Teachers Notes.docx

1、Teachers NotesIntroduction to accounting & financeVocabulary 1.2 Teachers notesIn this session you will: read a short passage to learn new accounting vocabulary use basic accounting terminology in context.Timing: 30 Minutes and 30 Minutes Homework Your business as a boxBefore getting students to rea

2、d the article, draw a box on the whiteboard. Illustrate the concept of the reading by adding and subtracting money to the box to represent capital, owners equity, profit, and creditors. Timing: 10 minutes1. Read through the following article.Your business as a boxPicture your business as a box. The

3、box has contents, so you, as the owner have a right or a claim to the value of the contents. Others may also have a claim, for example if they have lent money to the business, or supplied goods and services for which they have not been paid. These people are known as creditors.As the business buys o

4、r sells goods and services, the value of the contents of the box will increase or decrease, according to whether the business makes a profit or a loss. These changes in the value of contents must be equal to the changes to the value of owners or the creditors claims on contents. The claims of the ow

5、ners will also change so that the total value of claims is always equal to the value of the contents.A balance sheet is simply a list of the value of contents that is balanced (equal) to the list of the claims by the owners and the creditors. In accounting terms this becomes:(1) ASSETS = LIABILITIES

6、 + EQUITYAssets are items of value owned by the business. Equity is the claim of the owners, and liabilities are claims of the creditors. Owners equity includes the capital (money) that was originally put into the business and reserves. Reserves are profits which have been kept in the business. Voca

7、bulary After reading the text, give the students 10 minutes to match the words 1-12 in the box with their definitions. Tell them to use the context to help them make their choices and prevent them from using dictionaries (as these may give them the wrong definitions and it will also take up too much

8、 time in class.) Circulate around the room monitoring students work and helping them where needed. Timing: 10 minutes Check answers with students.2. Using the text on the previous page, match the accounting terms 1-12 with the correct definitions a-l.Answers 1. Claimda. When the money earned by a bu

9、siness are more than the money owed by the business in a financial year2. Goodsib. Money that a company owes to its creditors.3. Servicesfc. A place to record what a company owns (assets) and what it owes (liabilities and equity) over a set period of time4. Creditorsld. The right to get something th

10、at belongs to you5. Profitae. Income earned that is kept in the business to be used in the future.6. Lossjf. Doing something for someone in return for payment7. Balance sheetcg. The owners claim on the assets of a business8. Assetskh. Money given by the owners to a business9. Equitygi. Products whic

11、h can be traded or sold10. Liabilitiesbj. When the expenses of a business are more than the income earned by it in a financial year11.Capitalhk. Things of value that a company controls 12.Reservesel. People who are owed money in exchange for providing goods and/or servicesComprehension3. Use the wor

12、ds from activity 2 to fill in the gaps in the following sentences.Give the students 10 minutes to complete activity 3. Tell them to use the context to help them make their choices and prevent them from using dictionaries (as these may give them the wrong definitions) Circulate around the room monito

13、ring students work and helping them where needed. Check answers with students. If this activity is not completed in class get students to complete it for homework. Draw students attention to the section on recording vocabulary and remind students to update their vocabulary lists on a continual basis

14、.Use the words from activity 2 to fill in the gaps in the following sentences. Allow 10 minutesAccounting termsequity, capital, goods, profits, balance sheet, service, assets, claim, loss, reserves, creditors, liabilities.a. By carefully examining the balance sheet the accountant was able to underst

15、and what company owned and what it owed.b. A service is when a company does something in exchange for payment.c. If the liabilities are always greater than the assets then the business will fail.d. Liabilities, owners equity and assets are always shown on a balance sheet.e. If the money owed by a bu

16、siness is greater that the income earned, the company will make a loss.f. Profits that are kept in the business for future use are also known as reserves.g. We purchased thousand pens, so now we owe our creditors three thousand dollars. h. The business has earned more money than it owed last financi

17、al year so its profits have increased. i. The owners provided the capital investment to start up the new business.j. Goods are objects of value that are sold in exchange for money. k. The owners claim on a business is also known as owners equity. Recording vocabulary 4. When you record new vocabular

18、y in your vocabulary notebook or on the wiki, as well as the definition of the word, its a good idea to include information such as the word form, related word forms, and synonyms and antonyms. Its also a good idea to write your own sentence using that word. Look at the following example for the wor

19、d “expense”.Expense: (n.) Cost or chargeSentence: Owning a car is a great expense.Antonym: inexpensiveRelated words: expensive (adj.) expenditure (n.) expensively (adv.)Synonyms: charge, cost, disbursement, outlay, paymentDifferent accounting entitiesSummarising 2.1 Teachers notesIn this session you

20、 will: extract key points from a text practice writing a summary understand differences between the four financial statementsTiming: 30 minutesHow to summarise a text1. Complete these sentences using the key words below to help you to remember how to summarise a text. Have the students complete this

21、 exercise very quickly and go through the answers. Allow 3 minutes for this activityAnswersa. Read the text through carefully to make sure you understand it.b. Check if the paragraph has a topic sentence containing the main idea that could be the basis of a good summary.c. As you read, underline any

22、 key words that relate to the main idea.d. Delete words not related to the main idea (repetitions or maybe adjectives).e. Construct sentences which summarise the main idea by pulling together the key words you have identified.f. Check again and delete any unnecessary words to make the message as dir

23、ect as possible.Write “the four main financial statements” on the white board and ask the class if they know what they are and write the answers on the board. Briefly mention that in Australia we use the terms on the left of the table but that in America other terms can be used to describe the state

24、ments.Allow 5 minutes.Australia / UKUSABalance sheet Statement of financial position Profit and Loss statement/ Income StatementStatement of earningsCash Flow StatementStatement of Changes in Owners Equity.Summarising practice 2. Read the following section taken from your text book and underline the

25、 key words.Answers The four financial reportsThe four main financial reports taken together provide an overall picture of the financial health of the business. Perhaps the best way to introduce the financial reports is to look at an example of a very simple business. From this we shall be able to se

26、e what sort of useful information each of the statements can provide.Each financial report provides part of the picture of the financial performance and position of the business. We begin by showing the cash movements in the cash flow statement. Cash is vital for any business to function effectively

27、: to meet obligations1, to acquire other resources (such as stock/inventory2) to satisfy operating expenses, and to meet ownership distributions. Cash has been described as the “life blood” of a business and movements in cash are usually given close scrutiny3 by users of financial statements.However

28、, it is clear that reporting cash movements alone would not be enough to portray the financial health of the business. The stages in cash over time do not fully reveal the profit generated4. The income statement provides an insight into this aspect of performance. For day 1 for example, we saw that

29、the cash balance increased by $10 but the profit generated, as shown by the income statement, was $35. The increase in wealth ($35) was represented by $10 cash and $25 in the form of stock (inventory).To determine the total wealth of the business a balance sheet is drawn up at the end of the day. Ca

30、sh is only one form in which wealth can be held. In the case of this business, wealth is also held in the form of inventory (stock of goods for resale). Drawing up the balance sheet involves listing both forms of wealth held. In the case of a large business, there may be many other forms of holding

31、wealth, such as land and buildings, equipment and motor vehicles.Source: Atrill, P., McLaney, E., Harvey, D, & Jenner, M. 2009. Accounting: an Introduction 4E. Pearson Education Australia, p.11. Summary 3. Summarise the main idea using about 5 sentences. Teacher to circulate around the room assistin

32、g students. Timing: 15-20 Minutes Compare your summary with a partner. NoteThis activity might have to be deleted if there is not enough time.4. Now compare your summary with the model your teacher will show you and write it down. Teacher writes model answer on the board. If there is not enough time for students to