1. Mr. Bernstein Financial Record Keeping, pp 428-436 May 2017
Entrepreneurship
Mr. Bernstein
Financial Record Keeping, pp
May 2017

2. Entrepreneurship Mr. Bernstein
Accounting Systems
Businesses keep score
GAAP: Generally Accepted Accounting Principles
The Accounting Equation: Assets = Liabilities + Owner’s Equity
Assets are anything of value (ie cash, equipment, accounts receivable)
Liabilities are anything the business owes
Owner’s Equity is the net worth of the business (Assets – Liabilities = Owner’s Equity)

3. Entrepreneurship Mr. Bernstein
Accounting Systems
Accounting Procedures
Create accounts
Record entries into journals
Use cash basis or accrual basis
Post to ledgers
Journals should be updated daily if not constantly
Journal entries should be posted to ledgers weekly or more often

4. Entrepreneurship Mr. Bernstein
Examples of Accounts for Journals
Sales
Office Supplies
Rent
Utilities
Purchases
Payroll
Depreciation

5. Entrepreneurship Mr. Bernstein
Examples of Accounts for Journals: Payroll Data