CENTURY 21 ACCOUNTING © Thomson/South-Western

LESSON 1-1LESSON 1-1

What is Accounting?

Why is Accounting called the “Language of Business?”

What is an Accounting System?

CENTURY 21 ACCOUNTING © Thomson/South-Western

LESSON 1-1LESSON 1-1

Accounting is…..-Planning, recording, analyzing, and interpreting financial information

Planning

Recording

Analyzing

Interpreting

Accounting is…..-Planning, recording, analyzing, and interpreting financial information

Planning

Recording

Analyzing

Interpreting

CENTURY 21 ACCOUNTING © Thomson/South-Western

LESSON 1-1LESSON 1-1

An Accounting System

The process of providing financial data and information to The process of providing financial data and information to management so that they can make accurate/appropriate management so that they can make accurate/appropriate financial decisions.financial decisions.

Accounting RecordsAccounting Records are the organized summaries of the are the organized summaries of the businesses financial activities.businesses financial activities.

WHY IS ACCOUNTING SO IMPORTANT?WHY IS ACCOUNTING SO IMPORTANT?

WHAT ARE SOME CAREER OPPORTUNITIES IN ACCOUNTING?WHAT ARE SOME CAREER OPPORTUNITIES IN ACCOUNTING?

An Accounting System

The process of providing financial data and information to The process of providing financial data and information to management so that they can make accurate/appropriate management so that they can make accurate/appropriate financial decisions.financial decisions.

Accounting RecordsAccounting Records are the organized summaries of the are the organized summaries of the businesses financial activities.businesses financial activities.

WHY IS ACCOUNTING SO IMPORTANT?WHY IS ACCOUNTING SO IMPORTANT?

WHAT ARE SOME CAREER OPPORTUNITIES IN ACCOUNTING?WHAT ARE SOME CAREER OPPORTUNITIES IN ACCOUNTING?

CENTURY 21 ACCOUNTING © Thomson/South-Western

LESSON 1-1LESSON 1-1

CENTURY 21 ACCOUNTING © Thomson/South-Western

LESSON 1-1LESSON 1-1

Why are Financial Statements important?

One Name:

ENRONhttp://www.youtube.com/watch?v=Uxd9AeXft64

CENTURY 21 ACCOUNTING © Thomson/South-Western

LESSON 1-1LESSON 1-1

THE BUSINESS-

Techknow ConsultingService Business- a business that performs an activities for a fee.

Brainstorm some service businesses…..

Proprietorship- a business that is owned by one person. The liability for business losses or any personal or property losses remains with the sole proprietor (owner)

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THE BUSINESS-

Techknow ConsultingService Business- a business that performs an activities for a fee.

Brainstorm some service businesses…..

Proprietorship- a business that is owned by one person. The liability for business losses or any personal or property losses remains with the sole proprietor (owner)

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CENTURY 21 ACCOUNTING © Thomson/South-Western

LESSON 1-1LESSON 1-1

ADVANTAGES VS DISADVANTAGES

OF A PROPRIETORSHIP

ADVANTAGES DISADVANTAGES

EASE OF FORMATIONOWNER CONTROLLEDYOUR OWN BOSSPROFITS ARE NOT SHARED

LIMITED RESOURCESUNLIMITED LIABILITYLIMITED EXPERTISELIMITED LIFEOBLIGATIONS TO FOLLOW LAW

CENTURY 21 ACCOUNTING © Thomson/South-Western

LESSON 1-1LESSON 1-1

THE ACCOUNTING EQUATION

MUST BE IN BALANCE!

ASSETS

LIABILITIES

OWNER’S EQUITY

ASSETS = LIABILITIES + OWNER’S EQUITY

CENTURY 21 ACCOUNTING © Thomson/South-Western

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LESSON 1-1

THE ACCOUNTING EQUATIONTHE ACCOUNTING EQUATION page 8

CENTURY 21 ACCOUNTING © Thomson/South-Western

LESSON 1-1LESSON 1-1

ACCOUNTING CAREERS

CENTURY 21 ACCOUNTING © Thomson/South-Western

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LESSON 1-1

TERMS REVIEWTERMS REVIEW

accounting accounting system accounting records financial statements service business proprietorship asset

equities liability owner’s equity accounting equation ethics business ethics

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