Chapter 1

Scope and Sequence

Lesson 1-1 The Accounting Equation

• • What is accounting? 

  • The business - TechKnow Consulting

  • The accounting equation 

Lesson 1-2 How Business Activities Change the Accounting Equation 

• • Received cash investment from owner

  • Paid cash for supplies

  • Paid cash for insurance

  • Bought supplies on account

  • Paid cash on account

Lesson 1-3 How Transaction Change Owner's Equity in an Accounting Equation 

• • Received cash from sales

  • Sold services on account

  • Paid cash for expenses

  • Received cash on account

  • Paid cash to owner for personal use

Chapter Objectives

• • Defining accounting terms related to starting a service business organized as a proprietorship and to change that affect the accounting equation 

  • Identify accounting concepts and practices related to starting a service business organized as a proprietorship and to changes that affect the accounting equation 

  • Classify accounts as assets, liabilities, or owner's equity and demonstrate their relationship in the accounting equation 

  • Analyze how transactions affect accounts in an accounting equation

Vocabulary 

• • Accounting

  • accounting System

  • Accounting Records

  • Financial Statements

  • Service Business

  • Proprietorship

  • Asset

  • Equities

  • Liability

  • Owner's Equity

  • Accounting Equation

  • Ethics

  • Business Ethics

  • Transaction

  • Account

  • Account Title

  • Account Balance

  • Capital

  • Revenue

  • Sale on Account

  • Expense

  • Withdrawals