accounting - lpswp.lps.org/dwolken/files/2014/08/01-1-1.pdf · 2014. 8. 1. · accounting •choose...
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ACCOUNTING
• Choose a computer that you would like to sit at. – Not #25 and #26– DO NOT LOG ON– PLEASE NOTE YOU WILL WANT TO BE ABLE TO SEE THE SCREEN.
– THIS WILL BE YOUR TEMPORARY SEAT.
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Thursday, August 14
• Setting up our Aplia accounts http://login.cengage.com
• Create a new account – green button on right• Use your LPS email – something like: [email protected]
• Use your LPS password – but the first letter must be capitalized! (i.e. Safety9)
• Course Key: C2U8‐K9EA‐8G2V
SLIDE 2
LO1
Lesson 1‐1
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Who is worth more?
• 2 families….• Check out textbook• Textbook Tour• Assignment for Friday:
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Learning
Objectives
© 2014 Cengage Learning. All Rights Reserved.
LO1 Describe the different users of accounting information.
LO2 Prepare a net worth statement and explain its purpose.
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© 2014 Cengage Learning. All Rights Reserved.
The Role of Accounting
● Data must be recorded and reported in accounting reports.
● Then, the information can be provided to business owners, managers, investors, and others to make business decisions and measure performance.
SLIDE 5
LO1
Lesson 1‐1
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© 2014 Cengage Learning. All Rights Reserved.
What Is Accounting?
● Accounting is the process of planning, recording, analyzing, and interpreting financial information.
● An accounting system is a planned process designed to compile financial data and summarize the results in accounting records and reports.
● Financial reports that summarize the financial condition and operations of a business are called financial statements.
LO1
Lesson 1‐1
SLIDE 6
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© 2014 Cengage Learning. All Rights Reserved.
Accounting in Personal Life
● A net worth statement allows the person extending the loan to see the financial position of a borrower on a specific date and make a lending decision.
● Anything of value that is owned is called an asset.● An amount owed is called a liability.● The difference between personal assets and personal liabilities is called personal net worth. ● In business, net worth is also called equity.
● Equity is the difference between assets and liabilities.
LO2
Lesson 1‐1
SLIDE 7
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© 2014 Cengage Learning. All Rights Reserved.
Personal Net Worth Statement
SLIDE 8
Total Assets(owned)
Total Liabilities(owed)
Net Worth(also known as Equity)− =
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Lesson 1‐1
LO2
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© 2014 Cengage Learning. All Rights Reserved.
Ethics in Business
● The principles of right and wrong that guide an individual in making decisions are called ethics.
● The use of ethics in making business decisions is called business ethics.
LO2
Lesson 1‐1
SLIDE 9
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© 2014 Cengage Learning. All Rights Reserved.
Lesson 1‐1 Audit Your Understanding
1. What is accounting?
SLIDE 10
ANSWER
Accounting is the process of planning, recording, analyzing, and interpreting financial information.
Lesson 1‐1
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© 2014 Cengage Learning. All Rights Reserved.
Lesson 1‐1 Audit Your Understanding
2. Why is accounting called the language of business?
SLIDE 11
ANSWER
Accounting provides financial information to everyone who needs it to make good business decisions.
Lesson 1‐1
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© 2014 Cengage Learning. All Rights Reserved.
Lesson 1‐1 Audit Your Understanding
3. Describe a scenario in which you, as a nonaccountant, might use accounting.
SLIDE 12
ANSWER
Answers may include creating a personal budget or providing information for a loan or credit card application.
Lesson 1‐1