Accounting · Lesson Plan
Introduction to Accounting: What Is Accounting?
Accounting is a language — a specialized one that communicates the financial position of any organization. This lesson introduces that language: the three main categories of information organizations track (operating, financial, and managerial), why companies follow Generally Accepted Accounting Principles (GAAP) set by the FASB, and how it all results in financial statements that show a company’s position at a glance. A worksheet with an answer key checks understanding.
For Teachers
Lesson at a glance
- Topic
- Accounting
- Grade Level
- Grades 11–12 / College
- Resource Type
- Lesson + Worksheet
- Estimated Time
- 45–60 minutes
- Format
- Lesson + worksheet + answer key
- Materials
- Printable lesson, worksheet, pencils
What Students Learn
Learning objectives
- Explain why accounting is called the language of business
- Identify the three categories of accounting information
- Describe the role of GAAP and the FASB
- Explain what financial statements communicate
- Distinguish a point-in-time report from a period report
Materials
What you’ll need
- Printed lesson, worksheet, and answer key (one per student)
- Pencils
Key Terms
Vocabulary
- Accounting
- The language that communicates an organization’s financial position.
- Operating information
- Day-to-day data a business needs to run.
- Managerial accounting
- Information used by managers to make decisions.
- GAAP
- Generally Accepted Accounting Principles — the standard rules.
- FASB
- The Financial Accounting Standards Board, which sets GAAP.
- Financial statement
- A report showing a company’s financial position.
For Teachers
Lesson plan
Estimated time: one 45–60 minute class period.
Lesson sequence
- Accounting as a language (12 min). Why financial information is so similar across organizations.
- Three categories (15 min). Operating, financial, and managerial information.
- GAAP & FASB (10 min). Why companies follow standard principles even without a legal requirement.
- Worksheet (13 min). Students complete the worksheet and check against the answer key.
Assessment
Assess the worksheet against the answer key for grasp of the categories, GAAP, and statement types.
Discussion
Discussion questions
- Why is accounting called a language?
- What are the three categories of accounting information?
- What is GAAP, and who sets it?
- Why do companies follow GAAP if there’s no legal requirement?
- What do financial statements let people see?
Printable Lesson, Worksheet & Answer Key
Introduction to Accounting — Worksheet & Answer Key
A printable worksheet with answer key on the foundations of accounting: the three information categories, GAAP/FASB, and financial statements.
Unlock the full Money Instructor library
Members get unlimited access to worksheets, lesson plans, and teacher resources across every financial literacy topic — budgeting, taxes, credit, banking, and more.
More Accounting resources
Browse all Accounting resources →
Transaction Analysis
Students learn the accounting equation and the dual-entry system, then analyze how transactions keep the books in balance.
Lesson · Grades 7–12The Accounting Process
Students follow a transaction through the accounting process and learn how the chart of accounts organizes and numbers every account.
Lesson · Grades 7–12Accrual Accounting & Adjusting Entries
Students learn accrual accounting — the operating cycle, revenue recognition, the matching principle, and the adjusting entries it requires.
Lesson · Grades 7–12