Lesson Plan 1.2 – Basic Accounting Equation Course Title – Accounting I Session Title –Basic Accounting Equation Lesson Objective – Understand the accounting checks and balances system with the accounting equation. Behavioral Objectives: Define terms related to the basic accounting equation. Solve the basic accounting equation for missing numbers. Classify accounts. Preparation OLD TEKS Correlations: 2010 TEKS Correlations: This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed. This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the elimination of any or all of the TEKS listed. 120.42.C: 1.b. apply basic accounting concepts 130.166.C: 1.a. describe the purpose of and terminology; 7.a. follow oral and written instructions; 7.b. develop time management skills by setting priorities for completing work as scheduled; accounting and financial reporting. TAKS Correlation: MATH Objective 10: The student will demonstrate an understanding of the mathematical processes and tools used in problem solving. Materials Needed: Textbook Flip chart, poster board, dry erase board, - or- butcher paper Materials and Equipment Needed: Computer with Internet access Textbook Teaching Strategies: Demonstration Lesson Plan 1.2 – Basic Accounting Equation Copyright © Texas Education Agency, 2011. All rights reserved. ACCOUNTING I Observation Learner Preparation: Have students use the “Owe and Own worksheet” to brainstorm a few things they own and a few things they owe (or they think a family probably owes) Assessment: Observation Checking for Understanding Additional Resources: Textbooks: Guerrieri, Donald J., Haber, Hoyt, Turner. Glencoe Accounting RealWorld Applications and Connections. Glencoe McGraw-Hill 2000. ISBN/ISSN 0-02-815004-X. Ross, Kenton, Gilbertson, Lehman, and Hanson. Century 21 Accounting Multicolumn Journal Anniversary Edition, 1st Year Course. SouthWestern Educational and Professional Publishing, 2003. ISBN/ISSN: 0-538-43524-0 Ross, Kenton, Gilbertson, Lehman, and Hanson. Century 21 General Journal Accounting Anniversary Edition, 7th Edition. SouthWestern Educational and Professional Publishing, 2003. ISBN/ISSN: 0-538-43529-1. Websites: Accounting Equation - QuickMBA: Accounting, Business Law, Economics, Entrepreneurship, Finance, Management, Marketing, Operations, Statistics, Strategy; http://www.quickmba.com/accounting/fin/equation/ Dictionary of Small Business, Dictionary of Small Business, . http://www.small-business-dictionary.org/ InvestorWords.com - Investing Glossary, http://www.investorwords.com/49/accounting_equation.html Accounting Concepts Tutorial-Accounting Equation. Financial Services Office. http://www.fso.arizona.edu/training/tutorials/accounting/equation1.html Lesson Plan 1.2 – Basic Accounting Equation Copyright © Texas Education Agency, 2011. All rights reserved. ACCOUNTING I Name: ______________________ Date: __________________ QUIZ ON THE ACCOUNTING EQUATION 1. An asset is a. Something owed b. Something owned c. Investment in the business d. Business’ Net worth 2. A liability is a. Something owed b. Something owned c. Investment in the business d. Business’ Net worth 3. Another word for capital is a. Investment b. Net Worth c. Owner’s Equity d. All of the above 4. Cash is a (n) a. Asset b. Liability c. Capital d. None of the above 5. Equipment is a (n) a. Asset b. Liability c. Capital d. None of the above 6. The accounting equation is a. Assets + Liabilities = Capital b. Assets = Liabilities + Capital c. Liabilities – Capital = Assets d. None of the above 7. A beginning business has a cash balance of $5,500. They owe no money. What is their investment in the business? a. 0 b. $2,250 c. $5,500 d. None of the above 8. Which business is more likely to get a bank loan? a. Business A: Assets $7,000; Liabilities $6,500 b. Business B: Assets $9,200; Liabilities $87,000 c. Business C: Assets $5,100; Liabilities $100 d. Business D: Assets $450; Liabilities $150 QUIZ ON THE ACCOUNTING EQUATION - 1.2.1 Copyright © Texas Education Agency, 2011. All rights reserved. ACCOUNTING 1 Name: ______________________ Date: __________________ QUIZ ON THE ACCOUNTING EQUATION KEY 1 An asset is a. Something owed b. Something owned c. Investment in the business d. Business’ Net worth 2 A liability is a. Something owed b. Something owned c. Investment in the business d. Business’ Net worth 3 Another word for capital is a. Investment b. Net Worth c. Owner’s Equity d. All of the above 4 Cash is a (n) a. Asset b. Liability c. Capital d. None of the above 5 Equipment is a (n) a. Asset b. Liability c. Capital d. None of the above 6 The accounting equation is a. Assets + Liabilities = Capital b. Assets = Liabilities + Capital c. Liabilities – Capital = Assets d. None of the above 7 A beginning business has a cash balance of $5,500. They owe no money. What is their investment in the business? a. 0 b. $2,250 c. $5,500 d. None of the above 8 Which business is more likely to get a bank loan? a. Business A: Assets $7,000; Liabilities $6,500 b. Business B: Assets $9,200; Liabilities $87,000 c. Business C: Assets $5,100; Liabilities $100 d. Business D: Assets $450; Liabilities $150 QUIZ ON THE ACCOUNTING EQUATION - 1.2.1 Copyright © Texas Education Agency, 2011. All rights reserved. ACCOUNTING 1 Name: ____________________Date: ____________________ OWE AND OWN WORKSHEET What I own: ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ Lesson 1.2 – Owe and Own Worksheet What I owe (or a few things a family probably owes): ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ ________________ Copyright © Texas Education Agency, 2011. All rights reserved. ACCOUNTING I