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