1. Lesson 1-1 The Accounting Equation
5/22/2018
LESSON 1-1
The Accounting Equation
ASSETS = LIABILITIES + OWNER’S EQUITY

2. What are assets? Anything of value that is owned Cash Supplies
TechKnow Consulting
What are assets?
Anything of value that is owned
Cash
Supplies
Prepaid Insurance
LESSON 1-1

3. What are Equities? Financial rights to the assets of a business
TechKnow Consulting
What are Equities?
Financial rights to the assets of a business
2 Types of Equities
Liabilities: An amount owed by a business
Owner’s Equity: Amount remaining after the value of all liabilities is subtracted from the value of all assets
LESSON 1-1

4. THE ACCOUNTING EQUATION
Lesson 1-1
5/22/2018
THE ACCOUNTING EQUATION
page 8
Accounting Equation must always EQUAL!
LESSON 1-1

5. TERMS REVIEW accounting accounting system accounting records
page 9
accounting
accounting system
accounting records
financial statements
service business
proprietorship
asset
equities
liability
owner’s equity
accounting equation
ethics
business ethics
LESSON 1-1