Unit 1 Accounting concepts Unit overview
Resources Magazines, talking to parents and family members, websites
Teaching guidelines • When teaching the accounting concepts, let the learners paste or draw pictures of the concepts in their work books; for example, when explaining assets, get them to find or draw pictures of vehicles, buildings, cash, and so on.
• Understanding accounting concepts is the foundation of accounting, so make sure learners understand and can differentiate between the various concepts.
• It is important for the learners to know that assets and liabilities can be current and non-current. Use time-based examples to help them understand these concepts.
• For the learners to draw up a statement of net worth it is important that they are familiar with the concepts required to draw up a statement of net worth, so make sure they grasp these concepts.
Background knowledge The learners must know the difference between a need and a want.
Vocabulary • asset: anything belonging to a person or business • budget: a plan of how much money a person or business will have and how it will be spent
• balance sheet: summary of the financial position of a business on a specific date • capital: the money that a business owner has to spend on starting and running a business
• creditor: a person or business to whom money is owed • current asset: cash belonging to a person or business or any other possession easily converted to cash within twelve months
• current liability: an amount owed to another person or business that must be paid back within twelve months
• debtor: a person or business who owes money to another person or business • expenses: payments made for goods and services required by a person or business • fixed asset: a possession of a person or business that is not easily converted to cash, has a relatively long lifespan, was not bought to be resold, and assists in generating income for the business
• income: money earned (salary, wages) by a person or received (receipts) from the running of a business
• liability: amount owed to another person or business Unit 1: Accounting concepts
9780199052050_OS_Economics_7_TG_CAPS2017.indb 43 43 11/29/17 9:02 AM
Learner’s Book pages 48–56
This unit focuses on the language of accounting. Concepts such as capital, assets, liabilities, income, expenses, profit, and loss are explained. This unit also looks at budgets and saving, as well as banking, financial records, and transactions.
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