Economic Accounting and Fiscal Decisions
1-1 Satisfying Needs and Wants
1-2 Economic Choices
1-3 Economic Systems
1-4 Supply and Demand
Explain the difference between needs and wants.
Distinguish between goods and services.
Cutting Losses After Lack of Financial Planning
Define the problem.
Identify the choices.
Evaluate the advantages and disadvantages of each choice.
Act on your choice.
Review your decision.
Profit and Loss in Capitalism
Private ownership of resources by individuals, rather than by the government
Also known as:
THE U.S. ECONOMIC SYSTEM PRINCIPLES
The Accounting Equation
Accounting-planning, recording, analyzing, and interpreting financial information
Accounting system-a planned process for providing financial information that will
be useful to management
Accounting records-organized s
Using T Accounts
ANALYZING THE ACCOUNTING EQUATION
INCREASES AND DECREASES IN ACCOUNTS
T account-an accounting device used to analyze transactions
Debit-an amount recorded on the left side
General Journal to General Ledger
Posting from a General Journal to a General Ledger
POSTING AN AMOUNT FROM THE DEBIT COLUMN OF A GENERAL JOURNAL
POSTING AN AMOUNT FROM THE CREDIT COLUMN OF A GENERAL JOURNAL
POSTING A DEBIT AMOUNT TO AN ACCOU
Cash Flow Sheet
What are your expenses?
Before you do anything else, ask yourself, how much will my business cost?
What items will I need to begin?
Think about starting your own buffet restaurant
you will need a building, food, kitchen equipmen
Financing Your Business
Bootstrapping: Operating a business as frugally as possible and cutting all unnecessary expenses.
Cash raised for a business in exchange for an ownership stake in the business
You will identify forms of business growth
You will determine the form of growth best suited for your organization
You will apply the form and subsection to your business plan.
Growth is the natural by-product of succes
LIFO and FIFO Accounting
What is this type of insurance
Insurance purchased for cars, trucks, motorcycles, and other road vehicles.
Its primary use is to provide financial protection against physical damage and/or bodily
injury resulting from t
Corporate Accounting and Accrual Accounting
Insurance is created when people like you and your neighbors pool their resources to
protect themselves from loss
If the risk of loss can be spread over a large enough group, the effects of the loss t
Flying horse, symbol of the Ch'llima
production drives of the late 1950s; the
slogans proclaim self-reliance and three
THE DEMOCRATIC PEOPLE'S
REPUBLIC OF KOREA (DPRK, or North
Korea) possesses extensive economic
resources with which to build
Custom Based Economy
In 1972, the worst drought in 50 years struck the Sahara, bringing disaster and severe
stress to the Tuareg. The nomads were forced to travel southward with their families in
search of pastures for their herds. This massive migration
Two of the four principles of our economy are Competition and Freedom of Choice.
Every day you use products that you choose (freedom of choice) and that are produced by
companies that are in competition with other companies.
List 10 comp
Type of Economy
Three Economic Questions
What g/s are to be
How the g/s should be
Directions: Who/what answers the economic questions?
For whom the g/s
should be produced
Surplus: An amount or quantity greater than needed.
Shortage: A lack of something. Not enough of something.
Equilibrium: When something is balanced.
The Morality of Marketing the Marlboro Man
By Claire Andre and Manuel Velasquez
Images of sleek, young bodies, taut and tanned, engaged in heroic athletic feats illuminate
the page on which the words "Performance Counts" loom large. But appearing in a sma
Please rate these in order of ethics and responsibility. (1=most morally wrong and 20= the least) Try to think
of at least one company or product that does the following.
Nicotine levels in Tobacco - addiction?
Caffeine levels in Coke - a
Teaching the Class Project
1. Visual and Audio Presentation
Must cover all material assigned
All students must speak during presentation
Must include graph or chart
Relate material to the real world
Dress for Success(when you present)
o You will have
Savings and Investments
Define the following saving and investing terms
Bank Savings accounts
Certificates of deposit-
Money market funds-
US savings Bonds-
US Treasury Securities-
Total Interest Paid over 30 YRS @ 3.75
Taxes per Month
Total Interest Paid over 30 YRS @ 5.5
Taxes per Month
House and Mortgage Search
1. Go onto Zillow.com
2. Look for a home with the specifications you want in the town and state you want to live
(Make sure you can afford the house based on the information you researched about your
3. Print out house in
Pre-approved- offers are mailed to your home because you meet the risk criteria of the company
making the offer.
Basic APR- an annual percentage rate of interest a credit card holder will be charged on all or a
portion of the balance if the full amount is
Identify the reasons to use credit.
Explain the difference between a debtor
and a creditor.
Compare and contrast the different types
of consumer credit.
! Iden0y the reasons to use credit.
! Explain the dierence between a debtor and a
! Compare and contrast the dierent types of