1. Accounting and business
Unit 1-Chapter 1

2. agenda Learning goals for this chapter Vocabulary Lesson
Professional accountant assignment

3. Learning goals Learn about what is Accounting.
Understand why we need Accounting.
Learn about different types of business
Learn about different forms of business ownership
Learn about the accounting cycle.
Have a brief understand of the 3 major Accounting Professions.
Understand accountant and accounting clerk/bookkeeper

4. Vocabulary Accountant Limited company Producing business Accounting
Manufacturing business
Professional accountant
Accounting clerk
Merchandizing business
Accounting cycle
Public accountant
Auditing
Non-profit organization
Service business
Bookkeeping
Sole proprietorship
Corporation
Partnership
Fiscal period

5. 1.1 What is accounting? Gathering financial information
Preparing and collecting permanent records
Rearranging summarizing and classifying financial information
Preparing information reports and summaries
Help management make decisions
Helps 3rd party such as bank and investors
Helps to measure the profitability of a business
Establish controls to promote accuracy and honesty among employees.

6. 1.2 Why study accounting?
If you decided to work in business, knowing accounting will increase your ability to find a job.
Assist you in your personal life. You can handle your personal business needs like: prepare a budge, keep financial records and prepare your own income tax.
If you want to own your own business…ACCOUNTING IS SO IMPORTANT. You must know if you are making money and what to price your products.
Choose accounting as a profession

7. 1.2 Accounting as a profession
Professional accountant: is a person who has met the requirements of at least one of the three accounting organizations in Canada (CA, CGA, CMA)
Cell phone activity: take out your phone and find out what is a CA, CGA and CMA CA
CGA
CMA
Public accountant: works for the general public they are there to ensure that business are reporting accurate information and not drying to defraud the government.
They audit companies.

8. 1.3 types of Business What is a business?
Service Business
Merchandizing Business
Manufacturing or Producing Business
The Non-Profit organization

9. 1.3 Types of Business Service Business:
Sells a service to the public; it doesn’t make or sell products. EX hairdressing salon, music recording studies, dental clinic…
Merchandising Business:
Buys goods and resells them at a higher price for profits. EX clothing store, a computer store or a supermarket.
Manufacturing Business:
Buys raw material, converts them into a new product and sells these products to earn a profit. EX auto maker, a paper mill or a steel plant.
Producing Business:
Similar to manufacturing but a little different. EX Farms that produce: milk, grains and other foods. Also oil extraction, mining, forestry and fishing…
Non-Profit Organization:
Performs activities to meet social needs but not for the purpose of making a profit. EX church, Canadian Cancer Society….

10. 1.3 Forms of Business Ownership
watch the videos fill in the chart
Sole proprietorship
Definition:
Advantages:
Disadvantages:
Partnership
Advantage:
Disadvantage:
Corporation

11. 1.3 Forms of Business Ownership
watch the videos fill in the chart
Sole proprietorship
Definition:
Advantages:
Disadvantages:
Partnership
Advantage:
Disadvantage:
Corporation

12. 1.4 Accounting cycle
Accounting activities are done in fiscal periods. Fiscal periods are an equal period of time usually a year.
Accounting cycle: is a recurring set of accounting procedures done during each fiscal period.

13. 1.6 Accounting clerk or bookkeeper
Accountant
Are concerned with the with routine matters and recording of those items on regular basis.
Ensure that transactions are properly recorded and that the necessary supporting document exist.
Record accounting entries in the books of accounts and balance the ledger as necessary.
Making payroll calculations, payroll cheques and other payroll records
Responsible for making and recording banking transactions.
Has a much greater responsibility and is responsible for maintaining the whole accounting system.
Develop strategies to enter data
Understand and the accounting data
Prepare reports based on data entered by accounting clerks
Help make business decisions
Supervise the work of accounting clerks/bookkeepers.

14. Professional Accountant assignment
As previously mentioned in the lesson there are three major accounting professional accounting designations:
CA, CMA, CGA
For this assignment I want you to work in groups of 3-4 students. You will research, make a poster and short presentation to the class about your designation.
What does the acronym stand for
Governing organization responsible for giving out the designation
Research educational background required
Stages and length of study required to acquire the designation.
Possible jobs one can get with that designation. Give a brief description of the job responsibilities and average pay.