EBUS 285 Unit Plan

8/14/2019 EBUS 285 Unit Plan

1/51

Introductionto

AccountingAccounting 10

Module 1A

2007

Tara Manson, Jordan McFarlen, David Campbell

EBUS 285 Unit Plan

11/13/2007


2/51

UNIT PLAN

MODULE 1A: Introduction to AccountingAccounting 10Time Allotment 6 Hours

Overview Statement: The purpose of this unit is to introduce students to the newlanguage of accounting. Students will become familiar with the basic vocabulary ofaccounting and be encouraged to use these new terms in class. Students should becomfortable with these new terms by the end of the unit.

Rationale Statement: Students will recognize that to fully understand accounting andall of its complex aspect, it is crucial that they primarily comprehend the basic language.Students will learn why the study of accounting is important, in order to gain anappreciation for the course they are in. Students will discover the different areas ofaccounting, and recognize that though emphasis is put on financial accounting in this

course, there are other types of accounting. Students will understand the concept of theGenerally Accepted Accounting Principles so that they are aware of why variousprocedures must be followed.

Prerequisite Student Learning: Students require no prerequisite learning to besuccessful in this unit.

Objective: SWBAT understand the basic accounting vocabulary and develop anawareness of why the study of accounting is important.

Content Outline:

Teaching Methods:1. Direction Instruction: This will be used when giving instructions during the

lesson. Primary introductions to new concepts will generally be taught throughdirection instruction.

2. Individual Instruction: This will be used when the students are completingworksheets or copying notes.

3. Interactive Instruction: This will be used when students are working in groups tocreate their presentations and when they are working in partnerships.

4. Task Teaching: Students will be given an outline that states what they areexpected to complete. They will follow the outline when completing theirassignment and ensure that all tasks are met.

Student Activities:1. Students will play bingo using the new accounting vocabulary words they have

learned2. Students will create a presentation on the different forms of business ownerships

to present to the rest of the class.3. Students will research on the internet.


3/51

4. Students will create a budget based on the outlines provided by the instructor.5. Students will complete a self-directed internet activity.

Resources and Materials:

Teacher:

o All handouts and overhead for students are attached to the individuallesson planso Accounting 10, 20, 30 Curriculum Guide

http://www.sasked.gov.sk.ca/docs/account/accounting2003/index.htmlo Fundamental Accounting Principles, 11th Canadian Edition, Volume 1.

Larson and Jensen Students:

o All handouts and overheads are attached to individual lesson plans

Evalutation:1. Of the extent to which students achieve learning goals

a. Students will complete a unit test that encompasses the vocabulary wordsthat have been learnt throughout the unit and achieve a mark of at least70%

b. Students will identify why they believe the study of accounting is important2. Of unit effectiveness

a. Hand out a Student Assessment sheet to the students that will ask themwhat they thought about the unit. (Attached to unit plan)

b. Use the Unit Feedback sheet to assess the overall effectiveness of theunit. (Also attached unit plan)


4/51

Course Outline

Objective 1.1, 1.2

1.1 Objectives - To recognize and use the basic vocabulary of accounting in

classroom discussions and assignments.

1.2 Objectives - To distinguish between accounting and bookkeeping.

These objectives were put together because they are similar and describingeach wouldnt take an entire period.

Objective 1.3

1.3 Objectives - To develop and propose why the study of accounting is

important.

This objective was chosen because it is foundational to studentsunderstanding why we do accounting and why it is important.

Objective 1.4

1.4 Objectives - To identify and explain the basic differences betweenfinancial accounting, cost accounting, and management accounting.

This objective was chosen because it gives students an idea of the different

types of accounting and to show there are different fields that they could gointo.

Objective 1.5

1.5 Objectives - To distinguish and explain the advantages anddisadvantages of each form of business ownership.

This objective was incorporated into the unit because it shows the importanceof different types of ownership and the advantages and disadvantages of each.

Objective 1.6

1.6 Objectives - To identify different types of business enterprises:resources, manufacturing, merchandising and service, and suggest

where they are most appropriate.

This objective was chosen because it shows the different types of businessesthat exist and understanding how they work.


5/51

Objective 1.7

1.7 Objectives - To develop and state the role of the manufacturer,producer, wholesaler, retailer, consumer, and citizen in the business

world.

This objective was left out because of its similarity to objective 1.6 and didntoffer a lot of new information.

Objective 1.8

1.8 Objectives - To develop and explain the concept and acceptance ofGenerally Accepted Accounting Principles (GAAPs).

This objective was included because the GAAPs are a vital component to

understanding accounting.


6/51


7/51

After our lesson plans were completed, we decided to focus on the other

components of the unit plan. We discussed some of the key points, and decided on

another afternoon to meet again. When we met again, we all brought our laptops so

that we could each work on different components of the unit plan. We were able to

discuss essential matters as we were working on them. Once we thought that we had

completed our unit plan, we decided that we also wanted to create a unit test so we got

together to compile questions.


8/51

Professional Target for Unit:Planning the Teaching Unit

Unit level, grade level, subject area, and estimated time stated? Yes__ No__Comments:

Rational statement adequate for explaining why it is important for students when teaching theunit? Yes__ No__Comments:

Unit objectives clear and measurable? Yes__ No__Comments:

Content outline clear and in appropriate sequence? Yes__ No__Comments:

Prerequisite student learning identified? Yes__ No__Comments:

Variety and balance of appropriate teaching methods and student activities?

Comments: Yes__ No__

Suitable variety of resources and materials listed? Yes__ No__Comments:

Assessments congruent with objectives? Yes__ No__Comments:

Additional observations or comments?


9/51

LESSON PLAN Subject: Accounting 10

Materials/Aids Required: Accounting Vocabulary Bingo Game, chips/Beans for thegame, vocabulary flashcards, overhead of differences between accounting andbookkeeping, overhead projector.

Unit Introduction to AccountingTopic Objective 1.1 1.2 Basic Accounting Terms

ContentThe basic vocabulary of accounting, distinguish between bookkeeping andaccounting

Objectives:

1

SWBAT individually distinguish between specific traits or activities of bothaccounting and bookkeeping, after being instructed on the differences andsimilarities of both, and score a mark of at least seventy percent.

2

SWBAT accurately identify at least 3 of the basic accounting definitions during

each game of Accounting Vocabulary Bingo.

3Pre Requisite Learning: None

Presentation:Set:

Students will enter the class and sit in their assigned seating. I will ask students what words come to mind when they hear the word

accounting. As students offer ideas, I will write these words down on the board. After about six or seven words have been given that remind students of

accounting, I will tell the students that the first step in understanding accountingis becoming familiar with the language.

When you move to a foreign country, what is the first thing you need to do beforeyou can communicate with the locals? You need to learn the language so thatyou are on the same page as them. It is the same with accounting; you need tounderstand the vocabulary so that you can begin to understand the accountingconcepts that coincide with them.

5 min.Development:

I will provide the students with a set of 50 basic accounting vocabulary words onflashcards. I will tell the students that we will be playing a game with thesevocabulary words, and you need to be familiar with these words in order to be

successful in the game. Students will be matched up in partners and asked to use the flashcards to learn

the new terms. Students will take turns quizzing one another on the basicdefinitions.

After ten minutes, I will call the class back together as a group. I will explain thatanother primary idea of accounting is being able to recognize the differencesbetween accounting and bookkeeping.

I will put an overhead on the board for students to copy out which outlines the


10/51

roles and activities of an accountant, the roles and activities of a bookkeeper,and the differences of each.

Students will be given a worksheet with ten activities of both accountants andbookkeepers. They will be asked to determine which activities would becompleted by an accountant, and which activities would be completed bybookkeepers.

After seven minutes, I will ask the students to exchange their work with anotherstudent. I will correct the worksheet with the students by having them read thequestion and provide the answer, and I will tell them if their answer is correct ornot.

I will begin to explain the Accounting Vocabulary Bingo Game. You will be given Bingo cards with the accounting terms you have been learning.

I will call out the definition and you will place a chip/bean on the correspondingterm. When you have five chip/beans in a row, you can call Bingo.

Students may use the list of vocabulary words if they are struggling withremembering the terms.

I will ask one student to hand out the bingo cards and one student to hand outthe chips/beans.

When a student has five chips/beans aligned in a row, they are eligible to callBingo.

When one student calls Bingo, the rest of the students must stop the activity. Iwill tell the students which definitions have been called so that the students maycorrect their own bingo cards. After each game, I will ask students how manydefinitions they had correct for that round.

42 min.Closure:

I will thank the students for working effectively today, and ask the students thathanded out the materials to pick them up and bring them back to me.

I will explain to the students that it is essential we remember the new vocabulary

words we learned today, so we will be using the flash cards from time to time torefresh our memories. I will also tell the students that a pop quiz of basic accounting vocabulary will be

given at some point in the near future, so they should be prepared for such anoccasion.

3 min.

Evaluation:Obj. #1 I will have the students read the question and provide the answer. I will

tell the students the correct answer, and have them correct the work ofanother student and record their marks to me.

Obj. #2 Accounting Vocabulary Bingo Game, when a student calls Bingo, all

students will be asked to stop. I will go through the definitions that I havecalled and students will be asked to mark the work of the student besidethem. I will ask for the marks of each student.

Obj. #3Target for Professional Growth:

Clear/concise instructions


11/51

Common Essential Learnings:

Communication (COM) students will engage in a class discussion Personal and Social Values and Skills (PSVS) students will work in

partnerships to practice the accounting vocabularyAdaptations:

Students that are struggling with the new terms may use a master copy of all ofthe definitions with their terms for the bingo game

Advanced students will be paired with less able students during the use of theflashcards

If a student is deaf and cannot hear the definitions being called out, the instructorwill also place an overhead of the instruction on an overhead projector for thatstudent to read


12/51

Accounting Vocabulary

1. Account - Formal record that represents, in words, money or other unit ofmeasurement, certain resources, claims to such resources, transactions or other eventsthat result in changes to those resources and claims.

2. Account Payable - Amount owed to a CREDITOR for delivered goods or completedservices.

3. Account Receivable - Claim against a DEBTOR for an uncollected amount, generallyfrom a completed transaction of sales or services rendered.

4. Accountant - Person skilled in the recording and reporting of financial transactions.5. Accounting - Recording and reporting of financial transactions, including the

origination of the transaction, its recognition, processing, and summarization in theFINANCIAL STATEMENTS

6. Adjusting Journal Entry - An accounting entry made into a subsidiary ledger calledthe General journal to account for a periods changes, omissions or other financial datarequired to be reported "in the books" but not usually posted to the journals used fortypical period transactions.

7. Balance - Sum of DEBIT entries minus the SUM of CREDIT entries in an ACCOUNT. If

positive, the difference is called a DEBIT BALANCE; if negative, a CREDIT BALANCE.8. Balance Sheet - Basic FINANCIAL STATEMENT, usually accompanied by appropriate

DISCLOSURES that describe the basis of ACCOUNTING used in its preparation andpresentation of a specified date the entity's ASSETS, LIABILITIES and the EQUITY of itsowners. Also known as a STATEMENT OF FINANCIAL CONDITION. .

9. Cash Flows - Net of cash receipts and cash disbursements relating to a particularactivity during a specified accounting period.

10. Credit - Entry on the right side of a DOUBLE-ENTRY BOOKKEEPING systemthat represents the reduction of an ASSET or expense or the addition to a LIABILITY orREVENUE. (See DEBIT.)

11. Credit Balance - BALANCE remaining after one of a series of bookkeepingentries. This amount represents a LIABILITY or income to the entity. (See BALANCE.)

12. Current Asset - ASSET that one can reasonably expect to convert into cash,sell, or consume in operations within a single operating cycle, or within a year if morethan one cycle is completed each year.

13. Current Liability - Obligation whose LIQUIDATION is expected to require theuse of existing resources classified as CURRENT ASSETS, or the creation of othercurrent liabilities.

14. Debit - Entry on the left side of a DOUBLE-ENTRY BOOKKEEPING system thatrepresents the addition of an ASSET or expense or the reduction to a LIABILITY orREVENUE. (See CREDIT.)

15. Debit Balance - BALANCE remaining after one or a series of bookkeepingentries. This amount represents an ASSET or an expense of the entity. (See BALANCE.)

16. Equity - Residual INTEREST in the ASSETS of an entity that remains afterdeducting its LIABILITIES. Also, the amount of a business' total assets less total

liabilities. Also, the third section of a BALANCE SHEET, the other two being assets andliabilities.

17. Equity Account - ACCOUNT in the EQUITY section of the BALANCE SHEET.Includes CAPITAL STOCK, ADDITIONAL PAID IN CAPITAL and RETAINED EARNINGS

18. Error - Act that departs from what should be done; imprudent deviation,unintentional mistake or omission.

19. Financial Statements - Presentation of financial data including BALANCESHEETS, INCOME STATEMENTS and STATEMENTS OF CASH FLOW, or any


13/51

supporting statement that is intended to communicate an entity's financial position at apoint in time and its results of operations for a period then ended.

20. Fiscal Year - Period of 12 consecutive months chosen by an entity as itsACCOUNTING period which may or may not be a calendar year. Fixed Asset - Anytangible ASSET with a life of more than one year used in an entity's operations.

21. General Ledger - Collection of all ASSET, LIABILITY, owners EQUITY,

REVENUE, and expense accounts.22. Generally Accepted Accounting Principles (GAAP) - Conventions, rules, and

procedures necessary to define accepted accounting practice at a particular time. Thehighest level of such principles are set by the FINANCIAL ACCOUNTING STANDARDSBOARD (FASB).

23. Going Concern - Assumption that a business can remain in operation longenough for all of its current plans to be carried out.

24. Gross Income - The beginning point for the determination of income, includingincome from whatever sources derived.

25. Income Statement - Summary of the effect of REVENUES and expenses over aperiod of time.

26. Intangible Asset - Asset having no physical existence such as trademarks and

patents. (See TANGIBLE ASSET.)27. Inventory - Tangible property held for sale, or materials used in a production

process to make a product.28. Journal - Any book containing original entries of daily financial transactions.29. Liability - DEBTS or obligations owed by one entity (DEBTOR) to another entity

(CREDITOR) payable in money, goods, or services.30. Limited Liability Partnership (LLP) - GENERAL PARTNERSHIP which, via

registration with an appropriate state authority, is able to enshroud all its partners inlimited liability. Rules governing LLPs vary significantly from state to state.

31. Limited Partnership - PARTNERSHIP in which one or more partners, but notall, have limited liability to creditors of the partnership.

32. Loss - Excess of EXPENDITURES over REVENUE for a period or activity. Also,

for tax purposes, an excess of basis over the amount realized in a transaction. (See NETINCOME.)

33. Lower of Cost or Market - Valuing ASSETS for financial reporting purposes.Ordinarily, "cost" is the purchase price of the asset and "market" refers to its currentreplacement cost. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) requiresthat certain assets (e.g., INVENTORIES) be carried at the lower of cost or market.

34. Matching Principle - A fundamental concept of basic accounting. In any onegiven accounting period, you should try to match the revenue you are reporting with theexpenses it took to generate that revenue in the same time period, or over the periods inwhich you will be receiving benefits from that expenditure. A simple example isdepreciation expense. If you buy a building that will last for many years, you don't writeoff the cost of that building all at once. Instead, you take depreciation deductions overthe building's estimated useful life. Thus, you've "matched" the expense, or cost, of the

building with the benefits it produces, over the course of the years it will be in service. 35. Net Income - Excess or DEFICIT of total REVENUES and GAINS compared with

total expenses and losses for an ACCOUNTING period. (See INCOME and LOSS.)36. Net Sales - Sales at gross invoice amounts less any adjustments for returns,

allowances, or discounts taken.

37. Net Worth - Similar to EQUITY, the excess of ASSETS over LIABILITIES38. Partnership - Relationship between two or more persons based on a written,

oral, or implied agreement whereby they agree to carry on a trade or business for profitand share the resulting profits. Unlike a CORPORATION'S shareholders, the


14/51

partnership's general partners are liable for the DEBTS of the partnership. (SeeGENERAL PARTNERSHIP, LIMITED LIABILITY PARTNERSHIP, LIMITEDPARTNERSHIP.)

39. Prepaid Expense - Cost incurred to acquire economically useful goods orservices that are expected to be consumed in the revenue-earning process within theoperating cycle.

40. Ratio Analysis - Comparison of actual or projected data for a particularcompany to other data for that company or industry in order to analyze trends orrelationships

41. Receivables - Amounts of money due from customers or other DEBTORS.42. Revenue Recognition - Method of determining whether or not income has met

the conditions of being earned and realized or is realizable.43. Revenues - Sales of products, merchandise, and services; and earnings from

INTEREST, DIVIDEND, rents.

44. Tangible Asset - ASSETS having a physical existence, such as cash, land,buildings, machinery, or claims on property, investments or goods in process. (SeeINTANGIBLE ASSETS.)

45. Unearned Income - Payments received for services which have not yet been

performed.46. Working Capital - Excess of CURRENT ASSETS over CURRENT LIABILITIES47. Accounting Equation: The accounting equation is assets=liabilities+capital.

This equation is the basis of a balance sheet and double-entry accounting.48.Assets - Anything owned by an individual or a business, which has commercial or

exchange value. Assets may consist of specific property or claims against others, incontrast to obligations due others. Assets are things of value held (usually owned) bythe business. Assets are balance sheet accounts. Examples are cash, accountsreceivable, inventory, and fixed assets.

49.Bookkeeping - The practice involved in the systematic recording of transactionsaffecting a company beginning with the data-entry process and ending with thepreparation of financial statements. The art, practice, or labor involved in thesystematic recording of the transactions affecting a business.

50. Capital - Also known as Owner's Equity and Net Assets, it is the result ofsubtracting Liabilities from Assets. Businessmen will use the term "Capital" to describethe amount of money or other resources owned or used to acquire future income or

benefits. The amount subscribed and paid by stockholders.


15/51

ACCOUNTING:

Accounting is a four stage process ofrecording, classifying, summarizing and the

interpretation of the financial statements.

The four stage process are defined below:

Recording- transactions being recorded in the books of the business

Classifying- sorting and categorizing into meaningful and orderly types or manners

Summarizing- the accounting data are summarized

Interpreting- financial data are analyzed and used to assist decision making

BOOKKEEPING:

Bookkeeping is a part of Accounting. It is merely a mechanical aspect of

recording, classifying and summarizing transaction.

Therefore, keeping the books of accounts is always the theme in bookkeeping.

The finer aspect of interpreting all these data into information for management to

act upon is excluded.


16/51

What is Bookkeeping?

There are eight steps to the bookkeeping cycle. A bookkeeper is a person that performs oneor more of these steps. In large companies, for instance, the bookkeeping cycle might bedivided into departments such as Accounts Receivable, Accounts Payable, or Payroll. While mostoften these people are referred to as "clerks", they might also be considered bookkeepers asthey are "keeping the books" for a company. In small companies, the bookkeeper may performthe entire bookkeeping process, or might just enter data to give to the "accountant".

All bookkeeping steps are mechanical in nature. Bookkeeping is a regimented processusually occurring in monthly cycles consisting of entering transactions into the journals, makingadjustments, and preparing reports. The Accounts Receivable Clerk may be assigned to enter allsales on account, and all payments from the customers. The Accounts Payable Clerk'sresponsibility would be to enter purchase orders and checks. Again, in a small company, bothduties may be performed by the same person.

The full-charge bookkeeper is someone who can do it all - including compiling the data into the

General Ledger and preparing financial statements.

What isAccounting?

Someone has to set up the bookkeeping system, monitor it, and interpret the results. Theseprocesses are called "Accounting." The accounting process is much less mechanical andmore subjective. It begins with designing a system that will benefit the business, by capturingthe financial information in a useful manner without being overly burdensome to thebookkeeper. Once set up, the accountant monitors the system to ensure it's doing what it's

suppose to do. And finally, on a monthly basis usually, the accountant presents the financialstatements to the business management in such a way that decisions can be made.

Since accounting requires an understanding of the bookkeeping process, accountantstypically supervise the bookkeepers. In a large corporation there may be several, possibly eventhousands of accountants. One will be designated as the "Controller" who oversees the entireaccounting and bookkeeping system.

In a small business, one person, often a freelancer (a contract accountant) will perform all thephases ofaccounting and bookkeeping for a company. Since "Accountant" is the moreprestigious title, most small business jack-of-all-trades call themselves an "Accountant".

It merits some note that a few states actually regulate the use of the title "Accountant". Inthese states, the "Accountant" title is reserved for CPA's only. This does not necessarily coincidewith the definition of an accountant since most CPA's don't perform the role of an "Accountant"as described above and many people that perform the accountant's roles are not CPA's.Nevertheless the laws define it as such.


17/51

Universal's course trains in bookkeeping and accounting. The first module emphasizes thebookkeeping process, although it does address the proper setup of the accounting system.Modules two and three include some bookkeeping practice, but emphasize the set up andinterpretation of the accounting process.

Therefore, most of our graduates, in states that permit use of such a title, refer to themselvesas "Accountants".


18/51

Differences Between Accounting & Bookkeeping

In each question, please write A for accounting or accountants role or Bfor bookkeepingor bookkeepers role in the space provided.

1.These people are often referred toas clerks

2. In smaller companies, these peoplemay just perform data entry.

3.This process is much lessmechanical and more subjective.

4. Monitors the system to ensure itsdoing what it's supposed to do.

5. It is merely a mechanical aspect ofrecording, classifying andsummarizing transaction.

6. It begins with designing a systemthat will benefit the business, bycapturing the financial informationin a useful manner without beingoverly burdensome to thebookkeeper.

7. In large companies, for instance,this cycle might be divided intodepartments such as AccountsReceivable, Accounts Payable, orPayroll.

8. Is a four stage process of recording,

classifying, summarizing and theinterpretation of the financialstatements.

9.These people usually superviseothers duties and ensure that all isbeing performed correctly.

10.This person presents the financialstatements to the businessmanagement in such a way thatdecisions can be made.


19/51

Differences Between Accounting & Bookkeeping

In each question, please write A for accounting or accountants role or Bfor bookkeepingor bookkeepers role in the space provided.

1.These people are often referred to

as clerks B2. In smaller companies, these people

may just perform data entry. B

3.This process is much lessmechanical and more subjective. A

4. Monitors the system to ensure itsdoing what it's supposed to do. A

5. It is merely a mechanical aspect ofrecording, classifying andsummarizing transaction. B

6. It begins with designing a system

that will benefit the business, bycapturing the financial informationin a useful manner without beingoverly burdensome to thebookkeeper. A

7. In large companies, for instance,this cycle might be divided intodepartments such as AccountsReceivable, Accounts Payable, orPayroll. B

8. Is a four stage process of recording,classifying, summarizing and the

interpretation of the financialstatements. A

9.These people usually superviseothers duties and ensure that all isbeing performed correctly. A

10.This person presents the financialstatements to the businessmanagement in such a way thatdecisions can be made. A


20/51

References

(June 17, 2006). Understand the difference between accounting and bookkeeping.

Retrieved November 9, 2007, from

http://basiccollegeaccounting.com/understand-the-difference-between-

accounting-and-bookkeeping/.

(2007).Learning accounting and bookkeeping basics: Am I an accountant or a

bookkeeper? What is the difference?Retrieved November 9, 2007, from

http://72.14.253.104/search?q=cache:CwTnog5zBowJ:faculty.dccc.edu/~alynn/Diffe

rence%2520between%2520a%2520bookkeeper%2520and%2520accountant.doc+acco

unting+and+bookkeeping+differences&hl=en&ct=clnk&cd=2&gl=ca . Home page

http://www.dccc.edu/faculty/ .


21/51

LESSON PLAN Subject: __Accounting 10_

Materials/Aids Required: Chalk or Markers for board

Unit Introduction to Accounting

Topic Why accounting is important

Content Understanding how we use accounting in our everyday lives

Objectives:

1SWBAT identify ways that accounting is used in everyday life by creating abudget that details things they purchase regularly and will have a mark assignedby how realistic they are.

2

3

Pre Requisite Learning: None

Presentation:Set:

How much money do you spend in a month? What do you buy?

What do you think the average cost per month is for someone who is living ontheir own? 5 min.

Development:Students will have to budget for one month. Students will say what expenses

they think should be on the budget, write ideas on the board.

The minimum that they include should be Rent, Groceries, Utilities, Credit Card(imagine one if you dont have one), Car (imagine if you dont have one) andall expenses related, Cable/Phone/Internet, and Entertainment.

One thing not included in the budget was saving because I want to see howthey will budget their money and how much will be left over since everyonesbudget will be different.

Budgets should range between $1200 $1600/mo (potentially could be less,but with sacrificing area of town, or other items).


22/51

Then we will look at a savings budget. How much should you be setting asideper month? Is there anything you are saving for? How long until youachieve your goal?

Afterward we will add both budgets together to find a total amount per month

that is spent on both savings and expenses.

Then we will decide how much students need to be earning in a year to beable live in the manner that they have budgeted for.

35 min.

Closure:

Students will see one form of how accounting affects their everyday lives.Show students how expenses and savings would be recorded in the GeneralJournal, General Ledger, and Balance Sheet.

10 min.

Evaluation:Obj. #1 Students will hand in their budgets to assess how realistic they are in their

budgeting. Marks will be based out of 5. 1 being not realistic, 5 beingvery realistic.

Obj. #2Obj. #3

Target for Professional Growth: Maintain eye contact with students

Common Essential Learnings: COM Adding new words to the students vocabulary such asbudget and expense to use in everyday speech in an accounting sense.

PSVS Giving students the knowledge to become smarter consumers and budget their moneybetter, and become productive members of society

NUM Students will be required to calculate a budget based on estimation of expenses.

Adaptations: ADHD student in the class, give him the opportunity to write the classssuggestions on the board. This will keep him occupied as well as engaged in the lesson.


23/51

LESSON PLAN Subject: __Accounting 10_____

Materials/Aids Required: Computer lab (one computer for each student), Whiteboard,Markers for whiteboard, Overhead, Overhead sheets, Markers for overhead, TeacherNotes, In Class Assignment

Unit Introduction to Accounting

Topic Objective 1.4 Identify and explain the basic differences between financialaccounting, cost accounting, and management accounting.

Content Introducing financial accounting, cost accounting, and managementaccounting and recognizing the differences between the three.

Objectives:

1 Given instruction on the three main types of accounting SWBAT correctly definethem.

2After being introduced to and instructed on the three main types of accountingSWBAT accurately explain the basic differences between the three types.

3


Presentation:Set:

Begin the class with a guided class discussion recapping what was learned in theprevious class (Why the study of accounting is important). Ask students whykeep records? What is the purpose of financial records? Why is accountingimportant? Prompt students to give answers to these questions and discuss eachanswer as a class. If students are not giving out answers then begin to hint atanswers. Remind students that accounting information can help people to makebetter business decisions. (See the lesson plan from the previous class [1.3] forthe answers to these questions).

5 min.

Development:Part 1

After a quick recap of last class, announce to students that today they will belearning about the three main types of accounting. The three main types ofaccounting are FINANCIAL ACCOUNTING, COST ACCOUNTING, andMANAGEMENT ACCOUNTING. Write the three types of accounting on thewhiteboard. Explain to students that accounting is used by many different people


24/51

for various reasons. Let students know that these three types all have differentuses as well as different users.

(510 min.) Then ask all students to sign on to their computers and use theinternet to research each of the three types of accounting mentioned. Explain tostudents that they are to record the information they get on each type ofaccounting on a piece of paper in the notebooks. Let them know that they are to

be researching to try and get a basic definition, key characteristics, and ifpossible, examples for each of the three types. Encourage students to only usesites that seem valid and to stay off any unrelated sites. After the researching,students should each have their own piece of paper with information on the threetypes of accounting.

Once the students have finished researching the definitions/characteristics ofeach type, they will be discussed as a class. Using the overhead, separate thesheet into three columns. In the first column write the heading FinancialAccounting. Ask the students what definition/characteristics of FinancialAccounting they found while researching. If students are reluctant to answer thanhint at part of the definition. As students suggest answers discuss them as aclass, if they are wrong, help the students to understand why. While students are

providing answers, if they are correct than write it down under the FinancialAccounting section on the over head sheet. Make sure that students are writingdown this information in their notebooks. The answers do not have to be theexact same as the teachers but they should be fairly similar. After FinancialAccounting, make the next column Cost Accounting and the third columnManagement Accounting. Go through all three as a class, making sure to writedown the definition/characteristics of each one in the designated column. Aftergoing through all three types write down the example of all three types on thewhiteboard and briefly discuss.

Definitions Financial Accounting Area of accounting aimed at serving external users. Its

primary objective is to provide EXTERNAL reports called financial statements to

help users analyze an organizations activities. External users rely on GAAP tomake sure statements are reliable. Some external users are shareholders,lenders, directors, customers, suppliers, regulators, lawyers, brokers, andthe press.

Cost Accounting The process of accumulating the information that managersneed about the various costs within the organization.Concerned with thereporting of costs (assets and expenses) as accurately as possible.-does not follow GAAP

Management Accounting is the area of accounting aimed at serving thedecision-making needs of INTERNAL users. Managerial accounting provides

special-purpose reports customized to meet the information needs of internalusers.-does not follow GAAP

Example of the three types of accounting If a company buys a new truck, does it record the purchase with or without tax

(cost accounting)? After five years, does it spend $4,000 on repairs, or does itsell the truck (management accounting)? What amount has been reported on thefinancial statements for the truck in the last five years (financial accounting)?


25/51

20 min.

Part 2 After all of the discussion, turn off the overhead and hand out the In Class

Assignment to all students (see attached In Class Assignment). The In ClassAssignment is to be completed individually. It is a very basic assignment that isused to reinforce the information touched on in todays class. The assignmentshould only take about 7-8 minutes.

Once this time has passed then have all students exchange papers with theperson next to them or behind them (depending on the setup of the computerlab). All students should now have the paper of someone else in the class. The InClass Assignment will now be marked as a class. Lead the marking by goingthrough each question aloud and then asking for the correct answer, explaineach answer given, if it is not correct ask students if they can explain why. Gothrough all questions as a class except for #8 (it will be marked when handed in).

After questions 1-7 are marked then ask students to hand in the assignments at

the front of the class so that question 8 can be marked and then handed backnext day.

Answers to In Class Assignment

1. Financial accounting, Cost accounting, Management accounting2. Financial accounting3. Cost accounting, Management accounting4. Generally Accepted Accounting Principles5. Cost accounting6. Management accounting7. Financial accounting8. Various answers are acceptable.

-Financial accounting follows GAAP, the other two do not-Cost and Management accounting are both internal, Financial is external-Financialfinancial statements, Costcosts, Managementdecision making*Look off of the definition/characteristics sheet done in class when marking thisquestion.

15 min.Closure:

Once students are all back in their seats engage students in a guided classdiscussion to wrap things up. Review the material that was covered in todaysclass. Ask students what Financial accounting is? Ask students what Costaccounting is? Ask students what Management accounting is? (See definitions).

Also ask students if anyone can think of an example situation that includes all ofthe three types of accounting mentioned (this may be tough as students dontvery much accounting knowledge yet). Then let students know that next day theywill be learning about the different forms of business ownership.

5 min.


26/51

Evaluation:Obj. #1 Judging by the answers to question #1 of the In Class Assignment it will

be evident whether or not students are able to correctly identify the threemain types of accounting.

Obj. #2 After marking question #8 of the In Class Assignment it will be evident

whether or not students are able to basic differences of the three maintypes of accounting.

Obj. #3

Target for Professional Growth:VoiceMake sure to speak clearly and loud enough to be heard at the back of the classroom.Try to also work on speaking with enthusiasm to help motivate students throughout theclass.

Comments:

Common Essential Learnings: Technological Literacy (TL) Students are to research three definitions on the

internet. This requires them to be able to decide which sites they feel are validand also to use the skills needed to find this information.

Independent Learning (IL) Students are to research the three definitions on theinternet individually and are therefore learning about the definitions on their own.

Adaptations: Adaptations for a student who is deaf or hard of hearing. Firstly this student

would be paired up with a strong student in the class who is to write downinformation for the deaf student when there are group discussions etc. or theteacher explains some important information. The teacher will make sure thatprior to class they have created handouts for the hard of hearing student thatexplains any of the directions etc. that the teacher might have planned to stateorally for that day. Also when marking the assignment in todays class theteacher will have an extra copy of the answers for questions 1-7 for the hard ofhearing student so that they will know the answers when marking theassignment.


27/51

THE THREE MAIN TYPES OF ACCOUNTING

1. List the three main types of accounting.

1. ________________________

2. ________________________

3. ________________________

2. This type of accounting is concerned with the preparation of financial statements.

3. Which two types of accounting do not follow the GAAP?

4. What does GAAP stand for?

5. Which type of accounting is mainly concerned with the reporting of costs?

6. This type of accounting is concerned with internal decision making.

7. This type of accounting provides information to those who are external to the

company.


28/51

8. Briefly explain the basic differences of the three main types of accounting. This can

be done in any method you see fit (point form, table, paragraph etc.).


29/51

LESSON PLAN Subject: Accounting 10

Materials/Aids Required: Individual access to computers and internet, overhead ofdifferent forms of business ownerships, outline for presentation, overhead projector

Unit Introduction to AccountingTopic Objective 1.5 Different Forms of Business Ownership

ContentDistinguish and explain the advantages and disadvantages of each form ofbusiness ownership

Objectives:

1

SWBAT individually distinguish characteristics of the various forms of businessownership with 70% accuracy, after discussing an overhead outlining thesecharacteristics.

2

SWBAT use the internet, textbook, or any variety of resources to create a fiveminute presentation of their given topic, in groups of four to five to present to the

class during the next day, which encompasses all components of the providedoutline.

3


Presentation:Set:

Students will enter the class and sit in their assigned seating. I will have three different forms of business ownerships on the board and ask the

student what they notice about these businesses. I will ask what they recognizeas differences between them.

Examples will include: Miss Mansons Manicures Sole Proprietorship,McDonalds franchise, Petro-Canada crown corporation, Bob and JoansPancakes - partnership

If students are hesitant to offer ideas I will prompt them with questions such as:Who owns this business?

I will explain to the students that there are a variety of different forms of businessownerships and that today we will be learning about them.

5 min.Development:

I will put an overhead outlining the different forms of business ownerships on the

board. As a class, we will discuss each form, think of examples, and thestudents will write them down in their notebooks.

I will put the students in groups of four to five and explain the activity to them. They will be given the remainder of the class to find a business that matches

their form of business ownership. They will create a five minute presentation toshow the class, which encompasses all of the outlines on the outline that isprovided.

Next lesson they will present their findings and be evaluated by both their peers


30/51

and the instructor.44 min.

Closure:

I will remind the students that their presentations are due next class. If theyrequire more time they will have to meet with their groups outside of school.

1 min.

Evaluation:Obj. #1 During the class discussion, the students will mark one anothers work.Obj. #2 Students will be marked on the presentation portion of their presentation

by their peers. The students will be given an evaluation tool created bythe instructor.

Obj. #3 Students will be marked on the inclusion of all components of thepresentation by the instructor and will be given this outline before theycreate their presentation.

Target for Professional Growth:

Classroom management, ensure that students are on task in their workinggroups

Common Essential Learnings:

Communication (COM) students will engage in a class discussion and verballyinteract with one another during the planning for the group presentation

Personal and Social Values and Skills (PSVS) students will be working in smallgroups to collectively create a presentation

Critical and Creative Thinking (CCT) students will be encouraged to find aninteresting and original way to present to the class

Technological Literacy (TL) students will use the internet to research for theirpresentations

Adaptations: Advanced students will be paired with less able students for the presentation If an autistic student does not want to work in the group setting, he or she will be

given the same assignment with fewer allotments for each and will not have topresent their findings to the class. He or she will simply hand in a short paperthat answers all of the questions.


31/51

Business Ownerships Presentation

The inclusion of the following things is essential to receive full marks for thispresentation. When creating the presentation, please refer to this outline to ensure thatall components are included.

Name of your business ownership 1 markDefinition and description of ownership 4 marksAdvantages of ownership 4 marksDisadvantages of ownership 4 marksGuideline of laws that come with ownership 3 marksExamples of ownership 2 marksOwner/shareholder status 2 marks

TOTAL 20 marks

Description 1 2 3 4

Name of business ownership wasincluded.

N\A N/A N/A

Definition and description ofownership was accurately given ingreat detail.

At least four advantages ofownership were included with

reasoning.

At least four disadvantages ofownership were included withreasoning.

A guideline of laws that come withownership was included withdetails on responsibility of anyliability on debt, et c.

N/A

At least two different examples of

ownerships were included.N/A N/A

Owner/shareholder status wasidentified. N/A N/A


32/51


33/51

Different Forms of Business Ownerships

SOLE PROPRIETORSHIPS

The vast majority of small businesses start out as soleproprietorships. These firms are owned by one person, usuallythe individual who has day-to-day responsibility for running thebusiness. Sole proprietors own all the assets of the business andthe profits generated by it. They also assume completeresponsibility for any of its liabilities or debts. In the eyes of thelaw and the public, you are one in the same with the business.

PARTNERSHIPS

In a partnership, two or more people share ownership of a singlebusiness. Like proprietorships, the law does not distinguishbetween the business and its owners. The Partners should have alegal agreement that sets forth how decisions will be made, profitswill be shared, disputes will be resolved, how future partners willbe admitted to the partnership, how partners can be bought out,or what steps will be taken to dissolve the partnership whenneeded. Many partnerships split up at crisis times and unlessthere is a defined process, there will be even greater problems.They also must decide up front how much time and capital eachwill contribute, etc

CORPORATIONS

A corporation, chartered by the state/province in which it isheadquartered, is considered by law to be a unique entity,separate and apart from those who own it. A corporation can be

taxed; it can be sued; it can enter into contractual agreements.The owners of a corporation are its shareholders. Theshareholders elect a board of directors to oversee the majorpolicies and decisions. The corporation has a life of its own anddoes not dissolve when ownership changes.


34/51

COOPERATIVE CORPORATION

A cooperativeis a legally incorporated business owned andcontrolled by its members. A cooperative is able to enter into

contracts under its corporate name. Liability for the individualmembers of a cooperative is limited to the extent of the value ofshares held. You can only legally structure your business as acooperative if your business is organized as, and will be operatedas, a cooperative according to the Canada Cooperatives Act.

CROWN CORPORATION

Crown corporations are wholly owned federal or provincial

organization, structured like private or independent enterprises.Established to carry out regulatory, advisory, administrative,financial or other services or to provide goods and services,crown corporations generally enjoy greater freedom from directpolitical control than government departments. Although the 1951federal Financial Administration Act (FAA) declared that crowncorporations are "ultimately accountable, through a minister, toParliament, for the conduct of (their) affairs," they are not subject

to budgetary systems or direct control of a minister in the sameway as government departments.

FRANCHISE

A franchise is a form of business organization in which a firmwhich already has a successful product or service (the franchisor)enters into a continuing contractual relationship with otherbusinesses (franchisees) operating under the franchisor's trade

name and usually with the franchisor's guidance, in exchange fora fee.


35/51

References

(June 17, 2006). Understand the difference between accounting and bookkeeping.

Retrieved November 9, 2007, from http://basiccollegeaccounting.com/understand-the-

difference-between-accounting-and-bookkeeping/.

Ward, S. (2007). Choosing a form of business ownership. Retrieved November 10, 2007 from

http://sbinfocanada.about.com/cs/startup/a/formsbusiness_3.htm

(2006). Forms of business ownership. Retrieved November 8, 2007 from

http://www.allbusiness.com/business-planning-structures/starting-a-business/674-1.html.

Tupper, A. (2006). Crown corporation. Retrieved November 8, 2007 from

http://www.thecanadianencyclopedia.com/index.cfm?PgNm=TCE&Params=A1ARTA0002048

Schwab, C. (2007). Investor words. Retrieved November 8, 2007 from

http://www.investorwords.com/2078/franchise.html


36/51


37/51

At the end of class give each student a handout of definitions of the businesstypes.

10 min.

Evaluation:Obj. #1 Students will hand in their list (one list per pair) with their definitions and

companies of each type, to check for understanding.

Obj. #2

Obj. #3

Target for Professional Growth: Classroom management, ensure that all pairs are ontask and not doing anything they arent supposed to be doing.

Common Essential Learnings:TL Students will be using the computer to locate and understand information about differenttypes of businesses and then applying that knowledge to look up specific businesses inCanada.

IL Students will be searching for the information on businesses on their own and findingbusinesses to relate back to the information the have looked up to help find their own meaningto the information.

CCT Students will generate ideas about what each type of business is, then will apply theinformation by thinking up three companies in each category.

Adaptations: Blind student in the class. Will have her paired up with one of the strongerstudents in the class to ensure that she is getting the proper understanding.


38/51

LESSON PLAN Subject: ______Accounting 10______

Materials/Aids Required: Overhead, Overhead sheets, Overhead markers, GAAPdefinitions sheet, GAAP assignment

Unit Module 1A Introduction to Accounting

Topic Objective 1.8 Develop and explain the concept and acceptance ofGenerally Accepted Accounting Principles (GAAP).

Content Introduce students to the Generally Accepted Accounting Principles andexplain why they are needed.

Objectives:

1 Given instruction on the Generally Accepted Accounting Principles SWBATaccurately identify at least 7 out of 10 of the correct answers on the GAAPassignment.

2After completing an assignment on the GAAP SWBAT correctly create six of theirown statements/scenarios involving the GAAP.

3


Presentation:Set:

Begin todays lesson by letting the students know that they will be learning aboutthe Generally Accepted Accounting Principles. Ask the students if they have anyknowledge of the GAAP or have heard of them before? Prompt students into adiscussion as to why accounting principles might be important. If students arentparticipating then explain the need for principles and ethics in any field of work tomake sure information is reliable. Use the analogy of a scorekeeper at abasketball game, although the rules a scorekeeper follows arent quite as formalas the GAAP. A scorekeeper is to adjust the score sheet to the correct scoreevery time a basket is scored and then credit the amount of points to the playerwho scored. If the scorekeeper doesnt credit the right player for points than the

score sheet is not a reliable source of information for opposing teams. Theopposition may rely on the score sheet as a means for scouting the other teamand therefore they need reliable, consistent, and comparable score sheets donefrom each game. This analogy is done to relate the importance of reliableinformation to students. Discuss as a whole class and ask students for any linesof work they can think of that relate to this.

7 min.


39/51

Development: Students will now be introduced to the Generally Accepted Accounting Principles

(GAAP). Begin by writing the definition of GAAP on the overhead and havingstudents copy it into their notes. Definition:

Generally Accepted Accounting Principles The rules that make upaccepting accounting principles. Their primary purpose is to make information in

financial statements relevant, reliable, consistent, and comparable.Emphasize to students that the primary purposes are important for them to knowwhy we need GAAP. Also write down on the overhead sheet that the CanadianInstitute of Charted Accountants (CICA) sets the GAAP.

While students are copying the definition down explain to them that informationthat has relevance can affect the types of decisions made by users. Informationmust have reliability for decision makers to depend on it. Consistency ensuresthat information is prepared using the same accounting procedures from oneaccounting period to the next. If companies use similar practices, users are ableto compare companies and the information possesses comparability. Letstudents know that many people use the information from financial statementsand if it does not follow the GAAP and is incorrect than it can lead to people not

being able to make the right decisions. It can have a big affect on businesses etc. Now explain to students that there are 12 Generally Accepted Accounting

Principles and then proceed to write them down on a new overhead sheet withthe students also copying this down.

Generally Accepted Accounting PrinciplesBusiness Entity PrincipleCost PrincipleObjectivity PrincipleGoing Concern PrincipleMonetary Unit PrincipleRevenue Recognition PrincipleTime Period PrincipleConsistency PrincipleConservatism PrincipleMatching PrincipleMateriality PrincipleFull Disclosure Principle

Once students have all of the Principles written down explain to them that todaywe will be focusing on the first six (which are underlined). We will be focusing onthese as they are going to be the most common for what students will befocusing at this point in time. Explain to them that as they move on through theyear the other six principles may be introduced and explained when needed.

Then give each student a copy of the Generally Accepted AccountingPrinciples Definitions sheet (see attached). As a class go over this sheet anddiscuss each definition/example to see if students have any questions. Chooseone student/ask for a volunteer to read a definition out loud to the whole class.Make sure to choose a different student for each principle.

15 min.

Now that the students have been introduced to the GAAPs they are going to be


40/51

given a small assignment to test their understanding of the principles. Hand outthe assignment sheet to each student in the class. (see attached GAAPassignment) Tell students that they will be given approximately 12 minutes tocomplete this assignment individually in class and then we will be marking it as aclass.

Once the allotted time is up ask all students to stop writing and tell them that we

will begin correcting the assignment. Ask all students to hand their papers to theperson behind them and for the person at the back of the row to hand theirs tothe person at the front for marking. Go through each question and first askstudents if anyone thinks they know the correct answer, if no one answers thanask a student to give the answer from the sheet they have in front of them. Aftereach answer is given ask students to explain why this is the answer, if they arehaving trouble ask them to look at their definitions sheet for help.

Answers1. Objectivity Principle2. Revenue Recognition Principle3. Business Entity Principle4. Monetary Unit Principle

5. Cost Principle6. Business Entity Principle7. Objectivity Principle8. Going-Concern Principle9. Revenue Recognition Principle10. Business Entity Principle Once the marking of the paper is complete ask all students to hand the

assignments they marked back to the person in front of them or wherever theperson whose assignment they marked is seated.

When students get their assignments back, to see how well the students did ask

them their marks by a show of hands. Ask everyone who got 10/10 to put theirhand up and see how many people there are. Then ask for 9/9, 8/8, 7/7, Lessthan 7 and see what the numbers are like for the class to see if they grasp theGAAPs.

15 min.

Closure: In closing, recap the six GAAP covered in todays class. Ask the class if

someone can explain one of the GAAPs without looking at their sheet. Try to getone person for each GAAP and if unable to then explain the definition to studentsagain (see definition sheet). After this, ask all students to take a blank sheet ofpaper out of their binders and to create six situations/statements of their own,

write it down on their paper and then indicate which GAAP is affected or defined.This is to be done individually not in groups or pairs. Tell them to create one foreach of the six GAAPs we thoroughly discussed in todays class. This is to behanded in as an exit slip and tell students it will be marked out of 6 and returnedto them at next days class.

12 min.


41/51

Evaluation:Obj. #1 Judging by the number of hands that are raised when asked what mark

they received on the GAAP assignment it will be clear as to whether or notstudents achieved a mark of 7/10 or higher.

Obj. #2 After marking the exit slips that are handed in at the end of class it will be

apparent whether or not students were able to correctly create 6situations/scenarios of their own.

Obj. #3

Target for Professional Growth:Not saying the word guys when referring to the whole class.Refer to the class as everyone, students, people etc.Do your best to also refer to students by their names whenever speaking to them orasking them a question.

Common Essential Learnings:Critical and Creative Thinking (CCT) In creating six scenarios of their own, studentsare forced to think critically and apply the knowledge that they have gained in todayslesson.

Adaptations: An adaptation that will be made for a student who has broken their writing hand

over the weekend and is unable to write. This student will be paired up withanother student in the class for the exit slip assignment. Their group is to comeup with 8 scenarios since they have to people working on it. Anymore than 8would be unreasonable given the amount of time allotted to this activity. Theteacher would also make sure to designate a person in the class who writeslegibly and quickly to make a second copy of any notes taken in todays class forthe student with the broken hand.


42/51

GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP)DEFINITONS

Business Entity PrincipleCost PrincipleObjectivity PrincipleGoing Concern PrincipleMonetary Unit PrincipleRevenue Recognition PrincipleTime Period PrincipleConsistency PrincipleConservatism PrincipleMatching PrincipleMateriality PrincipleFull Disclosure Principle

Business Entity PrincipleEach economic entity or business of the owner must keep accounting records and reports thatare separate from those of the owner and any other economic entity of the owner. Users wantinformation about the performance of a specific entity. If information is mixed between two ormore entities, its usefulness decreases.

Example: In a sole proprietorship, the owner must not include personal expenses, suchas clothing and the cost of going to the movies, as expenses of their business.

Cost PrincipleAll transactions are recorded based on the actual cash amount received or paid. In the absenceof cash, the cash equivalent amount of the exchange is recorded.

Example: If a business purchased used furniture for $5,000 cash, it is recorded in theaccounting records at $5,000. It makes no difference if the business thinks that the value of thefurniture is $7,000.

Objectivity PrincipleFinancial statement information must be supported by independent, unbiased, and verifiableevidence. The cost principle is also consistent with objectivity because most users consider costto be objective.

Example: If a business purchases new furniture and records the transaction based on aninvoice prepared by the seller, the invoice is independent and unbiased evidence that verifiesthe details of the transaction.

Going Concern PrincipleFinancial statement users assume that the statements reflect a business that is going tocontinue its operations instead of being closed or sold. Therefore, assets are maintained in theaccounting records at cost and not reduced to a liquidation value as if the business were beingbough or sold.


43/51

Example: It is assumed from a review of a businesss financial statements that thebusiness is continuing its operations, because information to the contrary is not included.

Monetary Unit PrincipleTransactions are expressed using units of money as the common denominator. It is assumedthat the monetary unit is stable; therefore, a transaction is left as originally recorded and is not

later adjusted for change in currency value of inflation.Example: A Canadian business purchased furniture from a supplier in the United States

in 2005 for a total cost of $1,000 (U.S.), or $1,489 (Cdn). If the exchange rate later changes thebusiness does not restate the value of the furniture. The furniture remains in the accountingrecords at $1,489 (Cdn). This is also consistent with the cost principle.

Revenue Recognition PrincipleRevenue is recorded at the time that it is earned regardless of whether cash or another assethas been exchanged. The amount of revenue to be recorded is measured by the cash plus thecash equivalent value (market value) of any other assets received.

Example: Assume that on April 3rd a business performed work for a client in the amountof $600. The client did not pay the $600 until May 15. Revenue is recorded when actually

earned on April 3rd in the amount of $600, the value of the noncash asset received by thebusiness.


44/51

Generally Accepted Accounting Principles Assignment

After each of the following questions students are to state which Generally Accepted AccountingPrinciple applies to that question (One principle per question).

1. Karl James purchases equipment for SouthCo and records the transaction based on aninvoice prepared by the store of purchase.

2. Revenues are recorded when they are earned, regardless of when cash is received.

3. Big Time Tech is a sole proprietorship owned by Sally Smith, who purchased a computerfor personal use and recorded it as an asset on the balance sheet of Big Time Tech.

Which principle has Sally Smith violated?

4. The theory that each business records and reports its financial activities in terms of thenational monetary unit of its country, such as dollars, yens, or francs, is the definition forwhich principle?

5. Land and building with the respective appraised values of $60,000 and $180,000 werepurchased for $55,000 and $160,000. Both assets will be recorded at the respectivecosts of $55,000 and $160,000.

6. Carter Stark owns two sole proprietorships, Universal Maintenance Co. and IncompleteData Co.. In preparing financial statements for Universal Maintenance Co., Carter Starkshould be sure that the revenue and expense transactions for Incomplete Data Co. areexcluded.

7. Financial statement information must be supported by independent, unbiased, andverifiable evidence.

8. A business is assumed to continue to operate into the foreseeable future.

9. In October 2002, Classic Memorabilia Co. received a customers order that would not berequired until May 2002. The revenue should be recorded in May 2002.


45/51

10. Each economic entity or business of the owner must keep accounting records andreports that are separate from those of the owner and any other economic entity of theowner.


46/51


47/51

STUDENT ASSESSMENT OF THE UNIT

1. In your own words, describe what you learned during this unit.

2. Was the material covered in the unit interesting, relevant and challenging?

3. How likely are you to use the information you learned in this unit in the future?

Not at all __ Somewhat __ Most likely __ A lot __Explain:

4. Rate this unit on its relevance to your life or where you could use it on a scale of 1-10. (1is low, 10 is high). Explain.

5. Is there something else that we didnt cover or something that you are more interested innow that we have completed this unit? Explain.


48/51

Unit Test Introduction to Accounting

Student Name: ____________________________________ Mark________%

Vocabulary Matching Match the definitions with the terms. 1 mark each.

1. Equity_____ A. Any book containing original entries of daily financial

transactions

2. Accountant_____ B. Tangible property held for sale, or materials used in a production

process to make a product

3. Revenues_____ C. Presentation of financial data including BALANCE SHEETS,

INCOME STATEMENTS and STATEMENTS OF CASH FLOW

4. Credit_____ D. Act that departs from what should be done; imprudent deviation,

unintentional mistake or omission.5. Liability_____ E. Residual INTEREST in the ASSETS of an entity that remains after

deducting its LIABILITIES6. Account_____ F. Entry on the left side of a DOUBLE-ENTRY BOOKKEEPING

system that represents the addition of an ASSET or expense or the

reduction to a LIABILITY or REVENUE

7. Financial Statements_____ G. Entry on the right side of a DOUBLE-ENTRY BOOKKEEPING

system that represents the reduction of an ASSET or expense or the

addition to a LIABILITY or REVENUE

8. Inventory_____ H. Sum of DEBIT entries minus the SUM of CREDIT entries in an

ACCOUNT

9. Journal_____ I. Person skilled in the recording and reporting of financial

transactions.

10. Debit_____ J. Formal record that represents, in words, money or other unit of

measurement, certain resources, claims to such resources, transactionsor other events that result in changes to those resources and claims.

11. Partnership_____ K. A fundamental concept of basic accounting.

12. Balance_____ L. the excess of ASSETS over LIABILITIES

13. Net Worth_____ M. Relationship between two or more persons based on a written, oral,

or implied agreement whereby they agree to carry on a trade or

business for profit and share the resulting profits

14. Error_____ N. DEBTS or obligations owed by one entity (DEBTOR) to another

entity (CREDITOR) payable in money, goods, or services.

15. Matching Principle_____ O. Sales of products, merchandise, and services; and earnings from

INTEREST, DIVIDEND, rents.


49/51

True and False To indicate your answer place a T (True) or F (False) in the space provided.

1 mark each..

16. _____ A sole proprietorship form of business ownership legally incorporated business

owned and controlled by its members

17. _____ Primary purpose of Generally Accepted Accounting Principles (GAAP) is to

make information in financial statements relevant, reliable, consistent, and

comparable.

18. _____ Bookkeepers generally supervise the duties of the accountant.

19. _____ Managerial accounting follows the GAAP.

20. _____ Financial accounting is aimed at serving external users.

21. _____ Crown corporations are wholly owned federal or provincial organization,

structured like private or independent enterprises.

22. _____ Merchandising businesses create their own goods and services.

23. _____ Accounting is used in everyday life to help people make better financial

decisions.

24. _____ An asset is a debt or obligations owed by one entity to another entity payable

in money, goods, or services

25. _____ The Matching Principle requires that you match the revenue you are reporting

with the expenses it took to generate that revenue in the same time period.

Short Answer Answer each question in the space provided below. You may use point form

or paragraph form.

26. Identify and briefly explain the basic differences of the three main types of accounting.

List at least two differences. (5 marks).


50/51

27. Choose one type of business ownership and list 2 advantages and 2 disadvantages of each.(5 marks).

28. List and explain the three main types of businesses that a person can engage in.

(5 marks).

______/40


51/51

Answer Sheet

Matching

1. E 9. A2. I 10. F

3. O 11. M

4. G 12. H

5. N 13. L6. J 14. D

7. C 15. K

8. B

True and False

16. F17. T

18. F

19. F20. T

21. T

22. F23. T

24. F

25. T

Short Answer

26. Various answers are acceptable

- Financial Accounting, Cost Accounting, Management Accounting

- Financial accounting follows GAAP, other two do not- Cost and management accounting are both internal, financial is for external use

- Financial focuses mainly on financial statements

- Cost focuses mainly on costs- Management focuses mainly on decision making

27. Answers will vary based on the type of ownership they choose.

28. Manufacturing a company that makes a product from scratch

Merchandising a company that buys and sells inventory

EBUS 285 Unit Plan

Documents

Transcript of EBUS 285 Unit Plan