1. How can values be expressed in multiple ways?
Installment Plans
Accounting
Week 1
What basic math skills are necessary for success in accounting and finance?
How does one determine the appropriate mathematical to use for various business situation?
How can values be expressed in multiple ways?
How does one calculate the total amount due for a loan or a purchase?
What is Accounting?
What is the Accounting Equation?

2. The Accounting Equation

3. Doesn’t have to be paid off, could still be making payments
Assets
Liabilities
Owner’s Equity
Items OWNED by a business that will provide future benefits.
Probable future outflow of assets as a result of a past transaction or even.
Amount by which the business assets exceed the business liabilities.
Doesn’t have to be paid off, could still be making payments
In other words, debts or obligations of the business that can be paid with cash, goods, or services
“Net Worth” or “Capital”
CASH
MERCHANDISE
FURNITURE
FIXTURES
MACHINERY
BUILDINGS
LAND
Accounts Receivable
Once the debts are paid,
the remaining assets belong
to the owner (Owner’s Equity).
NOTES PAYABLE
ACCOUNTS PAYABLE

4. ANALYZING BUSINESS TRANSACTIONS
THREE QUESTIONS:
What Happened?
Which accounts are affected?
How is the Accounting Equation affected?