After you have mastered the material in this chapter you will be able to:
Explain the role of accounting in society. |
|
|
|
Distinguish among the different accounting entities involved in business events. |
|
|
|
Name and define the major elements of financial statements. |
|
|
|
Describe the relationships expressed in the accounting equation. |
|
|
|
Record business events in general ledger accounts organized under an accounting equation. |
|
|
|
Explain how the historical cost and reliability concepts affect amounts reported in financial statements. |
|
|
|
Classify business events as asset source, use, or exchange transactions. |
|
|
|
Use general ledger account information to prepare four financial statements. |
|
|
|
Record business events using a horizontal financial statements model. |
|
|
|
Explain the importance of ethics to the accounting profession. |
|
|
|
Identify three types of business organizations and some of the technical terms they use in their real world financial reports. |