Introduction to Accounting

Identify the activities and users associated with accounting.

Explain the building blocks of accounting: ethics, principles, and assumptions.

State the accounting equation, and define its components.

Analyze the effects of business transactions on the accounting equation.

Describe the four financial statements and how they are prepared.

Explain the career opportunities in accounting.

Owners of business firms are the only people who need accounting information.

• True

• False

Transactions that can be measured in monetary units are recorded in the financial information system.

• True

• False

The hiring of a new company president is an economic event recorded by the financial information system.

• True

• False

Management of a business enterprise is the major external user of information.

• True

• False