what is accounting & the accounting equation
DESCRIPTION
This is a PowerPoint class review game that goes over "What is Accounting," some basic accounting definitions, and the accounting equation.TRANSCRIPT
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Accounting: Chapter 1
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What is the Concept of Accounting?
Think Critically Everyone Loves Vocabulary
It’s Time for…MORE vocabulary!
Solving Equations
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Team 2 :Team 1 :
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Accounting Concepts: 2 Points
The Answer Is :Applied when a business’s financial information is recorded and reported separately from the owner’s personal financial information
The Question Is :What is the accounting concept Business Entity? Stop!
Time’s Up!
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The Answer Is :Unit of measurement
The Question Is :The accounting concept Unit of Measurement uses a common what?
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Accounting Concepts: 3 Points
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The Answer Is :Applied when business transactions are stated in numbers that have common values – that is, using a common unit of measurement
The Question Is :What is the full definition for the accounting concept Unit of Measurement?
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Accounting Concepts: 4 Points
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The Answer Is :So that the financial reports of businesses can be clearly stated and understood in numbers that have comparable values
The Question Is :Why is the accounting concept Unit of Measurement followed?
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Accounting Concepts: 5 Points
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The Answer Is :Checking, business
The Question Is :An owner of a proprietorship must have two _________ accounts, one for personal expenses and another for the ___________.Stop!
Time’s Up!
Accounting Concepts: 6 Points
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The Question Is :
If I am the sole owner of my business, can I pay my personal car’s car note using the checking account of the business?
The Answer Is :No
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Accounting Concepts: 7 Points
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The Question Is :I have to take money out of my business’s account to pay the rent on my personal apartment. Am I going to deduct the money (in the business’s accounting record) as “rent” or from the “cash (withdrawal)?”
The Answer Is :Cash (withdrawal)
Stop! Time’s Up!
Accounting Concepts: 8 Points
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The Answer Is :dollars
The Question Is :
What unit of measurement are business transactions recorded in, in the United States?
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Accounting Concepts: 9 Points
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The Question Is :If the left side of the accounting equation is increased by $500, what will happen to the right side of the equation?
The Answer Is :It will increase by $500
Stop! Time’s Up!
Critical Thinking: 2 Points
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The Question Is :Why is it important to keep good accounting records?
The Answer Is :People such as suppliers who are extending credit and businesses extending loans will want to look at them. Poor accounting records lead to poor business decisions.
Stop! Time’s Up!
Critical Thinking: 3 Points
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The Question Is :How is owner’s equity affected when cash is received from sales?
The Answer Is :The amount of cash received will be added to the owner’s equity
Stop! Time’s Up!
Critical Thinking: 4 Points
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The Question Is :What are some of the advantages to owning a proprietorship?
The Answer Is :1. Ease of formation2. Total control by the owner3. Profits that are not shared
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Critical Thinking: 5 Points
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The Question Is :How is the owner’s equity affected when services are sold on account?
The Answer Is :The amount of services sold will be added to the owner’s equity as revenue
Stop! Time’s Up!
Critical Thinking: 6 Points
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The Question Is :How is the owner’s equity affected when cash is paid for expenses?
The Answer Is :The amount of cash paid for expenses is deducted from the owner’s equity
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Critical Thinking: 7 Points
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The Question Is :I just received $700 from someone that I provided services for last month. Where will I put this money in the equation?
The Answer Is :In the cash column, and in the owner’s Equity column (as revenue)
Stop! Time’s Up!
Critical Thinking: 8 Points
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The Question Is :
Explain the differences between assets, liabilities, and owner’s equity.
The Answer Is :
An asset is anything of value that is owned, because they can be used to acquire other assets or to operate business. Liability is the amount that a business owes to other people or businesses. The owner’s equity is what remains after the amount of all liabilities has been subtracted from the assets.
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Supply & Demand: 9 Points
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The Answer Is :Planning, recording, analyzing, and interpreting financial information
The Question Is :What is the definition of the word “accounting?”
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Key Terms: 2 Points
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The Answer Is :Financial statements
The Question Is :What are “financial reports that summarize the financial condition and operations of a business?”
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Key Terms: 3 Points
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The Answer Is :Equities
The Question Is :What are “financial rights to the assets of a business?”
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Key Terms: 4 Points
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The Answer Is :The account used to summarize the owner’s equity in a business
The Question Is :What is “capital?”
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Key Terms: 5 Points
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The Answer Is :An increase in owner’s equity resulting from the operation of a business
The Question Is :What is “revenue?”
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Key Terms: 6 Points
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The Answer Is :A sale for which cash will be received at a later date
The Question Is :What is a “sale on account?”
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Key Terms: 7 Points
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The Answer Is :Applied when business transactions are stated in numbers that have common values – that is, using a common unit of measurement
The Question Is :What is the accounting concept Unit of Measurement?
Stop! Time’s Up!
Key Terms: 8 Points
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The Answer Is :An equation showing the relationship among assets, liabilities, and owner’s equity.
Assets = Liabilities + Owner’s Equity
The Question Is :What is the definition of “accounting equation?” What is the equation itself?
Stop! Time’s Up!
Key Terms: 9 Points
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Key Terms : 2 Points
The Question Is :A planned process for providing financial information that will be useful to management is called an __________ ____________.
The Answer Is :Accounting system
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The Answer Is :A business owned by one person, also known as a sole proprietorship
The Question Is :What is a proprietorship?
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Key Terms : 3 Points
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The Question Is :Equities are financial _________ to the assets of a business.
The Answer Is :rights
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Key Terms : 4 Points
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The Question Is :What are ethics? What are business ethics?
The Answer Is :Ethics are the principles of right and wrong that guide an individual in making decisions. Business ethics are the use of ethics in making business decisions.
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Key Terms : 5 Points
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The Answer Is :A business activity that changes assets, liabilities, or owner’s equity
The Question Is :What is a transaction?
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Key Terms : 6 Points
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The Answer Is :A sale for which cash will be received at a later date
The Question Is :What does “sale on account” mean?
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Key Terms : 7 Points
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The Question Is :What is a withdrawal?
The Answer Is :Assets taken out of a business for the owner’s personal use
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Key Terms : 8 Points
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The Answer Is :An account is a record summarizing all the information pertaining to a single item in the accounting equation. The name given to an account is called an account title.
The Question Is :What is an account? What is an account title?
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Key Terms : 9 Points
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Solving Equations: 2 Points
The Question Is :Place a + or minus in the correct column (+ for increase, - for decrease): Received cash from owner as an investment.
The Answer Is :+ in assets and in owner’s equity
Trans. No. Assets Liabilities Owner’s Equity
1.
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The Question Is :Place a + or minus in the correct column (+ for increase, - for decrease): Paid cash for insurance.
The Answer Is :- In assets and in owner’s equity
Solving Equations: 3 Points
Trans. No. Assets Liabilities Owner’s Equity
1.
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The Answer Is :+ in liabilities
The Question Is :Place a + or minus in the correct column (+ for increase, - for decrease): Paid cash on account
Solving Equations: 4 Points
Trans. No. Assets Liabilities Owner’s Equity
1.
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The Answer Is :44,000
The Question Is :Fill in the empty column.
Solving Equations: 5 Points
Trans. No. Assets Liabilities Owner’s Equity
1. 95,000 51,000 ?
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The Answer Is :+ 1,600 in “Prepaid Insurance” & - 1,600 in “Cash”
The Question Is :Fill in the columns necessary: Paid cash for insurance - $1,600
Solving Equations: 6 PointsTrans.#
Assets = Liabilities + Owner’s Equity
Cash + Supplies + Prepaid Insurance +
Accts. Pay – F
Accts. Pay - R
Beg. Bal.
3,000
New Bal.
3,000
Stop! Time’s Up!
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The Answer Is :+ 900 in “Supplies”+ 900 in “Accts. Pay – F”
The Question Is :Fill in the columns necessary: Bought supplies on account from company “F” - $900
Solving Equations: 7 PointsTrans.#
Assets = Liabilities + Owner’s Equity
Cash + Supplies + Prepaid Insurance +
Accts. Pay – F
Accts. Pay - R
Beg. Bal.
3,000
New Bal.
3,000
Stop! Time’s Up!
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The Answer Is :- 300 in “Cash”- 300 in “Owner’s Equity”
The Question Is :Fill in the columns necessary: Paid cash to owner for personal use - $300
Solving Equations: 8 PointsTrans.#
Assets = Liabilities + Owner’s Equity
Cash + Supplies + Prepaid Insurance +
Accts. Pay – F
Accts. Pay - R
Beg. Bal.
625-300
375 300 200 1,100-300
New Bal.
325 375 300 200 800
Stop! Time’s Up!
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The Answer Is :Add 800 to “cash”; 1125Add 800 to “Owner’s Equity”; 1600
The Question Is :What columns will be affected, and what will the new balance be: Received cash from sales - $800
Solving Equations: 6 PointsTrans.#
Assets = Liabilities + Owner’s Equity
Cash + Supplies + Prepaid Insurance +
Accts. Pay – F
Accts. Pay - R
Beg. Bal.
625-300
375 300 200 1,100-300
New Bal.
325 375 300 200 800
Stop! Time’s Up!