AccountingAccounting

An IntroductionAn Introduction

ACCOUNTING WARM UPACCOUNTING WARM UP

• Side A vs. Side BSide A vs. Side B• First person to hit the “fly swatter” First person to hit the “fly swatter”

guesses firstguesses first• If you are correct, your team gets a If you are correct, your team gets a

pointpoint

500 – 100500 – 100

200 + 300 200 + 300 +700+700

250 + 450 250 + 450 + 800 + 800

35,000 – 35,000 – 14,50014,500

340 + 450 340 + 450 + 300 – 200 + 300 – 200

+ 670+ 670

13.79 x 0.13 13.79 x 0.13

370.50 x 5%370.50 x 5%

35,00035,00014,50014,500

270,000 – 270,000 – 14,50014,500

1010

2,000 + 3,420 2,000 + 3,420 + 230+ 230

1500 + 17401500 + 1740

What Do You Think Of What Do You Think Of When I Say Accountant?When I Say Accountant?

What I think ofWhat I think of

What is Accounting?What is Accounting?

• the process of recording, analyzing the process of recording, analyzing and interpreting the economic and interpreting the economic activities of a businessactivities of a business

• In other words: Recording all In other words: Recording all financial transactions in order to financial transactions in order to analyze if a business is making analyze if a business is making money or notmoney or not

AccountabilityAccountability

• being responsible, being able to being responsible, being able to explain any shortages or explain any shortages or discrepanciesdiscrepancies

Financial statementsFinancial statements• reports that summarize the financial reports that summarize the financial

purpose of a businesspurpose of a business• Must be presented to shareholders Must be presented to shareholders

in the form of an annual report.in the form of an annual report.• Balance Sheet – Assets, Liabilities, Balance Sheet – Assets, Liabilities,

EquityEquity• Income Statement – Revenue & Income Statement – Revenue &

ExpensesExpenses

Calculating Your Net Calculating Your Net WorthWorth

• Your net worth is a measure of how Your net worth is a measure of how valuable you are in terms of $$$.valuable you are in terms of $$$.

• On a piece of paper make two columns:On a piece of paper make two columns:OWNOWN OWEOWE

• Are any of your assets more liquid than Are any of your assets more liquid than others? (can any be sold more quickly others? (can any be sold more quickly than others)than others)

New TermsNew Terms

• Asset – Something that has value Asset – Something that has value and is and is ownedowned by a business by a business

• Liability – Debts or amount Liability – Debts or amount owedowed by by a businessa business

• Equity – The net worth of a business Equity – The net worth of a business

The Accounting EquationThe Accounting Equation

Stewie’s Yard SaleStewie’s Yard Sale

Accounting DesignationsAccounting Designations

• There are three main types of There are three main types of accountants in Canadaaccountants in Canada– Chartered Accountant (CA)Chartered Accountant (CA)– Certified Managerial Account (CMA)Certified Managerial Account (CMA)– Certified General Accountant (CGA)Certified General Accountant (CGA)

• All three have different school All three have different school requirements, different qualification requirements, different qualification standards, different skill sets and standards, different skill sets and different salary rangesdifferent salary ranges

Chartered Accountants Chartered Accountants (CA’s)(CA’s)

• Your job is simple. Use the internet to find:Your job is simple. Use the internet to find:

1.1.Find the roles and responsibilities of a CAFind the roles and responsibilities of a CA

2.2.Find the expected starting salary of a CAFind the expected starting salary of a CA

3.3.Find the schooling that is necessary to be a Find the schooling that is necessary to be a CACA

4.4.Find the professional experience needed to Find the professional experience needed to be a CAbe a CA

www.cica.ca – this site will help you quite a bitwww.cica.ca – this site will help you quite a bit