Introduction to Financial Accounting: Financial Statements
Accounting is the process of identifying, measuring, recording, and communicating an organization’s economic activities to users. Users need information for decision making. With an emphasis on the corporate form of business organization, this lesson will examine how financial transactions are analyzed and then reported using four financial statements: the income statement, statement of changes in equity, balance sheet, and statement of cash flows. This lesson introduces each statement using an example based on a fictitious corporate organization called Big Dog Carworks Corp.
Learner Audience / Primary Users
Adult learners that have or are contemplating starting a business.
Curriculum / Instruction
College & Career Readiness Standards (CCRS) Alignment
Level: Adult Education
Grade Level: E (High School)
A-REI.1 Explain each step in solving a simple equation as following from the equality of numbers asserted at the previous step, starting from the assumption that the original equation has a solution. Construct a viable argument to justify the solution method.
A-REI.3 Solve linear equations and inequalities in one variable, including equations with coefficients represented by letters.
A-REI.6 Solve systems of linear equations exactly and approximately (e.g., with graphs), focusing on pairs of linear equations in two variables.
The purpose of this lesson is for learners to be able to identify, explain, and prepare the four financial statements
Designers for Learning
Time Required for Lesson
Addition, Subtraction, Multiplication
Computer with Internet access
Lesson Author & License
Lesson Author: Jeff Alger