Course Overview – Accounting is the language of business. Being able to understand the language is important for everyone: owners, managers, accounting staff, creditors, potential investors, and nearly everyone who earns money and submits income tax returns.
At the beginning of the first unit, students will learn: key accounting terms, what the accounting equation is plus how to keep it in balance, and how to start a proprietorship. The remainder of the unit focuses on how the accounting equation changes with each individual transaction. Unit one takes us from the very first balance sheet through the end-of-fiscal period work of a sole proprietorship organized as a service business. A total of nine chapters plus two reinforcement activities are completed in this unit.
The most effective way to truly understand the entire accounting process is to learn it manually. However, in the “real world” of business, the systems are generally automated to make the accounting process more efficient. As companies become more dependent on technology, we need to be certain that more attention is paid to the detail of the original entries of data. The system is only as good as the people who input the information. Unit two introduces the students to the world of automated accounting.
Partnership accounting for a merchandising business is covered in unit three. We move from a sole proprietor to multiple owners in this phase of the course. The process now becomes more complex with separate capital and drawing accounts for each of the partners. Additional financial statements are used to show changes in equity.
Each chapter includes various terms, illustrations, demonstration problems, “regular” problems plus mastery and challenge problems. Reinforcement activities and practices sets are also incorporated to help students complete the entire accounting cycle(s).