Unit 6: The Accounting Equation

USA

This unit discusses the vitally important accounting equation: Assets = Liabilities + Owner's Equity + Revenue - Expenses - Draws.

Did you know? The following activities can be customized as desired by the teacher or school pedagogue.

Basic activities (computer-graded)

Vocabulary Builder Activity

Students will learn the following key terms and phrases:

Reading Activity: The Accounting Equation

Students will be able to correctly answer true/false questions after reading and listening to topical short articles and dialogs featuring topical vocabulary.

Financial accounting is an area which can be explained simply by using the accounting equation, which is assets = liabilities + capital. But what does that really mean? To understand the significance of the equation, first we must explore the meaning of the three words; assets, liabilities and capital. These terms are often used in accounting but can have very different meanings. In general… Continue

Multiple Choice Activity

Students will be able to select the best match between unit terms and their definitions.

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Listening Comprehension Activity

Students will be able to listen to short audio clips in English and then spell them correctly.

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Spelling and Recognition

Students will be able to identify and spell a vocabulary term correctly given only the definition.

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Advanced activities (optionally teacher-graded)

Speaking Practice Activity

Students will be able to speak and record 5 example sentences from the unit vocabulary and then submit them for grading by the classroom teacher. If no teacher is available or desired, then the students will be shown good examples of other students' work.

There is some very complicated terminology in accounting so you should make sure you have a good dictionary.

Many people choose to form a sole proprietorship as it is the simplest form of business entity.

The board of management was delighted with the 15% rise in shareholder equity on the past year.

When entering a new market, you should be able to quantify the potential sales and the risk attached to them.

Lawyers and accountants in Hollywood have to be experienced in intellectual property law.

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Writing Practice Activity

Students will write a short essay to be graded by the teacher. If no teacher is available or desired, then the student is shown previous examples of other writings by students.

Why might intangible assets be hard to quantify?

Why is the accounting equation so important?

What are the typical assets and liabilities connected to a SME?

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