Introduction to Financial Accounting

Lesson Title

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.

Educational Use

Curriculum / Instruction

College & Career Readiness Standards (CCRS) Alignment

Level: Adult Education

Grade Level: E (High School)

Subject: Mathematics

Domain:  A-REI

Standards Descriptions:

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.



Material Type

Instructional Material

Practice problems

Learning Goals

The purpose of this lesson is for learners to be able to identify, explain, and prepare the four financial statements


Designers for Learning

Adult Education



Time Required for Lesson

30 minutes

Prior Knowledge

Addition, Subtraction, Multiplication

Required Resources

Computer with Internet access

Lesson Author & License

Lesson Author: Jeff Alger

License: Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0)

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