Accounting I Mr. Schneider mrpschneider.wikispaces.com

What is Accounting? The planning, recording, analyzing and interpreting of financial information. (Textbook: Ross, Gilbertson, Lehman & Hanson) The planning, recording, analyzing and interpreting of financial information. (Textbook: Ross, Gilbertson, Lehman & Hanson)

Why do we have Accounting? Tax Purposes Tax Purposes Public Disclosure Public Disclosure Budgeting Budgeting Resource allocation decisions Resource allocation decisions

Careers in Accounting Break into groups of two and brainstorm all the types of jobs that you think incorporate accounting. Break into groups of two and brainstorm all the types of jobs that you think incorporate accounting.

Careers Auditing Firm-makes sure other companies are following the rules Auditing Firm-makes sure other companies are following the rules Insurance Company Insurance Company Manufacturing Company Manufacturing Company Own your own business Own your own business Accounting Dept. of various companies Accounting Dept. of various companies

What is an Asset, Liability, Owner’s Equity? Asset Asset anything owned which can produce future economic benefit. anything owned which can produce future economic benefit. Liability Liability something that is owed to another party. something that is owed to another party. Owner’s Equity Owner’s Equity the owner’s investment in the business. the owner’s investment in the business.

Examples of Assets In small groups, list as many assets as you can. In small groups, list as many assets as you can. Include both household and business assets. Include both household and business assets.

The Accounting Equation Assets = Liabilities + Owner’s Equity Assets = Liabilities + Owner’s Equity Owner’s Equity = Assets – Liabilities Owner’s Equity = Assets – Liabilities Liabilities = Assets - Owner’s Equity Liabilities = Assets - Owner’s Equity

Example Assets $300,000 Assets $300,000 Total Liabilities $180,000 Total Liabilities $180,000 Owner’s Equity $120,000 Owner’s Equity $120,000