Accounting and Business

1. 1 Accounting and Business 1

2. Chapter 1What is Accounting? Find a partner and see if you can write down a definition of accounting!

3. Chapter 1Definition • Accounting is a of dealing with financial data that provides information for

4. Chapter 1The 5 Main Activities

5. Chapter 1Accounting in the lower mainland • In groups of two or three: • Go online to find an accounting firm in the lower mainland. How do • their offered services represent the 5 main activities of accounting? • Name and location of the company. • List of services offered. • Who is on the firm’s team? Backgrounds/certifications? • Connections to the 5 main activities accounting.

6. Chapter 1 Types of Businesses 1. Service Businesses Examples: Movie theatre Hair salon Physiotherapy clinic Accounting firm Catering company 2. Examples: Motorcycle dealership Clothing store Video game store Sporting goods store Grocery store 6

7. Chapter 1 Types of Businesses 3. Examples: Computer manufacturer Car manufacturer Food-processing company Farm equipment manufacturer 4. Non-Profit Organizations (NPO) Examples: Religious organization Charity Amateur sports organization NGOs (non-governmental organization) 7

8. Chapter 1 • Forms of Business Ownership • 1. Sole Proprietorship • Examples: • Dr. Joe Dimitry, Dentist Rosa’s Pizza • Alf’s Home Bakery Rustic Pottery—Miriam Daily, owner • 2. • Examples: McPhearson & Scott, Chartered Accountants Bucchino & Magalli, Barristers and Solicitors Hakala and Sons Service Centre Café Crème—Solange Dion and Alex Boucher, owners 8

9. Chapter 1 • Forms of Business Ownership • 3. Limited Company or Corporation • Examples: • Pool People Ltd. • Uni Electrical and Mechanical Ltd. • Gunn’s Auto Service Ltd. • Building Resources Ltd., Construction Consultants • 3. • Examples: • Housing cooperatives • Our Ecovillage on Vancouver Island • Worker-owned cooperatives 9

10. Chapter 1 • Worker-Owned Cooperatives: • http://institute.coop/examples-worker-cooperatives • Assignment 1 • Organizational Structures – Pros and Cons: • https://canadabusiness.ca/starting/before-starting-your-business/corporation-partnership-or-sole-proprietorship/ • Assignment 2

11. Chapter 1 – The Accounting Cycle l Accounting 1, 7th Edition The Accounting CycleFour of the steps occur in the outer ring.

12. Chapter 1 – The Accounting Cycle l Accounting 1, 7th Edition The Accounting Cycle1. Transactions occur.

13. Chapter 1 – The Accounting Cycle l Accounting 1, 7th Edition The Accounting Cycle2. Transactions are recorded in the journal.

14. Chapter 1 – The Accounting Cycle l Accounting 1, 7th Edition The Accounting Cycle3. Journal entries are posted to ledger accounts.

15. Chapter 1 – The Accounting Cycle l Accounting 1, 7th Edition The Accounting Cycle4. Trial balance and interim financial statements are prepared.

16. Chapter 1 – The Accounting Cycle l Accounting 1, 7th Edition The Accounting CycleThese outer ring activities are ongoing and cyclical.

17. Chapter 1 – The Accounting Cycle l Accounting 1, 7th Edition The Accounting CycleFour of the steps occur in the inner ring.

18. Chapter 1 – The Accounting Cycle l Accounting 1, 7th Edition The Accounting Cycle5. The worksheet is prepared.

19. Chapter 1 – The Accounting Cycle l Accounting 1, 7th Edition The Accounting Cycle6. Formal financial statements are prepared.

20. Chapter 1 – The Accounting Cycle l Accounting 1, 7th Edition The Accounting Cycle7. Ledger accounts are adjusted and closed.

21. Chapter 1 – The Accounting Cycle l Accounting 1, 7th Edition The Accounting Cycle8. The post-closing trial balance is prepared.

22. Chapter 1 – The Accounting Cycle l Accounting 1, 7th Edition The Accounting CycleThe cycle is complete and it begins to repeat itself.

23. Guest Speaker: Craig Murata • Let’s prepare some good questions for Craig!