1. Job Opportunities in Accounting
Accountants
College degree in Accounting
Bookkeepers
Two years of high school Accounting
Accounting Clerks
One year of high school Accounting

2. Terms
1. Accounting
Planning, recording, analyzing, and interpreting financial information
Accounting System
A planned process for providing financial information useful to management
Accounting Records
Organized summaries of a business’ financial activities
Financial Statements
Financial reports that summarize the financial condition and operations of a business

3. A Business
A place where products are manufactured and/or purchased and sold, or services are provided to earn a profit for owners and/or stockholders

4. 2. Types of Business Sole Proprietorship Partnership Corporation
A business owned by one person
Partnership
A business where two or more persons combine their assets and skills
Corporation
A business owned by many people with the legal rights of an individual person

5. Accounting Concept
Business Entity – A business’s financial information is recorded and reported separately from the owner’s personal financial information
Examples:
Personal vehicle
Checking account
House
Personal utilities

6. 3. The Accounting Equation
Assets = Liabilities + Owners Equity
Assets-anything of value that is owned
Liabilities-an account owed by a business
Equities-financial rights to the assets of a business
Owner’s Equity- Amount remaining after the value of all liabilities is subtracted from the value of all assets.

7. 4. Business Activity Terms
Transaction – A business activity that changes assets, liabilities, or owner’s equity.
Account – A record summarizing all the information pertaining to a single item in the accounting equation.
Account Title – The name given to an account.
Account balance – The amount in an account.
Capital – The account used to summarize the owner’s equity in a business.

8. Accounting Concept
Unit of Measurement – when business transactions are stated in numbers that have common values
Example
U.S. uses dollars ($)

9. RECEIVING CASH
page 10
Transaction 1 August 1. Received cash from owner as an investment, $5,
LESSON 1-2

10. PAYING CASH Transaction 2 August 3. Paid cash for supplies, $275.00.
page 11
Transaction 2 August 3. Paid cash for supplies, $
Transaction 3 August 4. Paid cash for insurance, $1,
LESSON 1-2

11. TRANSACTIONS ON ACCOUNT
page 12
Transaction 4 August 7. Bought supplies on account from Supply Depot, $
Transaction 5 August 11. Paid cash on account to Supply Depot, $
LESSON 1-2

12. 5. Revenue Transactions
Revenue – an increase in owner’s equity resulting from the operation of business
Sale on account (Accounts receivable) – a sale in which cash will be received at a later date

13. Accounting Concept
Realization of Revenue – revenue is recorded at the time goods or services are sold

14. Expense Transactions
Expense – a decrease in owner’s equity resulting from the operation of business
Examples:
Rent
Telephone bill
Water bill

15. Other Cash Transactions
Withdrawal – assets taken out of a business for the owner’s personal use

16. Ethics
Ethics – the principles of right and wrong that guide decision making
Business ethics – the use of ethics in making business decisions

17. REVENUE TRANSACTIONS
page 14
Transaction 6 August 12. Received cash from sales, $
Transaction 7 August 12. Sold services on account to Oakdale School, $
LESSON 1-3

18. EXPENSE TRANSACTIONS
page 15
Transaction 8 August 12. Paid cash for rent, $
Transaction 9 August 12. Paid cash for telephone bill, $40.00.
LESSON 1-3

19. OTHER CASH TRANSACTIONS
Lesson 1-3
4/21/2017
OTHER CASH TRANSACTIONS
page 16
Transaction 10 August 18. Received cash on account from Oakdale School, $
Transaction 11 August 18. Paid cash to owner for personal use, $
LESSON 1-3
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