Accounting · Lesson Plan

The Accounting Process

Accounting is a process — a prescribed series of steps for recording and reporting the balances in a business’s accounts. This lesson follows a transaction through the system: how it affects at least two accounts, where those accounts live in the chart of accounts, and how the chart is numbered by type (asset, liability, equity, revenue, expense). It connects the accounting equation to real record-keeping.

Grades 11–12 / College Lesson Plan 45–60 minutes Free Lesson Plan Lesson & Worksheet: Full Membership

The accounting process lesson illustration

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
Materials: Printable lesson, worksheet, calculator

What Students Learn

Learning objectives

Describe accounting as a step-by-step process
Trace a transaction through the accounts it affects
Explain the chart of accounts
Identify how accounts are numbered by type
Connect record-keeping to the accounting equation

Materials

What you’ll need

Printed lesson and worksheet (one per student)
Calculator
Pencils

Key Terms

Vocabulary

Accounting process: The prescribed steps for recording and reporting balances.
Chart of accounts: The list of all accounts an entity uses.
Account: A record of a specific asset, liability, equity, revenue, or expense.
Asset accounts: Numbered 101–199 in the chart of accounts.
Liability accounts: Numbered 200–299 in the chart of accounts.
Balance: The running total in an account.

For Teachers

Lesson plan

Estimated time: one 45–60 minute class period.

Lesson sequence

A process (10 min). Accounting as a prescribed series of steps.
Trace a transaction (15 min). Work the Tom’s Plumbing truck example across three accounts.
Chart of accounts (15 min). How accounts are grouped and numbered by type.
Worksheet (15 min). Students record transactions and place accounts in the chart.

Assessment

Assess the worksheet for correctly recorded transactions and properly classified accounts.

Discussion

Discussion questions

Why is accounting called a process?
How many accounts does a single transaction affect, and why?
What is the chart of accounts?
How are accounts numbered?
How does the accounting process keep the equation balanced?

Printable Lesson & Worksheet