1. Accounting 1
Part I

3. 5 activities of accounting
Gathering financial information about the business
Preparing permanent records
Summarizing financial statements
Preparing reports
Establishing controls to promote accuracy

4. What is financial information?

5. Why are financial statements important?

6. What do they mean by “controls”
Internal Controls
Double checking
Work efficiency etc.
External Controls
Not enacted by company but by the government or other organizations
Regulations that can potential hinder business/restrict cash flow

7. What are some reasons to become an accountant?
Your thoughts?
Do the accounting for your own business
Work in an accounting firm as a professional accountant
It’s interesting
It’s a stable job that pays well

8. Types of Businesses
Service business: sells services (generally, “intangible”, a one-time job)
e.g. Barbershop, dentist, gardener, accountant
Merchandising business: sells products (generally, physical goods that can be re-used)
e.g. Clothing store, grocery store, electronics store

9. Types of business ownership
Sole-proprietorship: The business owner is the same person that runs the business
Partnership: Two or three people own the business
Corporation: A special form of business. Owners are usually separate from managers.

10. Accounting activities
Daily work: Preparing cheques, recording transactions, processing payments
Periodic work: Checking bank accounts, making financial reports, paying taxes

11. Becoming a professional accountant (CPA, “Chartered Professional Accountant”)
Generally takes months after receiving a Bachelor’s degree in Accounting
Qualifying exam can take up to 3 days to write

12. Bookkeeping vs. accounting
What are the differences?
Bookkeeping: Recording transactions, preparing financial reports
This introductory course is focused on bookkeeping
Accounting: Supervising bookkeepers, analyzing financial reports, making business decisions based on financial reports
University accounting courses focus on accounting