Career · Video Lesson

What is Accounting?

Accounting is often called the language of business. This lesson introduces what accounting is and why it matters: how revenues and expenses produce net income, the fundamental accounting equation (Assets = Liabilities + Equity), and the difference between financial and managerial accounting — useful for business and for managing your own money.

Grades 9–12 + adult Video Lesson 45–60 minutes Free Lesson

For Teachers

Lesson at a glance

Topic: Career & Money Skills
Grade Level: Grades 9–12 + adult
Resource Type: Video Lesson + Worksheet
Estimated Time: 45–60 minutes
Format: Class discussion + analysis activity
Materials: Video, worksheet, whiteboard, sample financial statement

What Students Learn

Learning objectives

Define accounting and explain its role as the ‘language of business’
Explain how revenues and expenses produce net income
State the fundamental accounting equation: Assets = Liabilities + Equity
Distinguish financial accounting from managerial accounting
Explain how accounting concepts help with personal finance decisions

Video Lesson

Watch: What is Accounting?

Materials

What you’ll need

Internet access for the video
Printed copies of the worksheet quiz (one per student)
A simplified sample financial statement for the activity
Whiteboard or projector

Key Terms

Vocabulary

Accounting: The system of recording, summarizing, and reporting a business’s financial activity.
Revenue: The money a business earns from its goods or services.
Expense: A cost a business incurs to operate.
Net income: Revenue minus expenses — the profit (or loss).
Asset: Something of value that a business owns.
Liability: Something a business owes.
Equity: The owners’ share of the business: assets minus liabilities.
Accounting equation: Assets = Liabilities + Equity.

For Teachers

Lesson plan

Estimated time: one 45–60 minute class period.

Lesson sequence

Introduction (5 min). Ask what students think accounting is and why it matters; record ideas.
Watch the video (15 min). Play the lesson video. Ask students to note the accounting equation and the two main types of accounting.
Core concepts (12 min). Cover revenues and expenses → net income; assets, liabilities, and equity; the equation Assets = Liabilities + Equity; and financial vs. managerial accounting.
Activity — read a statement (15 min). Groups analyze a simplified financial statement: identify revenue, expenses, net income, and how the accounting equation balances, then present.
Quiz (8 min). Students complete the printable quiz; the answer key is included for teacher use.

Assessment

Assess participation, the statement analysis, and the printable quiz.

Discussion

Discussion questions

Why is accounting called the ‘language of business’?
How do revenues and expenses determine whether a business is profitable?
Can you explain the accounting equation, Assets = Liabilities + Equity?
What is the difference between financial and managerial accounting?
How could understanding accounting help you manage your own money?

Printable Quiz