Financial Record Keeping

• Entrepreneurship
• Secondary Education

Do you think the principles of accounting followed by are different?Why?

Chapter 20

Section 1:Financial Record Keeping

Pages 462-470

Objectives

1. Describe the maintenance of records .

2. Compare the terms given

3. Discuss the impact of using different accounting systems

Accounting

Accounting plays a vital role in the day-to-day activities of every

business. Accounting records and reports encourage efficiency and profitability by keeping track of how much is earned and how much is spent.

If all businesses use the same system of recording and reporting
financial information, anyone interested in examining a business’s records will be able to understand its financial reports.U.S. business follow GAAP system.

Activity 1:Write the financial records maintained by you or your parents for the expenses of your family.

What are the different records maintained by a firm?

Why do we need to keep track of our finances early in life?

Differences between journal and journalizing

Activity 2: In pairs compare the difference between journal and journalizing

What is the difference between general journal and journal?

What is the importance of having a general journal and journalising?

What are the 3 things you knew?
What are the 2 things you wish to know?
What is one thing you learnt?

Accounting System 

Accounting principles and procedures are universal. All U.S. businesses, large and small, use the same system, which follows established accounting guidelines called “generally accepted accounting principles,” or GAAP.

https:

Activity 3:In Groups:Why do you think the businesses use the same system recording and reporting financial information?

In groups:What are the disadvantages of having different accounting systems?

Which accounting system is followed by the U.S. businesses?

1. GAAAP
2. GAP
3. AAP
4. GAAP

Which system of accounting is used in Bahrain?Comment on it.

How well did you understand the lesson?

What are the main points of the lesson?