EconEdLink: Understanding a Balance Sheet

Details

Activity Description

In this activity, students learn the components of a balance sheet by working through many problems to strengthen their understanding. Students complete a balance sheet for business by entering the names of the accounts and calculating total assets, liabilities, and net worth. Students then make predictions on how the balance sheet changes when there are changes to assets and liabilities.

EconEdLink has financial literacy lessons written for K–12. They also provide access to the latest economic news and information. Choose Current Events on the "educator" menu to learn more about what is happening in the world of economics and access related lesson plans. Links to economic data resources can also be found on the "educator" menu. Take time to look this one over, including both the educator section and the student section.

 

 

Preparation

1. Make sure that the sites are not blocked at your school.
2. Review the detailed lesson plans and other needed resources.
3. Download the worksheet and template.
4. Make students copies as needed. If possible, download the template to computer desktops.

How-To

1. Introduce the lesson and why it is important.
2. Have students go to the College-Cram.com Web site and study the balance sheet. Students will need to select the To Learn More tab.
3. Have students download or open the template.
4. Discuss the three parts of the balance sheet.
5. Change the components of the balance sheet so that students can see how changes to assets and liabilities affect net worth.
6. Discuss the accounting equation.
7. Check for understanding by having the students complete the Balance Sheet Worksheet

Teacher Tips

If you do not have Microsoft Excel, you can download Open Office for free or use Google Docs spreadsheet program.

More Ways

Browse EconEdlink online economic and personal finance lessons by Lesson Type, Concept, Standard, Grade, Interactive Resource, Author, or Word Search.

Program Areas

• ASE: High School Diploma
• ABE: Adult Basic Education
• ASE: High School Equivalency Preparation

Levels

• High

Documents

• Understanding a Balance Sheet.png - Screenshot of the Understanding a Balance Sheet lesson

Subjects

• Electives
  • Career Exploration
• Math
  • Whole Number Skills
• Mathematics
  • Numbers and Operations on Numbers
• Social Studies
  • Economics

Standards

• Operations and Algebraic Thinking
  • 1.OA.2 - Represent and solve problems involving addition and subtraction.
  • 1.OA.3-4 - Understand and apply properties of operations and the relationship between addition and subtraction.
  • 1.OA.7-8 - Work with addition and subtraction.
• Measurement and Data
  • 2.MD.10, 3.MD.3 - Represent and interpret data.

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