BAT4M – Mr. Bryan Tran - Page 1 of 4
Unit 1 – The Accounting Cycle
Module 1 - Introduction to Accounting
Fundamental
Accounting Principles
and Practices;
Ethics and Issues in
Accounting
Expectations:
Overall Expectations – The Accounting Cycle (Grade 12)
By the end of this course, students will:
• demonstrate an understanding of accounting principles and
practices;
• demonstrate an understanding of ethics and issues in accounting.
Overall Expectations – Fundamental Accounting Practices
(Grade 11)
By the end of this course, students will:
• describe the discipline of accounting and its importance for
business;
• describe the differences among the various forms of business
organization.
Specific Curriculum Expectations (Grade 12 Expectations):
A) Ethics and Issues in Accounting
By the end of this course, students will:
– describe the impact of ethical issues on accounting practices;
– analyze the effects of current issues on financial accounting (e.g.,
transactions off the balance sheet, fraudulent practices in financial
statement reporting, manipulation of GAAP, move towards global
accounting practices);
– evaluate the impact of the evolution of technology on the field of
accounting.
Specific Curriculum Expectations (Grade 11 Expectations):
B) Introduction to Accounting as a Discipline
By the end of this course, students will:
– explain the purpose of accounting;
– explain the difference between accounting and bookkeeping;
– identify the users and uses of accounting;
– identify the Generally Accepted Accounting Principles (GAAP)
and explain their importance.
C) Business Structures
By the end of this course, students will:
– describe the characteristics of different forms of business
organization, including sole proprietorship, partnership, and
corporation;
– describe the advantages and disadvantages of different forms of
business organization, including sole proprietorship, partnership,
and corporation;
– explain the differences among the equity sections of different
forms of business organization, including sole proprietorship,
BAT4M – Mr. Bryan Tran - Page 2 of 4
partnership, and corporation (e.g., capital account in a sole
proprietorship versus common stock in shareholders’ equity in a
corporation).
Big Questions:
1) What is the role of accounting?
2) What are the three basic forms of businesses organization?
3) What is the conceptual framework of accounting?
4) Why is financial reporting important?
5) Who are the users of accounting information?
6) What makes accounting information useful?
7) What constraints are there in providing accounting
information?
8) What are our assumptions in financial reporting?
9) What exactly are we accounting for?
10) What is the basic accounting equation?
11) What are the four basic financial statements?
12) How do ethics affect accounting?
Fundamental
Accounting Practices
Three topics covered in this lesson
 see three entries for Day 1 below
Day 1
Role of Accounting
Topic 1:
Describe the role of accounting and its importance for business.
Day 1
Reading & Review:
• Read/review the Chapter 1 Student Summary Handout
• Review PowerPoint – Module 1, Day 1, Topic 1 – Role of
Accounting
• Read text, pages 1 to 5.
Business Structures
Day 1
Topic 2: Business Structures
1. Describe the characteristics of different forms of business
organization, including sole proprietorship, partnership, and
corporation.
2. Describe the advantages and disadvantages of different forms of
business organization.
3. Explain the differences among the equity sections of different
forms of business organization e.g., capital account in a sole
proprietorship versus common stock in shareholders’ equity in a
corporation.
Reading & Review:
• Review PowerPoint – Module 1, Day 1, Topic 2 – Forms of
Business Organization
• Read document – Characteristics of Businesses
• Read text, pages 5 to 7.
BAT4M – Mr. Bryan Tran - Page 3 of 4
Practice Questions
• S1-3 on page 35 (see handout)
Accounting as a
Discipline
Day 1
Topic 3: Accounting as a Discipline
1. Explain the purpose of accounting.
2. Explain the difference between accounting and bookkeeping.
3. Identify the users and uses of accounting.
4. Identify the Generally Accepted Accounting Principles (GAAP)
and explain their importance.
Reading & Review:
• Review PowerPoint – Module 1, Day 1, Topic 3 – Purposes
of Accounting
• Review PowerPoint – Module 1, Day 1, Topic 3 – Accounting
Standards Bodies
• Read document – Financial Reporting Framework in
Malaysia
• Read text, pages 7 to 14
Practice Questions
• S1-4 on page 35 (see handout)
• S1-5 on page 35 (see handout)
The Accounting
Equation; Financial
Statements
Day 2, 3 & 4
Reading & Review:
• Review PowerPoint – Module 1, Day 2 – The Accounting
Equation & Financial Statements
• Read again text pages 1 to 3 (Samsung; Business
Decisions)
• Read text, pages 14 to 27 (The Accounting Equation;
Financial Statements)
Practice Questions
• Answer the following seven (7) Short Exercises on page 36:
• S1-8; S1-9; S1-10; S1-11; S1-12; S1-13; and S1-14.
You may want to discuss these questions with one or two other
students.
These questions should take about 55 to 65 minutes to complete.
Please hand in.
Written Assignment to Hand In
• Please complete the two (2) related exercises and hand
in at the end of class on Wednesday, 23 July:
• E1-21A on p. 38 – Ellen Samuel Banking Company
balance sheet
• E1-22A on p. 39 – Ellen Samuel Banking Company
income statement and statement of changes in equity
These two exercises should take you 30 to 45 minutes.
BAT4M – Mr. Bryan Tran - Page 4 of 4
Remember the Balance Sheet accounting equation to determine the
total Shareholders’ Equity on the balance sheet.
Remember that Equity in this case consists of two items: Retained
Earnings and Share Capital. You are given the $ amount for Share
Capital. You have to calculate the ending Retained Earnings by
plugging the amount.
Remember to use the three-line heading on each financial
statement; if you do not, you will lose 3 marks for each statement!
I have given you E1-22A because this question is related and I want
to see if you can do all three financial statements.
Ethics
Reading & Review:
• Read text, pages 27 to 29
Day 5, 6 & 7
& Discussion:
“Enron: The Smartest Guys in the Room”
A documentary about the Enron corporation, its faulty and corrupt
business practices, and how they led to its fall.
Written Paragraph to Hand In:
Please hand in the written paragraph on your thoughts
regarding Enron and ethics (or lack thereof) by end of class
Monday, 4 August.
Quiz for Chapter 1