Welcome to Week 2!Financial Accounting

Ashton Converse

Question: What is the Lotus Festival About?

Objectives/Schedule

Welcome: Hope your weekend was well and productive

Review Past Expectations via a Game

Diving into Accounting: We will define as a group

Vocab Cover: Important words we need to know (CHPT. 1)

Decipher between Financial Accounting and Managerial

Organizing a Business: The Main Types and Examples

Principles and Concepts: Basic Overview and Definitions

THE ACCOUNTING EQUATION: HERE WE GO! Buckle UP!

ReviewThe person who raises their hand first, after the question is read, will answer first. (10 minutes)

• Name 3 things that you need to always bring to class?

• What are the 2 main purposes of this class?

• What state was I born in and lived for most of my life?

• Name 4 of my interests and activities?

• What is my email?

• Name 2 expectations I have for you?

• Name one expectation of this course (to help you)?

• Do I tolerate (allow) cheating?

• How much percent is Attendance worth for your final grade?

Diving into Accounting

By Yourself (individually) write down many things that you know about Accounting and Finance. (Take about 3-4 min.)

Now with 3 other people around you discuss what you wrote down. Share your ideas and help each other. (5-8 minutes)

Next have one person go to the chalkboard and write down 8 of your groups’ most important ideas concerning the field of Accounting. (10 min.)

OK, LETS DISCUSS!!! (5-8 min)

Converse about Vocabulary

Financial Accounting

Financial Statements

Management Accounting

Shareholders

Partnership

Stock

PPE

Proprietorship

Revenue

Accounting

Liabilities

Assets

Balance Sheet

Income Statement

Statement of Cash Flows

Owners’ Equity

Decipher Differences

Financial Accounting vs. Managerial Accounting

In groups of 2 discover and discuss what the main differences may be between Managerial Accounting and Financial Accounting. (5 min)

The main difference is that Financial Accounting is for providing information to those outside of the company where as Managerial provides data and information for the company.

Forms of a Business

There are 3 main forms of a business.

1. Proprietorship1. A business (other) with a single owner.

2. Partnership1. A business (other) of two or more

persons who co-own a business for profit.

3. Corporation1. A business (other) owned by

stockholders. 2. A corporation is a legal entity, an

“artificial person” in the eyes of the law.

Think of “THAT” Business

This semester you will be learning about numerous different accounting concepts and vocabulary. To help you do that, you will write up a quick short and simple business plan.

Take time now to start thinking of a business/company/organization you would like to work for or own. (8 min.)

Throughout the semester we will be referring to your business plan and the statements/reports that you will create along the way. These business ideas will reinforce the material and provide semi-authentic learning.

ObjectivesWelcome

Be Happy, its time for Review!

Talk about Egypt Protesters Impact on Finances and Business

Working on Your Desired Job or Company to Work for/Own

Think of that company you “desire” to work for

Company Name, Mission, Vision, What Does it Do?

Deeper Look at Concepts/Terms (discussion and lecture)

A Look Into the Accounting Equation

Small Reading

ReviewWhat are some things we talked about yesterday?

When Turmoil Occurs

Egypt Protestors 2 days ago.

What happens when a country is disruptive?

What is the influence on the country’s economy?

DISRUPTIONS IN COUNTRIES ARE PROBLEMATIC

It is not good for tourism, business, economy, foreign affairs, the country itself, global work, and much more.

Business PlanTime for you to define your desired company you want to own or work for.

You will need to define the following areas of your company.

Company NameMission: What it wants to achieveVision: How will it keep investors/stakeholdersWhat it will do? (sell services/goods)

DEEPER LOOKHERE WE GO!

LETS JUMP TO THE OTHER NOTES…

Good ethics! Key to accounting, successful job, and a good business

GAAP: professional guidelines for accountants (generally accepted accounting principles)

Entity: stands as a separate economic unitEx: David the owner of Yum brands…both separate entities, David is not liable for the company, because it is its own entity, it is held liable for itself.

Deeper Look Continued

Reliability PrincipleKeeping records. A receipt shows the actual price.

Cost PrincipleAssets and services should be recorded at their actual historical price

If a building is bought for 50,000 Kuai, then that is its historical price

Going-concern concept:Assumes that the entity will remain in operation long enough to use existing assets. Building, supplies, items, products, etc.

Deeper Look Continued

Stable-monetary-unit concept: Accountants assume that the dollar purchasing power is stable…that the Yuan is stable, safe and will not go up or down

Inflation:A rise in the general price level Accountants ignore inflation in most cases so each dollar is the same, equal purchasing power

Accounting Equation

What is the accounting equation?

What does it mean?

Assets = Liabilities + Owners Equity

Work for Outside of the Class

Each person will find an annual report from a company (any company around the world). Bring it in to class to share with everyone.

In addition, write 2 paragraphs about the reading including the following:

Brief SummaryWhat seems to be the current status of the companies finances?Your Thoughts About the Companies Future Success/Loss