Accounting 11 Amanda Luu

Sept.10.2010

Canadian Journey (01’ – 04’)

Note Value Portrait Scene Colour Shelf-Life

$5 Wilfred Children at Blue 1 – 2 years
Laurier Play
$10 John A. Remembrance Purple 1 – 2 years
Macdonald
$20 Queen Arts and Green 2 – 4 years
Victoria the Culture
Second
$50 William King National Red 4 – 6 years
Building
$100 Robert Exploration Brown 7 – 9 years
Borden and
Inspiration

Birds of Canada (1990’s)

$2 – Pink – 1996 – Toonie
$1000 – Magenta - 1992

Counterfeit Money PowerPoint

• The Bank of Canada is the Banker’s bank
• Only the Bank of Canada can issue Canadian paper money
• Our notes are made of cotton
• Bank of Canada is always printing money
• Distributes them to financial institutions across the country
• Fake notes are used to finance illegal activity
• Victims of counterfeit lose out on being reimbursed
• Criminals of counterfeit find it harder to cross the borders, find jobs
and receive bonds

What is Business
Business  Production and sale of goods and services to a customer
 Provides things that are needs and wants
• Need: Basic things needed to survive
• Want: A thing that makes life easier; not a necessity
• Customer: Buys things
• Consumer: Uses things
• Goods: Material/something tangible/something you can
hold
• Service: Something done to you, something someone
else does for you
 o ie: Hair Salon, Accounting Firm, Massage Parlours
Merchandising Buys goods and sells them back for higher profit
o Ie: Wal-Mart, Superstore

Manufacturing/Producing Buys raw materials, turns them into products and

sells the products (can sell them to businesses or individuals)
o Farms, Steel plants

Non-Profit Meets the needs of social group without the ultimate goal of
making money
o Canadian Red Cross, LiveStrong Foundation.

Sole Proprietorship Business owned by a person

Partnership Business jointly owned by 2 – 6 people
CorporationCrown; Business owned by gov’t
PrivateBusiness can have up to 50 shareholders (not offered in public)
PublicNo restrictions to the number of shareholders/ Shares are offered to
the general public. Almost all businesses are corporations.

Franchise Franchisor sells to another person (franchisee) the rights to use

the business name and to sell a product or service in a specific territory –
Fastest growing form of business ownership.

Cooperative Business owned EQUALLY by a group with common interests

o I.e.: Farms

What is Accounting
1. Gathering financial information or activities of a business or other
organization.
2. Preparing and collecting permanent records (proof of payment, details
of payroll, etc.)
3. Rearranging, summarizing and classifying financial information into a
more usable form.
4. Preparing information reports and summaries for the following reasons.
a. To help management reach decisions
b. To serve the needs of people outside of the company (banks,
etc.)
c. To measure the profitability of the business
5. Establishing controls to promote accuracy and honesty among
employees

2 Types of Accounting
• Financial accounting process of recording and analyzing
information about the financial position of an organization
• Managerial Accounting CEO

Accounting Information System

Owners and managers:
 • Is this business earning enough profit
o Are the selling prices of the products enough?
o To who was cheque 502 issued
o Can we finance a business expansion?
o How much money can we afford for marketing?

Outside Companies and Organizations

o Should I lend money to this business?
o Should I buy in to this business?

Divided into 3 categories

• Routine daily activities: Occurs in the same way generally
everyday
• Periodic accounting activities: Occur at regular interval
• Miscellaneous activities: Cannot be predicted

Roles of Accounting
Accounting Clerk:
 Work is more clerical in Nature
 Ensure transaction are properly recorded
 Making payroll calculations
 Carrying out banking transactions

Why study accounting

o On the job
o In daily life
o Owning your own business
o Complexity of businesses today

Acccounting as a Profession
• (CA) Chartered Accountant
• (CGA) Certified General Accountant
• (CMA) Certified Management Accountant