Presentation is loading. Please wait.

Presentation is loading. Please wait.

Starting a Proprietorship: Changes That Affect the Accounting Equation

Published byRoger Evans Modified over 9 years ago

Similar presentations

Presentation on theme: "Starting a Proprietorship: Changes That Affect the Accounting Equation"— Presentation transcript:

1 Starting a Proprietorship: Changes That Affect the Accounting Equation
Lesson 1-1 4/19/2017 Chapter 1 Starting a Proprietorship: Changes That Affect the Accounting Equation Identify service businesses. Analyze sole proprietorship with the advantages and disadvantages. State the Accounting Equation.

2 Competency: Understanding the Accounting Cycle for a Service Business
Objectives: 34 Describe the purpose of accounting and the role it plays in the global economy. 35 Demonstrate the effects of transactions on the accounting equation. LESSON 1-1

3 Chapter 1 Objectives Define accounting terms related to starting a service business organized as a proprietorship and to changes that affect the accounting equation. Identify accounting concepts and practices related to starting a service business organized as a proprietorship and to changes that affect the accounting equation. Classify accounts as assets, liabilities, or owner’s equity and demonstrate their relationships in the accounting equation. Analyze how transactions affect accounts in an accounting equation. LESSON 1-1

4 What is Accounting? Accounting – planning, recording, analyzing, and interpreting financial information. Accounting system – a planned process for providing financial information that will be useful to management. Accounting records – organized summaries of a business’s financial activities. Financial statements – financial reports that summarize the financial condition and operations of a business. LESSON 1-1

5 Service business – a business that performs an activity for a fee.
Proprietorship/Sole Proprietorship – a business owned by one person. LESSON 1-1

6 BUSINESS STRUCTURES Forming and Dissolving a Proprietorship
Advantages Disadvantages Ease of formation. Total control by the owner. Profits that are not shared. Limited resources. Unlimited liability. Limited expertise. Limited life. Obligation to follow the laws of both the federal government and the state and city in which the business is formed. LESSON 1-1

7 Asset – anything of value that is owned.
Equities – Financial rights to the assets of a business. Liability – an amount owed by a business. Owner’s Equity/Capital – the amount remaining after the value of all liabilities is subtracted from the value of all assets. Accounting Equation – shows the relationship among assets, liabilities, and owner’s equity. LESSON 1-1

8 THE ACCOUNTING EQUATION
Lesson 1-1 4/19/2017 THE ACCOUNTING EQUATION page 8 LESSON 1-1

9 DEFINE TERMS REVIEW In a Word Document. SaveAS: Chapter1TermsYourName
page 9 In a Word Document. SaveAS: Chapter1TermsYourName accounting accounting system accounting records financial statements service business proprietorship asset equities liability owner’s equity accounting equation ethics business ethics LESSON 1-1

10 Exit Ticket for Chapter 1-1
In a Word Document, SaveAS: Chapter1-1AYUYourName Drop a copy in my InBox today before you leave! What is accounting? Give two examples of service businesses. What is a proprietorship and explain advantages and disadvantages? State the accounting equation. LESSON 1-1

11 Chapter 1-1 Assignments Complete on Aplia
Work Together 1-1 On Your Own 1-1 Application Problem 1-1 LESSON 1-1

Download ppt "Starting a Proprietorship: Changes That Affect the Accounting Equation"

Similar presentations

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4-1 Preparing a Chart of Accounts 1.Describe the two parts of an account number. 2.List.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4-1 Preparing a Chart of Accounts 1.Describe the two parts of an account number. 2.List.
© 2014 Cengage Learning. All Rights Reserved.

© 2014 Cengage Learning. All Rights Reserved.
Learning Objectives © 2014 Cengage Learning. All Rights Reserved. LO3Classify accounts as assets, liabilities, or owner’s equity and demonstrate their.

Learning Objectives © 2014 Cengage Learning. All Rights Reserved. LO3Classify accounts as assets, liabilities, or owner’s equity and demonstrate their.
OBJECTIVES Define Accounting, service business and proprietorship

OBJECTIVES Define Accounting, service business and proprietorship
Chapter 1 Accounting Terms

Chapter 1 Accounting Terms
The Accounting Equation n Property: anything of value that is owned –cash and supplies to conduct daily business –can be used to acquire other assets (supplies)

The Accounting Equation n Property: anything of value that is owned –cash and supplies to conduct daily business –can be used to acquire other assets (supplies)
Chapter 1 – Starting A Proprietorship

Chapter 1 – Starting A Proprietorship
Chapter 1 – Starting a Proprietorship

Chapter 1 – Starting a Proprietorship
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 1-1 Using Accounting Principles and Records.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 1-1 Using Accounting Principles and Records.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4-5 End-of-Period Work for a Departmentalized Business.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4-5 End-of-Period Work for a Departmentalized Business.
Chapter 1 Balance Sheet Accounts. Big Ideas Define accounting terms related to starting a service business organized as a proprietorship Identify accounting.

Chapter 1 Balance Sheet Accounts. Big Ideas Define accounting terms related to starting a service business organized as a proprietorship Identify accounting.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 1 LESSON 1-1 GOLD’S GYM Franchise – individuals/groups buy the right to open and operate a.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 1 LESSON 1-1 GOLD’S GYM Franchise – individuals/groups buy the right to open and operate a.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4-3 Preparing a Work Sheet for a Departmentalized Business.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4-3 Preparing a Work Sheet for a Departmentalized Business.
What is Accounting  Accounting is Planning, Recording, Analyzing and Interpreting financial information  A planned process for providing financial information.

What is Accounting  Accounting is Planning, Recording, Analyzing and Interpreting financial information  A planned process for providing financial information.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4-3 Posting Column Totals from a Journal to a General Ledger 1.Which column totals.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4-3 Posting Column Totals from a Journal to a General Ledger 1.Which column totals.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 7-3 Accounts Receivable Turnover Ratio Accounts receivable turnover ratio Average number.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 7-3 Accounts Receivable Turnover Ratio Accounts receivable turnover ratio Average number.
ACCOUNTING I Chapter 1. WHAT IS ACCOUNTING? Accounting – planning, recording, analyzing, and interpreting financial information Accounting System – A.

ACCOUNTING I Chapter 1. WHAT IS ACCOUNTING? Accounting – planning, recording, analyzing, and interpreting financial information Accounting System – A.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4-2 Posting Separate Amounts from a Journal to a General Ledger 1.List the five steps.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4-2 Posting Separate Amounts from a Journal to a General Ledger 1.List the five steps.
© 2000 South-Western Educational Publishing ACCOUNTING & ACCOUNTING SYSTEMS n P R A I –Planning –Recording –Analyzing –Interpreting financial information.

© 2000 South-Western Educational Publishing ACCOUNTING & ACCOUNTING SYSTEMS n P R A I –Planning –Recording –Analyzing –Interpreting financial information.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 7-1 Direct Write-Off Method of Recording Uncollectible Accounts Uncollectible accounts.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 7-1 Direct Write-Off Method of Recording Uncollectible Accounts Uncollectible accounts.

Similar presentations

Ads by Google