 Types of Businesses 3. Examples: Computer manufacturer Car manufacturer Food-processing company Farm equipment manufacturer 4. Non-Profit Organizations (NPO) Religious organization Charity Amateur sports organization NGOs (non-governmental organization) 7

Forms of Business Ownership Chapter 1 Forms of Business Ownership 1. Sole Proprietorship Examples: Dr. Joe Dimitry, Dentist Rosa’s Pizza Alf’s Home Bakery Rustic Pottery—Miriam Daily, owner 2. McPhearson & Scott, Chartered Accountants Bucchino & Magalli, Barristers and Solicitors Hakala and Sons Service Centre Café Crème—Solange Dion and Alex Boucher, owners 8

Forms of Business Ownership Chapter 1 Forms of Business Ownership 3. Limited Company or Corporation Examples: Pool People Ltd. Uni Electrical and Mechanical Ltd. Gunn’s Auto Service Ltd. Building Resources Ltd., Construction Consultants 3. Examples: Housing cooperatives Our Ecovillage on Vancouver Island Worker-owned cooperatives 9

Chapter 1 Worker-Owned Cooperatives: http://institute.coop/examples-worker-cooperatives Assignment 1 Organizational Structures – Pros and Cons: https://canadabusiness.ca/starting/before-starting-your-business/corporation-partnership-or-sole-proprietorship/ Assignment 2

The Accounting Cycle Four of the steps occur in the outer ring. Chapter 1 – The Accounting Cycle l Accounting 1, 7th Edition

The Accounting Cycle 1. Transactions occur. Chapter 1 – The Accounting Cycle l Accounting 1, 7th Edition

The Accounting Cycle 2. Transactions are recorded in the journal. Chapter 1 – The Accounting Cycle l Accounting 1, 7th Edition

The Accounting Cycle 3. Journal entries are posted to ledger accounts. Chapter 1 – The Accounting Cycle l Accounting 1, 7th Edition

The Accounting Cycle 4. Trial balance and interim financial statements are prepared. Chapter 1 – The Accounting Cycle l Accounting 1, 7th Edition

The Accounting Cycle These outer ring activities are ongoing and cyclical. Chapter 1 – The Accounting Cycle l Accounting 1, 7th Edition

The Accounting Cycle Four of the steps occur in the inner ring. Chapter 1 – The Accounting Cycle l Accounting 1, 7th Edition

The Accounting Cycle 5. The worksheet is prepared. Chapter 1 – The Accounting Cycle l Accounting 1, 7th Edition

The Accounting Cycle 6. Formal financial statements are prepared. Chapter 1 – The Accounting Cycle l Accounting 1, 7th Edition

The Accounting Cycle 7. Ledger accounts are adjusted and closed. Chapter 1 – The Accounting Cycle l Accounting 1, 7th Edition

The Accounting Cycle 8. The post-closing trial balance is prepared. Chapter 1 – The Accounting Cycle l Accounting 1, 7th Edition

The Accounting Cycle The cycle is complete and it begins to repeat itself. Chapter 1 – The Accounting Cycle l Accounting 1, 7th Edition

Guest Speaker: Craig Murata Let’s prepare some good questions for Craig!