2007

Introduction
to
Accounting
Accounting 10
Module 1A

Tara Manson, Jordan McFarlen, David Campbell

EBUS 285 Unit Plan
11/13/2007
 UNIT PLAN

MODULE 1A: Introduction to Accounting

Accounting 10
Time Allotment – 6 Hours

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

Rationale Statement: Students will recognize that to fully understand accounting and
all 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 an
appreciation for the course they are in. Students will discover the different areas of
accounting, 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 the
Generally Accepted Accounting Principles so that they are aware of why various
procedures must be followed.

Prerequisite Student Learning: Students require no prerequisite learning to be

successful in this unit.

Objective: SWBAT understand the basic accounting vocabulary and develop an

awareness 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 through
direction instruction.
2. Individual Instruction: This will be used when the students are completing
worksheets or copying notes.
3. Interactive Instruction: This will be used when students are working in groups to
create their presentations and when they are working in partnerships.
4. Task Teaching: Students will be given an outline that states what they are
expected to complete. They will follow the outline when completing their
assignment and ensure that all tasks are met.

Student Activities:
1. Students will play bingo using the new accounting vocabulary words they have
learned
2. 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.
 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 individual
lesson plans
o Accounting 10, 20, 30 Curriculum Guide
http://www.sasked.gov.sk.ca/docs/account/accounting2003/index.html
o 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 words
that have been learnt throughout the unit and achieve a mark of at least
70%
b. Students will identify why they believe the study of accounting is important
2. Of unit effectiveness
a. Hand out a Student Assessment sheet to the students that will ask them
what they thought about the unit. (Attached to unit plan)
b. Use the Unit Feedback sheet to assess the overall effectiveness of the
unit. (Also attached unit plan)
 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 describing
each wouldn’t 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 students

understanding why we do accounting and why it is important.

Objective 1.4

1.4 Objectives - To identify and explain the basic differences between

financial 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 go
into.

Objective 1.5

1.5 Objectives - To distinguish and explain the advantages and

disadvantages of each form of business ownership.

This objective was incorporated into the unit because it shows the importance
of 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 businesses
that exist and understanding how they work.
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 didn’t
offer a lot of new information.

Objective 1.8

1.8 Objectives - To develop and explain the concept and acceptance of

Generally Accepted Accounting Principles (GAAPs).

This objective was included because the GAAPs are a vital component to
understanding accounting.
 Process Log

We chose Module 1 because we wanted to cover the introduction to accounting

and thought it would be interesting to teach the initial concepts of this area. We decided

to focus on Module 1A because we thought it encompassed a lot of new learning and

would be sufficient in one unit because any more may be too overwhelming for students

at one time.

We first chose which objectives we wanted to include based on the relevance to

our unit topic of “The Introduction to Accounting”. We combined the objectives that we

thought fit well together, and ones that we did not think we could make into an hour long

lesson. Then we divided up the objectives by each choosing which ones we wanted to

cover. We each ended up with objectives for two, fifty minute long lessons.

We gave ourselves a few days to think about what we wanted to do with our

lessons, and then we met at the university once again. We discussed what our

objectives of the lesson plan would be, how we would achieve them, and how we would

evaluate them. We all provided our thoughts and opinions of the ideas put forth and

made adjustments accordingly. We then set a “due date” for our lesson plans to be

completed so that we could make further adjustments and ensure that they followed the

same template. Once the lesson plans were completed we met for an entire afternoon.

We each presented our lesson plans and received input from the rest of the group. We

put specific work into ensuring that our objectives were correctly done because we saw

that area as being crucial to the success of a unit plan. After we decided that all our

lesson plans were sound, we made final touches to the formatting so that they all

followed the same templates.

 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.

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 the
unit? 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?

LESSON PLAN Subject: Accounting 10

Materials/Aids Required: Accounting Vocabulary Bingo Game, chips/Beans for the

game, vocabulary flashcards, overhead of differences between accounting and
bookkeeping, overhead projector.

Unit Introduction to Accounting

Topic Objective 1.1 – 1.2 – Basic Accounting Terms
The basic vocabulary of accounting, distinguish between bookkeeping and
Content accounting

Objectives:
SWBAT individually distinguish between specific traits or activities of both
accounting and bookkeeping, after being instructed on the differences and
1 similarities of both, and score a mark of at least seventy percent.
SWBAT accurately identify at least 3 of the basic accounting definitions during
2 each game of Accounting Vocabulary Bingo.

3
Pre 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 accounting
is becoming familiar with the language.
• When you move to a foreign country, what is the first thing you need to do before
you can communicate with the locals? You need to learn the language so that
you are on the same page as them. It is the same with accounting; you need to
understand the vocabulary so that you can begin to understand the accounting
concepts that coincide with them.
5 min.
Development:
• I will provide the students with a set of 50 basic accounting vocabulary words on
flashcards. I will tell the students that we will be playing a game with these
vocabulary 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 basic
definitions.
• After ten minutes, I will call the class back together as a group. I will explain that
another primary idea of accounting is being able to recognize the differences
between accounting and bookkeeping.
• I will put an overhead on the board for students to copy out which outlines the
 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 and
bookkeepers. They will be asked to determine which activities would be
completed by an accountant, and which activities would be completed by
bookkeepers.
• After seven minutes, I will ask the students to exchange their work with another
student. I will correct the worksheet with the students by having them read the
question and provide the answer, and I will tell them if their answer is correct or
not.
• 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 corresponding
term. 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 with
remembering the terms.
• I will ask one student to hand out the bingo cards and one student to hand out
the chips/beans.
• When a student has five chips/beans aligned in a row, they are eligible to call
“Bingo”.
• When one student calls “Bingo”, the rest of the students must stop the activity. I
will tell the students which definitions have been called so that the students may
correct their own bingo cards. After each game, I will ask students how many
definitions they had correct for that round.
42 min.
Closure:
• I will thank the students for working effectively today, and ask the students that
handed 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 to
refresh 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 an
occasion.
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 of
another 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 have
called and students will be asked to mark the work of the student beside
them. I will ask for the marks of each student.
Obj. #3
Target for Professional Growth:
• Clear/concise instructions
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 vocabulary
Adaptations:
• Students that are struggling with the new terms may use a master copy of all of
the definitions with their terms for the bingo game
• Advanced students will be paired with less able students during the use of the
flashcards
• If a student is deaf and cannot hear the definitions being called out, the instructor
will also place an overhead of the instruction on an overhead projector for that
student to read
 Accounting Vocabulary

1. Account - Formal record that represents, in words, money or other unit of

measurement, certain resources, claims to such resources, transactions or other events
that result in changes to those resources and claims.
2. Account Payable - Amount owed to a CREDITOR for delivered goods or completed
services.
3. Account Receivable - Claim against a DEBTOR for an uncollected amount, generally
from 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 the
FINANCIAL STATEMENTS
6. Adjusting Journal Entry - An accounting entry made into a subsidiary ledger called
the General journal to account for a periods changes, omissions or other financial data
required to be reported "in the books" but not usually posted to the journals used for
typical 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 and
presentation of a specified date the entity's ASSETS, LIABILITIES and the EQUITY of its
owners. Also known as a STATEMENT OF FINANCIAL CONDITION. .
9. Cash Flows - Net of cash receipts and cash disbursements relating to a particular
activity during a specified accounting period.
10. Credit - 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. (See DEBIT.)
11. Credit Balance - BALANCE remaining after one of a series of bookkeeping
entries. 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 more
than one cycle is completed each year.
13. Current Liability - Obligation whose LIQUIDATION is expected to require the
use of existing resources classified as CURRENT ASSETS, or the creation of other
current liabilities.
14. Debit - 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. (See CREDIT.)
15. Debit Balance - BALANCE remaining after one or a series of bookkeeping
entries. 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 after
deducting 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 and
liabilities.
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 BALANCE
SHEETS, INCOME STATEMENTS and STATEMENTS OF CASH FLOW, or any
 supporting statement that is intended to communicate an entity's financial position at a
point 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 its
ACCOUNTING period which may or may not be a calendar year. Fixed Asset - Any
tangible 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. The
highest level of such principles are set by the FINANCIAL ACCOUNTING STANDARDS
BOARD (FASB).
23. Going Concern - Assumption that a business can remain in operation long
enough for all of its current plans to be carried out.
24. Gross Income - The beginning point for the determination of income, including
income from whatever sources derived.
25. Income Statement - Summary of the effect of REVENUES and expenses over a
period 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 in
limited liability. Rules governing LLPs vary significantly from state to state.
31. Limited Partnership - PARTNERSHIP in which one or more partners, but not
all, 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 NET
INCOME.)
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 current
replacement cost. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) requires
that 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 one
given accounting period, you should try to match the revenue you are reporting with the
expenses it took to generate that revenue in the same time period, or over the periods in
which you will be receiving benefits from that expenditure. A simple example is
depreciation expense. If you buy a building that will last for many years, you don't write
off the cost of that building all at once. Instead, you take depreciation deductions over
the 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 LIABILITIES
38. 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 profit
and share the resulting profits. Unlike a CORPORATION'S shareholders, the
 partnership's general partners are liable for the DEBTS of the partnership. (See
GENERAL PARTNERSHIP, LIMITED LIABILITY PARTNERSHIP, LIMITED
PARTNERSHIP.)
39. Prepaid Expense - Cost incurred to acquire economically useful goods or
services that are expected to be consumed in the revenue-earning process within the
operating cycle.
40. Ratio Analysis - Comparison of actual or projected data for a particular
company to other data for that company or industry in order to analyze trends or
relationships
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. (See
INTANGIBLE ASSETS.)
45. Unearned Income - Payments received for services which have not yet been
performed.
46. Working Capital - Excess of CURRENT ASSETS over CURRENT LIABILITIES
47. 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, in
contrast to obligations due others. Assets are things of value held (usually owned) by
the business. Assets are balance sheet accounts. Examples are cash, accounts
receivable, inventory, and fixed assets.
49. Bookkeeping - The practice involved in the systematic recording of transactions
affecting a company beginning with the data-entry process and ending with the
preparation of financial statements. The art, practice, or labor involved in the
systematic recording of the transactions affecting a business.
50. Capital - Also known as Owner's Equity and Net Assets, it is the result of
subtracting Liabilities from Assets. Businessmen will use the term "Capital" to describe
the amount of money or other resources owned or used to acquire future income or
benefits. The amount subscribed and paid by stockholders.
 ACCOUNTING:

Accounting is a four stage process of recording, 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.

What is Bookkeeping?

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

All bookkeeping steps are mechanical in nature. Bookkeeping is a regimented process

usually occurring in monthly cycles consisting of entering transactions into the journals, making
adjustments, and preparing reports. The Accounts Receivable Clerk may be assigned to enter all
sales on account, and all payments from the customers. The Accounts Payable Clerk's
responsibility would be to enter purchase orders and checks. Again, in a small company, both
duties 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 is Accounting?

Someone has to set up the bookkeeping system, monitor it, and interpret the results. These
processes are called "Accounting." The accounting process is much less mechanical and
more subjective. It begins with designing a system that will benefit the business, by capturing
the financial information in a useful manner without being overly burdensome to the
bookkeeper. 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 financial
statements to the business management in such a way that decisions can be made.

Since accounting requires an understanding of the bookkeeping process, accountants

typically supervise the bookkeepers. In a large corporation there may be several, possibly even
thousands of accountants. One will be designated as the "Controller" who oversees the entire
accounting and bookkeeping system.

In a small business, one person, often a freelancer (a contract accountant) will perform all the
phases of accounting and bookkeeping for a company. Since "Accountant" is the more
prestigious 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". In
these states, the "Accountant" title is reserved for CPA's only. This does not necessarily coincide
with 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.
Universal's course trains in bookkeeping and accounting. The first module emphasizes the
bookkeeping 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 and
interpretation of the accounting process.

Therefore, most of our graduates, in states that permit use of such a title, refer to themselves
as "Accountants".
 Differences Between Accounting & Bookkeeping

In each question, please write “A” for accounting or accountant’s role or “B”
for bookkeeping or bookkeepers role in the space provided.

1. These people are often referred to

as “clerks”
2. In smaller companies, these people
may just perform data entry.
3. This process is much less
mechanical and more subjective.
4. Monitors the system to ensure its
doing what it's supposed to do.
5. It is merely a mechanical aspect of
recording, classifying and
summarizing transaction.
6. It begins with designing a system
that will benefit the business, by
capturing the financial information
in a useful manner without being
overly burdensome to the
bookkeeper.
7. In large companies, for instance,
this cycle might be divided into
departments such as Accounts
Receivable, Accounts Payable, or
Payroll.
8. Is a four stage process of recording,
classifying, summarizing and the
interpretation of the financial
statements.
9. These people usually supervise
other’s duties and ensure that all is
being performed correctly.
10. This person presents the financial
statements to the business
management in such a way that
decisions can be made.
 Differences Between Accounting & Bookkeeping

In each question, please write “A” for accounting or accountant’s role or “B”
for bookkeeping or bookkeepers role in the space provided.

1. These people are often referred to

as “clerks” B
2. In smaller companies, these people
may just perform data entry. B
3. This process is much less
mechanical and more subjective. A
4. Monitors the system to ensure its
doing what it's supposed to do. A
5. It is merely a mechanical aspect of
recording, classifying and
summarizing transaction. B
6. It begins with designing a system
that will benefit the business, by
capturing the financial information
in a useful manner without being
overly burdensome to the
bookkeeper. A
7. In large companies, for instance,
this cycle might be divided into
departments such as Accounts
Receivable, Accounts Payable, or
Payroll. B
8. Is a four stage process of recording,
classifying, summarizing and the
interpretation of the financial
statements. A
9. These people usually supervise
other’s duties and ensure that all is
being performed correctly. A
10. This person presents the financial
statements to the business
management in such a way that
decisions can be made. A
 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/ .
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:
SWBAT identify ways that accounting is used in everyday life by creating a
1 budget that details things they purchase regularly and will have a mark assigned
by how realistic they are.

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 on
their 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 don’t have one), Car (imagine if you don’t have one) and
all expenses related, Cable/Phone/Internet, and Entertainment.

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

Budgets should range between $1200 – $1600/mo (potentially could be less,

but with sacrificing area of town, or other items).
Then we will look at a savings budget. How much should you be setting aside
per month? Is there anything you are saving for? How long until you
achieve 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 be

able 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 General
Journal, 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 being
very realistic.
Obj. #2
Obj. #3

Target for Professional Growth: Maintain eye contact with students

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

PSVS – Giving students the knowledge to become smarter consumers and budget their money
better, 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 class’s
suggestions on the board. This will keep him occupied as well as engaged in the lesson.
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, Teacher
Notes, In Class Assignment

Unit Introduction to Accounting

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

Content Introducing financial accounting, cost accounting, and management

accounting and recognizing the differences between the three.

Objectives:
Given instruction on the three main types of accounting SWBAT correctly define
1 them.

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

Pre Requisite Learning: None

Presentation:
Set:
• Begin the class with a guided class discussion recapping what was learned in the
previous class (Why the study of accounting is important). Ask students why
keep records? What is the purpose of financial records? Why is accounting
important? Prompt students to give answers to these questions and discuss each
answer as a class. If students are not giving out answers then begin to hint at
answers. Remind students that accounting information can help people to make
better business decisions. (See the lesson plan from the previous class [1.3] for
the answers to these questions).

5 min.

Development:
Part 1
• After a quick recap of last class, announce to students that today they will be
learning about the three main types of accounting. The three main types of
accounting are FINANCIAL ACCOUNTING, COST ACCOUNTING, and
MANAGEMENT ACCOUNTING. Write the three types of accounting on the
whiteboard. Explain to students that accounting is used by many different people
 for various reasons. Let students know that these three types all have different
uses as well as different users.
• (5–10 min.) Then ask all students to sign on to their computers and use the
internet to research each of the three types of accounting mentioned. Explain to
students that they are to record the information they get on each type of
accounting 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 if
possible, examples for each of the three types. Encourage students to only use
sites 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 three
types of accounting.
• Once the students have finished researching the definitions/characteristics of
each type, they will be discussed as a class. Using the overhead, separate the
sheet into three columns. In the first column write the heading Financial
Accounting. Ask the students what definition/characteristics of Financial
Accounting they found while researching. If students are reluctant to answer than
hint at part of the definition. As students suggest answers discuss them as a
class, 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 Financial
Accounting section on the over head sheet. Make sure that students are writing
down this information in their notebooks. The answers do not have to be the
exact same as the teachers but they should be fairly similar. After Financial
Accounting, make the next column Cost Accounting and the third column
Management Accounting. Go through all three as a class, making sure to write
down the definition/characteristics of each one in the designated column. After
going through all three types write down the example of all three types on the
whiteboard 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 organization’s activities. External users rely on GAAP to
make sure statements are reliable. Some external users are shareholders,
lenders, directors, customers, suppliers, regulators, lawyers, brokers, and
the press.

• Cost Accounting –The process of accumulating the information that managers

need about the various costs within the organization.Concerned with the
reporting of costs (assets and expenses) as accurately as possible.
-does not follow GAAP

• Management Accounting – is the area of accounting aimed at serving the

decision-making needs of INTERNAL users. Managerial accounting provides
special-purpose reports customized to meet the information needs of internal
users.
-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 it
sell the truck (management accounting)? What amount has been reported on the
financial statements for the truck in the last five years (financial accounting)?
 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 Class
Assignment is to be completed individually. It is a very basic assignment that is
used to reinforce the information touched on in today’s class. The assignment
should only take about 7-8 minutes.
• Once this time has passed then have all students exchange papers with the
person next to them or behind them (depending on the setup of the computer
lab). All students should now have the paper of someone else in the class. The In
Class Assignment will now be marked as a class. Lead the marking by going
through each question aloud and then asking for the correct answer, explain
each answer given, if it is not correct ask students if they can explain why. Go
through 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 back
next day.
• Answers to In Class Assignment

1. Financial accounting, Cost accounting, Management accounting

2. Financial accounting
3. Cost accounting, Management accounting
4. Generally Accepted Accounting Principles
5. Cost accounting
6. Management accounting
7. Financial accounting
8. Various answers are acceptable.
-Financial accounting follows GAAP, the other two do not
-Cost and Management accounting are both internal, Financial is external
-Financial–financial statements, Cost–costs, Management–decision making
*Look off of the definition/characteristics sheet done in class when marking this
question.

15 min.
Closure:
• Once students are all back in their seats engage students in a guided class
discussion to wrap things up. Review the material that was covered in today’s
class. Ask students what Financial accounting is? Ask students what Cost
accounting is? Ask students what Management accounting is? (See definitions).
Also ask students if anyone can think of an example situation that includes all of
the three types of accounting mentioned (this may be tough as students don’t
very much accounting knowledge yet). Then let students know that next day they
will be learning about the different forms of business ownership.

5 min.
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 three
main 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 main
types of accounting.

Obj. #3

Target for Professional Growth:

Voice
Make 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 the
class.

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 valid
and also to use the skills needed to find this information.
• Independent Learning (IL) – Students are to research the three definitions on the
internet 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 down
information for the deaf student when there are group discussions etc. or the
teacher explains some important information. The teacher will make sure that
prior to class they have created handouts for the hard of hearing student that
explains any of the directions etc. that the teacher might have planned to state
orally for that day. Also when marking the assignment in today’s class the
teacher will have an extra copy of the answers for questions 1-7 for the hard of
hearing student so that they will know the answers when marking the
assignment.
 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.
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.).
LESSON PLAN Subject: Accounting 10

Materials/Aids Required: Individual access to computers and internet, overhead of

different forms of business ownerships, outline for presentation, overhead projector

Unit Introduction to Accounting

Topic Objective 1.5 – Different Forms of Business Ownership
Distinguish and explain the advantages and disadvantages of each form of
Content business ownership

Objectives:
SWBAT individually distinguish characteristics of the various forms of business
ownership with 70% accuracy, after discussing an overhead outlining these
1 characteristics.
SWBAT use the internet, textbook, or any variety of resources to create a five
minute 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 provided
2 outline.

Pre Requisite Learning: None

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 recognize
as differences between them.
• Examples will include: Miss Manson’s Manicures – Sole Proprietorship,
McDonald’s – franchise, Petro-Canada – crown corporation, Bob and Joan’s
Pancakes - 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 business
ownerships 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 the
students 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 to
show the class, which encompasses all of the outlines on the outline that is
provided.
• Next lesson they will present their findings and be evaluated by both their peers
 and the instructor.
44 min.
Closure:
• I will remind the students that their presentations are due next class. If they
require 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 another’s 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 by
the instructor.
Obj. #3 Students will be marked on the inclusion of all components of the
presentation by the instructor and will be given this outline before they
create their presentation.

Target for Professional Growth:

• Classroom management, ensure that students are on task in their working
groups

Common Essential Learnings:

• Communication (COM) – students will engage in a class discussion and verbally
interact with one another during the planning for the group presentation
• Personal and Social Values and Skills (PSVS) – students will be working in small
groups to collectively create a presentation
• Critical and Creative Thinking (CCT) – students will be encouraged to find an
interesting and original way to present to the class
• Technological Literacy (TL) – students will use the internet to research for their
presentations
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 to
present their findings to the class. He or she will simply hand in a short paper
that answers all of the questions.
 Business Ownerships Presentation

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

Name of your business ownership 1 mark

Definition and description of ownership 4 marks
Advantages of ownership 4 marks
Disadvantages of ownership 4 marks
Guideline of laws that come with ownership 3 marks
Examples of ownership 2 marks
Owner/shareholder status 2 marks
TOTAL 20 marks

Description 1 2 3 4
Name of business ownership was
N\A N/A N/A
included.
Definition and description of
ownership was accurately given in
great detail.
At least four advantages of
ownership were included with
reasoning.
At least four disadvantages of
ownership were included with
reasoning.
A guideline of laws that come with
ownership was included with
N/A
details on responsibility of any
liability on debt, et c.
At least two different examples of
N/A N/A
ownerships were included.
Owner/shareholder status was
N/A N/A
identified.
In the spaces provided, put an “X” in the column that you feel best describes the action
of the group as a whole.
1. At all times
2. Most of the time
3. Some of the time
4. Little to none of the time

Description 1 2 3 4

Students appeared prepared and organized.

Students maintained great eye contact

throughout the presentation.

Students encouraged questions and

discussion.

Students were knowledgeable in their area.

Student’s presentation was engaging and
interesting.
 Different Forms of Business Ownerships
SOLE PROPRIETORSHIPS
The vast majority of small businesses start out as sole
proprietorships. These firms are owned by one person, usually
the individual who has day-to-day responsibility for running the
business. Sole proprietors own all the assets of the business and
the profits generated by it. They also assume complete
responsibility for any of its liabilities or debts. In the eyes of the
law and the public, you are one in the same with the business.
PARTNERSHIPS
In a partnership, two or more people share ownership of a single
business. Like proprietorships, the law does not distinguish
between the business and its owners. The Partners should have a
legal agreement that sets forth how decisions will be made, profits
will be shared, disputes will be resolved, how future partners will
be admitted to the partnership, how partners can be bought out,
or what steps will be taken to dissolve the partnership when
needed. Many partnerships split up at crisis times and unless
there is a defined process, there will be even greater problems.
They also must decide up front how much time and capital each
will contribute, etc
CORPORATIONS
A corporation, chartered by the state/province in which it is
headquartered, 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. The
shareholders elect a board of directors to oversee the major
policies and decisions. The corporation has a life of its own and
does not dissolve when ownership changes.
COOPERATIVE CORPORATION

A cooperative is a legally incorporated business owned and

controlled by its members. A cooperative is able to enter into
contracts under its corporate name. Liability for the individual
members of a cooperative is limited to the extent of the value of
shares held. You can only legally structure your business as a
cooperative if your business is organized as, and will be operated
as, 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 direct
political control than government departments. Although the 1951
federal Financial Administration Act (FAA) declared that crown
corporations are "ultimately accountable, through a minister, to
Parliament, for the conduct of (their) affairs," they are not subject
to budgetary systems or direct control of a minister in the same
way as government departments.

FRANCHISE

A franchise is a form of business organization in which a firm

which already has a successful product or service (the franchisor)
enters into a continuing contractual relationship with other
businesses (franchisees) operating under the franchisor's trade
name and usually with the franchisor's guidance, in exchange for
a fee.
 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
LESSON PLAN Subject: __Accounting 10__

Materials/Aids Required: Computer Lab (1 computer per pair), Handouts of different

types of businesses.

Unit Introduction to Accounting

Topic Different types of business enterprises

Content Identify what types of businesses are in the world

Objectives:
SWBAT describe the differences between different types of businesses that exist,
1 and be able to name three businesses of each type from Saskatchewan.

Pre Requisite Learning: None

Presentation:
Set:
Students will name different businesses in Saskatchewan. List each of them
on the board. At least 15.
5 min

Development:
Tell students about the different types of businesses that exist. Manufacturing,
Service, and Merchandising.

Students will pair up with one another and write down the answers that they
find.

Students will do a quick research of different types of businesses and name

three businesses of each type that exist in Canada.

35 min.

Closure:
Go back to the list of companies that were listed on the board and fill in the
type of company each one was.
At the end of class give each student a handout of definitions of the business
types.
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 on
task and not doing anything they aren’t supposed to be doing.

Common Essential Learnings:

TL – Students will be using the computer to locate and understand information about different
types of businesses and then applying that knowledge to look up specific businesses in
Canada.

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

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

Adaptations: Blind student in the class. Will have her paired up with one of the stronger
students in the class to ensure that she is getting the proper understanding.
LESSON PLAN Subject: ______Accounting 10______

Materials/Aids Required: Overhead, Overhead sheets, Overhead markers, GAAP

definitions sheet, GAAP assignment

Unit Module 1A – Introduction to Accounting

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

Content Introduce students to the Generally Accepted Accounting Principles and

explain why they are needed.

Objectives:
Given instruction on the Generally Accepted Accounting Principles SWBAT
1 accurately identify at least 7 out of 10 of the correct answers on the GAAP
assignment.
After completing an assignment on the GAAP SWBAT correctly create six of their
2 own statements/scenarios involving the GAAP.

Pre Requisite Learning: None

Presentation:
Set:
• Begin today’s lesson by letting the students know that they will be learning about
the Generally Accepted Accounting Principles. Ask the students if they have any
knowledge of the GAAP or have heard of them before? Prompt students into a
discussion as to why accounting principles might be important. If students aren’t
participating then explain the need for principles and ethics in any field of work to
make sure information is reliable. Use the analogy of a scorekeeper at a
basketball game, although the rules a scorekeeper follows aren’t quite as formal
as the GAAP. A scorekeeper is to adjust the score sheet to the correct score
every time a basket is scored and then credit the amount of points to the player
who scored. If the scorekeeper doesn’t credit the right player for points than the
score sheet is not a reliable source of information for opposing teams. The
opposition may rely on the score sheet as a means for scouting the other team
and therefore they need reliable, consistent, and comparable score sheets done
from each game. This analogy is done to relate the importance of reliable
information to students. Discuss as a whole class and ask students for any lines
of work they can think of that relate to this.

7 min.
Development:
• Students will now be introduced to the Generally Accepted Accounting Principles
(GAAP). Begin by writing the definition of GAAP on the overhead and having
students copy it into their notes. Definition:
• Generally Accepted Accounting Principles – The rules that make up
accepting 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 know
why we need GAAP. Also write down on the overhead sheet that the Canadian
Institute of Charted Accountants (CICA) sets the GAAP.
• While students are copying the definition down explain to them that information
that has relevance can affect the types of decisions made by users. Information
must have reliability for decision makers to depend on it. Consistency ensures
that information is prepared using the same accounting procedures from one
accounting period to the next. If companies use similar practices, users are able
to compare companies and the information possesses comparability. Let
students know that many people use the information from financial statements
and 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 with
the students also copying this down.
• Generally Accepted Accounting Principles
Business Entity Principle
Cost Principle
Objectivity Principle
Going Concern Principle
Monetary Unit Principle
Revenue Recognition Principle
Time Period Principle
Consistency Principle
Conservatism Principle
Matching Principle
Materiality Principle
Full Disclosure Principle

• Once students have all of the Principles written down explain to them that today
we will be focusing on the first six (which are underlined). We will be focusing on
these as they are going to be the most common for what students will be
focusing at this point in time. Explain to them that as they move on through the
year the other six principles may be introduced and explained when needed.
• Then give each student a copy of the Generally Accepted Accounting
Principles Definitions sheet (see attached). As a class go over this sheet and
discuss each definition/example to see if students have any questions. Choose
one 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
 given a small assignment to test their understanding of the principles. Hand out
the assignment sheet to each student in the class. (see attached GAAP
assignment) Tell students that they will be given approximately 12 minutes to
complete this assignment individually in class and then we will be marking it as a
class.
• 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 the
person behind them and for the person at the back of the row to hand theirs to
the person at the front for marking. Go through each question and first ask
students if anyone thinks they know the correct answer, if no one answers than
ask a student to give the answer from the sheet they have in front of them. After
each answer is given ask students to explain why this is the answer, if they are
having trouble ask them to look at their definitions sheet for help.
• Answers
1. Objectivity Principle
2. Revenue Recognition Principle
3. Business Entity Principle
4. Monetary Unit Principle
5. Cost Principle
6. Business Entity Principle
7. Objectivity Principle
8. Going-Concern Principle
9. Revenue Recognition Principle
10. 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 the
person 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 their
hand up and see how many people there are. Then ask for 9/9, 8/8, 7/7, Less
than 7 and see what the numbers are like for the class to see if they grasp the
GAAPs.
15 min.

Closure:
• In closing, recap the six GAAP covered in today’s class. Ask the class if
someone can explain one of the GAAPs without looking at their sheet. Try to get
one person for each GAAP and if unable to then explain the definition to students
again (see definition sheet). After this, ask all students to take a blank sheet of
paper 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 for
each of the six GAAPs we thoroughly discussed in today’s class. This is to be
handed in as an exit slip and tell students it will be marked out of 6 and returned
to them at next day’s class.

12 min.
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 not
students 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 6
situations/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 or
asking them a question.

Common Essential Learnings:

Critical and Creative Thinking (CCT) – In creating six scenarios of their own, students
are forced to think critically and apply the knowledge that they have gained in today’s
lesson.

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 with
another student in the class for the exit slip assignment. Their group is to come
up with 8 scenarios since they have to people working on it. Anymore than 8
would be unreasonable given the amount of time allotted to this activity. The
teacher would also make sure to designate a person in the class who writes
legibly and quickly to make a second copy of any notes taken in today’s class for
the student with the broken hand.
 GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP)
DEFINITONS

Business Entity Principle

Cost Principle
Objectivity Principle
Going Concern Principle
Monetary Unit Principle
Revenue Recognition Principle
Time Period Principle
Consistency Principle
Conservatism Principle
Matching Principle
Materiality Principle
Full Disclosure Principle

Business Entity Principle

Each economic entity or business of the owner must keep accounting records and reports that
are separate from those of the owner and any other economic entity of the owner. Users want
information about the performance of a specific entity. If information is mixed between two or
more entities, its usefulness decreases.
Example: In a sole proprietorship, the owner must not include personal expenses, such
as clothing and the cost of going to the movies, as expenses of their business.

Cost Principle
All transactions are recorded based on the actual cash amount received or paid. In the absence
of 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 the
accounting records at $5,000. It makes no difference if the business thinks that the value of the
furniture is $7,000.

Objectivity Principle
Financial statement information must be supported by independent, unbiased, and verifiable
evidence. The cost principle is also consistent with objectivity because most users consider cost
to be objective.
Example: If a business purchases new furniture and records the transaction based on an
invoice prepared by the seller, the invoice is independent and unbiased evidence that verifies
the details of the transaction.

Going Concern Principle

Financial statement users assume that the statements reflect a business that is going to
continue its operations instead of being closed or sold. Therefore, assets are maintained in the
accounting records at cost and not reduced to a liquidation value as if the business were being
bough or sold.
 Example: It is assumed from a review of a business’s financial statements that the
business is continuing its operations, because information to the contrary is not included.

Monetary Unit Principle

Transactions are expressed using units of money as the common denominator. It is assumed
that 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 the
business does not restate the value of the furniture. The furniture remains in the accounting
records at $1,489 (Cdn). This is also consistent with the cost principle.

Revenue Recognition Principle

Revenue is recorded at the time that it is earned regardless of whether cash or another asset
has been exchanged. The amount of revenue to be recorded is measured by the cash plus the
cash equivalent value (market value) of any other assets received.
Example: Assume that on April 3rd a business performed work for a client in the amount
of $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 the
business.
 Generally Accepted Accounting Principles Assignment

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

1. Karl James purchases equipment for SouthCo and records the transaction based on an
invoice 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 computer
for 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 the
national monetary unit of its country, such as dollars, yens, or francs, is the definition for
which principle?

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

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

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

verifiable evidence.

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

9. In October 2002, Classic Memorabilia Co. received a customer’s order that would not be
required until May 2002. The revenue should be recorded in May 2002.
10. Each economic entity or business of the owner must keep accounting records and
reports that are separate from those of the owner and any other economic entity of the
owner.
UNIT PLAN FEEDBACK SHEET

Requirements met: 1 Most definitely 2 Quite well 3 For the Most Part
4 Partially 5 Little evidence

1. Planning and Organization Comments:

1 2 3 4 5 Rationale statement
1 2 3 4 5 Prerequisite learning
1 2 3 4 5 Concept outline
1 2 3 4 5 Objectives

2. Selection of Teaching Methods/Student Activities Comments:

1 2 3 4 5 Choice of teaching methods
1 2 3 4 5 Choice of student activities
1 2 3 4 5 Selection of routines/procedures

3. Meeting Student Needs Comments:

1 2 3 4 5 Motivation
1 2 3 4 5 Varying interactions
1 2 3 4 5 Recognizing learning styles
1 2 3 4 5 Recognizing cross-cultural needs
1 2 3 4 5 Evaluation

4. General Assessment
1 2 3 4 5 Provision of appropriate teaching methods and learning activities for
student growth in all three domains
1 2 3 4 5 Meaningful sequence of experiences and components to accomplish
the central purpose of the unit
1 2 3 4 5 Interesting, relevant, and challenging, but achievable

Overall Thoughts/Opinions:
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. (1
is low, 10 is high). Explain.

5. Is there something else that we didn’t cover or something that you are more interested in
now that we have completed this unit? Explain.
 Unit Test – Introduction to Accounting
Student Name: ____________________________________
Vocabulary Matching – Match the definitions with the terms. 1 mark each.
1. Equity_____
2. Accountant_____
3. Revenues_____
4. Credit_____
5. Liability_____
6. Account_____
7. Financial Statements_____
8. Inventory_____
9. Journal_____
10. Debit_____
11. Partnership_____
12. Balance_____
13. Net Worth_____
14. Error_____
15. Matching Principle_____
Mark________%
A. Any book containing original entries of daily financial
transactions
B. Tangible property held for sale, or materials used in a production
process to make a product
C. Presentation of financial data including BALANCE SHEETS,
INCOME STATEMENTS and STATEMENTS OF CASH FLOW
D. Act that departs from what should be done; imprudent deviation,
unintentional mistake or omission.
E. Residual INTEREST in the ASSETS of an entity that remains after
deducting its LIABILITIES
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
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
H. Sum of DEBIT entries minus the SUM of CREDIT entries in an
ACCOUNT
I. Person skilled in the recording and reporting of financial
transactions.
J. Formal record that represents, in words, money or other unit of
measurement, certain resources, claims to such resources, transactions
or other events that result in changes to those resources and claims.
K. A fundamental concept of basic accounting.
L. the excess of ASSETS over LIABILITIES
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
N. DEBTS or obligations owed by one entity (DEBTOR) to another
entity (CREDITOR) payable in money, goods, or services.
O. Sales of products, merchandise, and services; and earnings from
INTEREST, DIVIDEND, rents.
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).
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
Answer Sheet

Matching
1. E 9. A
2. I 10. F
3. O 11. M
4. G 12. H
5. N 13. L
6. J 14. D
7. C 15. K
8. B

True and False

16. F
17. T
18. F
19. F
20. T
21. T
22. F
23. 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
Service – a company that provides a service, doesn’t hold any inventory for sale