© 2014 Cengage Learning. All Rights Reserved. Do Now: ●In your notebooks: ●What is your favorite place to shop on a consistent basis? ●Why is this your favorite place to purchase things? ●Do you believe this business acts ethically? Why or why not? SLIDE 1 LO1 Lesson 1-1

© 2014 Cengage Learning. All Rights Reserved. Turn & Talk: ●With a partner, agree on one of your two businesses and answer the following question: ●What are different business activities that the service business or retailer partakes in and data it collects so that it can provide that good/service to you? SLIDE 2 LO1 Lesson 1-1

© 2014 Cengage Learning. All Rights Reserved. Our Centerpiece: ●MindTap! ●All working papers done here ●Some videos/articles attached ●PowerPoints accessible here ● SLIDE 3

© 2014 Cengage Learning. All Rights Reserved. Closure: ●Exit Slip: What experiences have you had that you feel relate to accounting? ●Hand your post-it note to me when finished ●HAVE A GREAT DAY! SLIDE 4 LO1 Lesson 1-1

© 2014 Cengage Learning. All Rights Reserved. Do Now: ●In your notebooks: ●Make a “KWL Chart” (Venn Diagram): What do you know about accounting already (top left circle) and what would you like to know (top right circle, with bottom circle being left blank for now)? ●One example may be… ● SLIDE 5 LO1 Lesson 1-1

© 2014 Cengage Learning. All Rights Reserved. The Role of Accounting ●Data must be recorded and reported in accounting reports. ●Then, the information can be provided to business owners, managers, investors, and others to make business decisions and measure performance. ●Accounting is called the language of business because it has its own rules that must be learned and practiced in order to operate a business successfully SLIDE 6 LO1 Lesson 1-1

© 2014 Cengage Learning. All Rights Reserved. What Is Accounting? ●Accounting is the process of planning, recording, analyzing, and interpreting financial information. ●Not just bookkeeping, but analyzing and interpreting that data as well ●An accounting system is a planned process designed to compile financial data and summarize the results in accounting records and reports. ●Financial reports that summarize the financial condition and operations of a business are called financial statements. LO1 Lesson 1-1 SLIDE 7

© 2014 Cengage Learning. All Rights Reserved. Accounting in Personal Life ●A net worth statement allows the person extending the loan to see the financial position of a borrower on a specific date and make a lending decision. ●Used for personal and business/professional situations ●Anything of value that is owned is called an asset. ●Jewelry, bike, cash, car ●An amount owed is called a liability. ●Owing money to friends, car loans, credit card bills LO2 Lesson 1-1 SLIDE 8

© 2014 Cengage Learning. All Rights Reserved. Accounting in Personal Life ●The difference between personal assets and personal liabilities is called personal net worth. ●In business, net worth is also called equity. ●Equity is the difference between assets and liabilities. ●Higher personal net worth if one owns more than they owe ●Lender looks upon that person favorably because assets are greater than liabilities SLIDE 9 LO2 Lesson 1-1

© 2014 Cengage Learning. All Rights Reserved. Personal Net Worth Statement SLIDE 10 Total Assets (owned) Total Liabilities (owed) Net Worth (also known as Equity) −= Lesson 1-1 LO2

© 2014 Cengage Learning. All Rights Reserved. Think, Ink, Pair, Share: ●Imagine one of your siblings, guardians, or friends ask to borrow a substantial amount of money from you ●What things would you ask your siblings, parents, cousins or friends before you so kindly agree to lend them money ●When finished writing in your notebook, write a few answers on the back board “Parking Lot” SLIDE 11

© 2014 Cengage Learning. All Rights Reserved. Your Turn ●Create your own personal net worth statement in Excel using your current assets and liabilities ●Be ready to share and discuss! SLIDE 12

© 2014 Cengage Learning. All Rights Reserved. Ethics in Business ●The principles of right and wrong that guide an individual in making decisions are called ethics. ●The use of ethics in making business decisions is called business ethics. LO2 Lesson 1-1 SLIDE 13

© 2014 Cengage Learning. All Rights Reserved. Lesson 1-1 Audit Your Understanding 1.What is accounting? SLIDE 14 ANSWER Accounting is the process of planning, recording, analyzing, and interpreting financial information. Lesson 1-1

© 2014 Cengage Learning. All Rights Reserved. Lesson 1-1 Audit Your Understanding 2.Why is accounting called the language of business? SLIDE 15 ANSWER Accounting provides financial information to everyone who needs it to make good business decisions. Lesson 1-1

© 2014 Cengage Learning. All Rights Reserved. Lesson 1-1 Audit Your Understanding 3.Describe a scenario in which you, as a nonaccountant, might use accounting. SLIDE 16 ANSWER Answers may include creating a personal budget or providing information for a loan or credit card application. Lesson 1-1

© 2014 Cengage Learning. All Rights Reserved. Think, Pair, Share ●Using MindTap, complete 1-1 WT with a partner ●Then individually complete 1-1 OYO ●Be ready to review! ●If you have time, complete Application Problem 1-1 in “Chapter 1 Review” section on Mindtap…Homework if not completed! SLIDE 17 Lesson 1-1

© 2014 Cengage Learning. All Rights Reserved. Closure ●Finish your KWL chart using something you have learned today that you did not previously know or now know more about! ●Be ready to discuss! SLIDE 18 Lesson 1-1