Accounting 11

For this week I want you to do three things. Work on completing your presentation with the intent of understanding the terms, you will have a quiz on them at a later date. Finish/work on Chapter 3 spreadsheet. Watch the excel videos so you know how it works, understand how to format excel sheets, enter text, numbers and formulas.

Class Notes

Presentation #1 – These are some of the key terms to know in Accounting. Create a visual presentation with lots of images and expand on the definitions below.

20 Slides minimum – 20 images minimum

Accounting Terms

  1. Accounting:
    The process of recording, summarizing, and reporting financial transactions to understand a business’s financial health.
  2. Accounting Profession:
    The career field focused on preparing, analyzing, and managing financial information for organizations.
  3. Auditing:
    The process of examining financial records to ensure accuracy and compliance with laws and standards.
  4. Four Types of Business:
    • Sole Proprietorship: Owned by one person.
    • Partnership: Owned by two or more people.
    • Corporation: A separate legal entity owned by shareholders.
    • Cooperative: Owned and operated by a group for mutual benefit.
  5. Accounting Cycle:
    The steps to record, process, and summarize financial data, from transactions to preparing financial statements.
  6. Accountant vs Bookkeeper:
    • Accountant: Analyzes and interprets financial data.
    • Bookkeeper: Records daily financial transactions.
  7. Accounting Equation:
    Assets = Liabilities + Owner’s Equity (shows how a company’s resources are financed).
  8. Accounts Receivable:
    Money customers owe to a business for goods or services provided.
  9. Accounts Payable:
    Money a business owes to suppliers or creditors.
  10. Balance Sheet:
    A financial statement showing a company’s assets, liabilities, and owner’s equity at a specific time.
  11. Assets:
    Things a business owns that have value (e.g., cash, equipment).
  12. Liabilities:
    Debts or obligations a business owes (e.g., loans, unpaid bills).
  13. Owner’s Equity:
    The owner’s share of the business’s assets after liabilities are paid.
  14. GAAP (Generally Accepted Accounting Principles):
    Rules and guidelines for preparing financial statements.
  15. Liquidity:
    How easily assets can be converted into cash.
  16. Capital:
    Money or assets invested in a business by the owner.
  17. Business Transaction:
    An event involving the exchange of money, goods, or services that affects the business’s financial position.
  18. Source Documents:
    Proof of a business transaction (e.g., receipts, invoices).
  19. Account:
    A record of all transactions related to a specific item (e.g., cash account, sales account).
  20. Ledger:
    A book or digital file where all accounts and their balances are recorded.
  21. Debit:
    An entry that increases assets or expenses and decreases liabilities or equity.
  22. Credit:
    An entry that decreases assets or expenses and increases liabilities or equity.
  23. Double Entry Accounting:
    Every transaction affects two accounts (debits = credits).
  24. T-Account:
    A tool for visualizing debits and credits in a simplified format shaped like a “T.”
  25. Account Balances:
    The total amount in an account after debits and credits are considered.
  26. Revenue:
    Money earned by a business from selling goods or services.
  27. Expense:
    Costs a business incurs to operate (e.g., rent, wages).
  28. Drawings:
    Money or assets the owner takes out of the business for personal use.
  29. Income Statement:
    A financial statement showing a company’s revenue, expenses, and profit or loss over a period.
  30. Journal:
    A record of daily business transactions, listed in chronological order.
  31. PST (Provincial Sales Tax):
    A tax on goods and services set by the provincial government.
  32. GST (Goods and Services Tax):
    A federal tax on goods and services in Canada.
  33. Worksheet:
    A tool used during the accounting cycle to organize financial data before creating statements.

SRQ – Section Review Questions
SE –    Section Exercises
CE –   Chapter Exercises

Chapter 3 – Exercises

Page 60-62 – SE (1-3)
Page 65-67 – SE (1-3)
Page 73-75 – CE (1,2,6)

Chapter 4 – Exercises

Page 85/86 – SE (1-3)
Page 94/95 – SE (1-3)
Page 99/100 – SE (1-3)
Page 105/106 – SE (1-3)
Page 114-117 – CE (5 & 6)

Chapter 5 – Exercises

Page 131-133 – SE (1-3)
Page 140-143 – SE (1-6)

Page 154-157 –  CE #7 – set up the spreadsheet, T-accounts, Transactions, Trial Balance, Income Statement

Chapter 6 – Exercises

Use  GST – 5%, PST – 7% (Book says 8%)

Page 171-175 – SE (1-6)
Page 186-190 – SE (1-5)
Page 194 – SE (1,2)
Page 203/204 – SE (1,2)
Page 211-214 – CE (5-7)

Chapter 7 – Exercises

Page 252-257 – CE (7,8)

Page 171-175 – SE (1-6)
Page 186-190 – SE (1-5)
Page 194 – SE (1,2)
Page 203/204 – SE (1,2)

Page 255 – CE #8