Introduction Introduction toto

Accounting Accounting 120120

Mr. Binet / Moncton High School

Class #1: Intro to Accounting, Five Activities of an Accounting, Accounting as

a Profession and Business Sectors

1. Describe accounting and its goals and uses2. Describe forms of business organizations3. Identify users and uses of accounting4. Explain why ethics and social responsibility

are crucial to accounting5. Describe how technology is changing

accounting6. Identify opportunities in accounting and

related fields7. Describe codes of ethics and professional

conduct for accountants

Learning Learning ObjectivesObjectives

Accounting is an information system that identifies, measures, records and communicates relevant, reliable, consistent information about an organization’s economic activities.

Its objective is to help people make better decisions. It also helps people better assess opportunities, products, investments, and social and community responsibilities.

In addition, to reporting on the performance of a business, what the business owns, and what it owes, accounting opens our eyes to new and exciting possibilities.

Accounting can provide you with important and interesting learning experiences. You will acquire knowledge and skills that will help you in both business and everyday life. For example, you can use accounting knowledge to make better investment decisions or to help you get a loan for a house.

Power of Power of AccountingAccounting

Accounting affects many parts of life. Some examples of common contacts with accounting are through credit approvals, chequing accounts, tax forms and payroll

These experiences are limited and tend to focus on the recordkeeping (or bookkeeping) parts of accounting.

Recordkeeping, or bookkeeping, is the recording of financial transactions and events, either manually or electronically, for the purpose of creating reliable bank of data. Accounting involves the recordkeeping process but is much more.

Focus of Focus of AccountingAccounting

There are five main activities involved in accounting, they are:

1. Gathering financial information about the activities of a business or other organization.

2. Preparing and collecting permanent records. Records provide evidence of purchase, proof of payment, details of payroll, and so on. They also serve as the basis for dealings with other companies.

3. Rearranging, summarizing and classifying financial information into a more useable form.

What is Accounting What is Accounting About?About?

4. Preparing information reports and summaries for the following purposes:a. to help management reach decisions.b. to serve the needs of groups outside the business, such as bankers and investors.c. to measure the probability of the business.

5. Establishing controls to promote accuracy and honest among employees. As business grow, owners can no longer look after everything alone. They have to hire others to help them. As soon as employees are hired, accounting controls become essential.

What is Accounting What is Accounting About?About?

Requires several years of serious study and practice.

Requires one of the professional courses in Accounting:

Chartered Accountant (CA) Certified General Accountant

(CGA) Certified Management Accountant

(CMA).

Accounting as a Accounting as a ProfessionProfession

A public accountant serves the general public for a free in the same way as a doctor or lawyer does. The main form of work is auditing.

Auditing is the examination and testing of the books, records and procedures of a business in order to be able to express an opinion about its financial statements.

Accounting as a Accounting as a ProfessionProfession

1. The Service Business: Sells a service to the public; it does not make or sell a product as its main activity.

2. The Merchandising Business: buys goods and resells them at a higher price for profit.

3. The Manufacturing Business: Buys raw materials, converts them into a new product, and sells these products to earn a profit.

4. The Non-Profit Organization: May carry on activities to meet social needs and not for a financial profit.

Types of Types of BusinessesBusinesses

1. In groups of two, Create a PowerPoint or MS Word file:

Title slide/page with both names on it and pertinent class info.

Give real-world examples of the 4 Types of Businesses (1 per slide + photo/logo/clipart).

Find out information on the 3 different types of Accounting Certification (CA, CMA, CGA) and display their logo, website addresses and a short summary of what they do and how one may get this accreditation.

Today’s Today’s AssignmentAssignment