Accounting and business Unit 1-Chapter 1

agenda Learning goals for this chapter Vocabulary Lesson Professional accountant assignment

Learning goals Learn about what is Accounting. Understand why we need Accounting. Learn about different types of business Learn about different forms of business ownership Learn about the accounting cycle. Have a brief understand of the 3 major Accounting Professions. Understand accountant and accounting clerk/bookkeeper

Vocabulary Accountant Limited company Producing business Accounting Manufacturing business Professional accountant Accounting clerk Merchandizing business Accounting cycle Public accountant Auditing Non-profit organization Service business Bookkeeping Sole proprietorship Corporation Partnership Fiscal period

1.1 What is accounting? Gathering financial information Preparing and collecting permanent records Rearranging summarizing and classifying financial information Preparing information reports and summaries Help management make decisions Helps 3rd party such as bank and investors Helps to measure the profitability of a business Establish controls to promote accuracy and honesty among employees.

1.2 Why study accounting? If you decided to work in business, knowing accounting will increase your ability to find a job. Assist you in your personal life. You can handle your personal business needs like: prepare a budge, keep financial records and prepare your own income tax. If you want to own your own business…ACCOUNTING IS SO IMPORTANT. You must know if you are making money and what to price your products. Choose accounting as a profession

1.2 Accounting as a profession Professional accountant: is a person who has met the requirements of at least one of the three accounting organizations in Canada (CA, CGA, CMA) Cell phone activity: take out your phone and find out what is a CA, CGA and CMA CA CGA CMA Public accountant: works for the general public they are there to ensure that business are reporting accurate information and not drying to defraud the government. They audit companies.

1.3 types of Business What is a business? https://www.youtube.com/watch?v=ohpdWVwofPk Service Business Merchandizing Business Manufacturing or Producing Business The Non-Profit organization

1.3 Types of Business Service Business: Sells a service to the public; it doesn’t make or sell products. EX hairdressing salon, music recording studies, dental clinic… Merchandising Business: Buys goods and resells them at a higher price for profits. EX clothing store, a computer store or a supermarket. Manufacturing Business: Buys raw material, converts them into a new product and sells these products to earn a profit. EX auto maker, a paper mill or a steel plant. Producing Business: Similar to manufacturing but a little different. EX Farms that produce: milk, grains and other foods. Also oil extraction, mining, forestry and fishing… Non-Profit Organization: Performs activities to meet social needs but not for the purpose of making a profit. EX church, Canadian Cancer Society….

1.3 Forms of Business Ownership https://www.youtube.com/watch?v=v0JsECc9w7E https://www.youtube.com/watch?v=8YlsEkhfjXk watch the videos fill in the chart Sole proprietorship Definition: Advantages: Disadvantages: Partnership Advantage: Disadvantage: Corporation

1.3 Forms of Business Ownership https://www.youtube.com/watch?v=v0JsECc9w7E https://www.youtube.com/watch?v=8YlsEkhfjXk watch the videos fill in the chart Sole proprietorship Definition: Advantages: Disadvantages: Partnership Advantage: Disadvantage: Corporation

1.4 Accounting cycle Accounting activities are done in fiscal periods. Fiscal periods are an equal period of time usually a year. Accounting cycle: is a recurring set of accounting procedures done during each fiscal period.

1.6 Accounting clerk or bookkeeper Accountant Are concerned with the with routine matters and recording of those items on regular basis. Ensure that transactions are properly recorded and that the necessary supporting document exist. Record accounting entries in the books of accounts and balance the ledger as necessary. Making payroll calculations, payroll cheques and other payroll records Responsible for making and recording banking transactions. Has a much greater responsibility and is responsible for maintaining the whole accounting system. Develop strategies to enter data Understand and the accounting data Prepare reports based on data entered by accounting clerks Help make business decisions Supervise the work of accounting clerks/bookkeepers.

Professional Accountant assignment As previously mentioned in the lesson there are three major accounting professional accounting designations: CA, CMA, CGA For this assignment I want you to work in groups of 3-4 students. You will research, make a poster and short presentation to the class about your designation. What does the acronym stand for Governing organization responsible for giving out the designation Research educational background required Stages and length of study required to acquire the designation. Possible jobs one can get with that designation. Give a brief description of the job responsibilities and average pay.