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ACCOUNTING TRANSACTIONS LESSON PLAN ONLINE FINANCIAL BASICS CORE CONVENTION HIGH SCHOOL BUSINESS TEACHING LEARNING FORMAT SAMPLE EXAMPLE HELP FORMAL WORK CAREERS SAMPLE STUDENTS FREE PRACTICE TEACHER BUSINESS LIFE SKILLS

 

 

 

Students learn an introduction to the basic accounting equation.

 

 

ACCOUNTING LESSON PLAN:
INTRODUCTION TO TRANSACTION ANALYSIS

Topic:  Accounting Transaction Analysis

Concept:    Using the fundamental accounting equation, understand how to analyze basic business transactions.

Objectives

  1. Know the fundamental accounting equation
  2. Understand the components of the accounting equation (Assets, Liabilities, Owner’s Equity) and provide examples of each
  3. Understand the expanded equation (Revenues, Expenses, Drawings/Dividends)
  4. Given details of a business transaction, identify changes to the accounting equation.

Suggested Grades:

Seventh Grade - Eighth Grade - Ninth Grade - Tenth Grade - Eleventh Grade - Twelfth Grade - Adult Education

 
 

 

TRANSACTION ANALYSIS LESSON PLAN

 

Teaching Materials

 

Lesson Activity

Understanding this part of accounting is critical.  It helps to use as many visual cues as possible as this grounds the lesson and provides concreteness to an otherwise conceptual practice.  Use the overhead projector to draw relationships between the components of the accounting equation and also for solving example problems.

  1. Introduce the Accounting equation – talk about keeping it balanced.
  2. Introduce the three main components.
  3. Have students identify different asset categories.  Discuss and give your own examples.
  4. Have students identify different liability categories.  Discuss and give your own examples.
  5. Discuss the concept of equity – it is the amount the business owes to the owners.
  6. Talk about the mathematical relationship between the components and how the equation can be rearranged three ways.  Have students solve simple problems: when given two values of the equation, solve for the third.
  7. Discuss what a business transaction is.  Recall the objectivity concept and the notion that transactions originate from a source document.
  8. Provide many examples of business transactions and have students identify the changes to the three main components.
  9. Introduce the expanded accounting equation.
  10. Talk about revenues have students discuss different forms of revenue.
  11. Talk about expenses - have students discuss different expense categories.
  12. Using office supplies as an example, discuss the difference between an expense and an asset.
  13. Discuss the difference between a drawing and a dividend but emphasize that the effect on Equity is the same.
  14. Provide many examples of business transactions that involve revenue, expense, and drawing/dividends.

Assessment/Evaluation

Have students complete worksheet. A suggested passing grade is 70% or greater.

 

 

 

Lesson Printable Materials - Worksheets

Print out the teaching lesson pages and exercise worksheets for use with this lesson:

 

ACCOUNTING TRANSACTIONS LESSON

Accounting Transactions Lesson *

This is a lesson on fundamental accounting transactions.

 

 

 

ACCOUNTING WORKSHEET - STUDENT EXERCISE

Accounting Transactions - Equations Worksheet *

Student worksheet based on the above lesson.

 

 

Do you have a recommendation for an enhancement to this accounting lesson, or do you have an idea for a new lesson?  Then leave us a suggestion.

 

 

 

 

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