Lesson 16: Difference between Sole Proprietorship and Corporate Accounting Records
Duration of Days: 2
Lesson Objective
Analyze the difference between a chart of accounts for a merchandising business organized as a corporation and a service businesses' chart of accounts.
What do you as the differences between the two charts of accounts?
Chart of Accounts
CTE Business & Finance Technology
D. Financial Reports: Develop an understanding and working knowledge of financial statements.
18. Describe the users and uses of financial information.
HS.CTE.2A - 2A. Recall and apply prior knowledge for intended purpose.
The SAT measures student proficiency in math reading, language, and writing. With strong scores, accounting students set themselves up for successful entry into accounting and finance programs
Description: lesson will explore the differences between chart of accounts for merchandising and service businesses, highlighting the unique accounts needed to track inventory and cost of goods sold in merchandising businesses
Purpose: comparison will help students understand how different types of businesses use distinct account categories to reflect their specific financial activities and operational needs
DOK 1
List the main components of a chart of accounts for a service business.
Identify three key differences between the chart of accounts for a service business and a merchandising business.
Define what a chart of accounts is in the context of accounting.
DOK 2:
Classify accounts from a given list into either a service business or merchandising business chart of accounts
In a merchandising business, the chart of accounts provides a systematic way to categorize and organize financial transactions related to inventory, sales, and cost of goods sold.
Assumption that every business, regardless of its type or industry, uses the same chart of accounts
Sampling, modeling, one one instruction, Google classroom or Moodle. Paper or or online assignments, online instructional tools, videos, textbook or online textbook, excel real world application of information, Spanish version available for ELL students
Analysis of a Chart of Accounts between a service business and a merchandise business organized as a corporation
Century 21, Accounting, General Journal, 11th edition, online/paper edition.
Online working papers (Mindtap)
Microsoft Excel software
Online instructional tools