What Is Accounting?
• Three activities
• Who uses
accounting data
The Building Blocks of Accounting
• Ethics in financial reporting
• Generally accepted accounting principles
• Assumptions
The Basic Accounting Equation
• Assets
• Liabilities
• Owner’s equity
Using the Accounting Equation
• Transaction analysis
• Summary of
transactions
Financial Statements
• Income statement
• Owner’s equity statement
• Balance sheet
• Statement of cash
flows