CP ACCOUNTING
Introduction to Accounting
PERFORMANCE OBJECTIVES
1.
2.
3.
4.
Define accounting.
Explain the importance of accounting information.
Describe the various career opportunities in accounting.
Define ethics.
KEY POINTS
1. Accounting is the language of business.
2. The study of accounting gives a person the necessary background and understanding of the scope,
functions, and policies of an organization.
3. Ethics, as it relates to accounting, is the way keepers of financial information conduct the business of
accounting according to laws of the state and their own personal system of morality.
Introduction to Accounting Vocabulary (page 10):
Accountant
Accounting
Economic Unit
Ethics
Financial Accounting Standards Board
(FASB)
Generally Accepted Accounting
Principles (GAAP)
International Accounting Standards Board
(IASB)
International Financial Reporting
Standards (IFRS)
Paraprofessional Accountants
Sarbanes-Oxley Act
Securities & Exchange Commission
(SEC)
Transaction
Chapter 1: Asset, Liability, Owner’s Equity, Revenue and Expense Accounts
PERFORMANCE OBJECTIVES
1. Define and identify asset, liability and owner’s equity accounts.
2. Record, in column form, a group of business transactions involving changes in assets, liabilities and
owner’s equity.
3. Define and identify revenue and expense accounts.
4. Record, in column form, a group of business transactions involving all five elements of the fundamental
accounting equation.
Introduction to Accounting/Chapter 1
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CP ACCOUNTING
KEY POINTS
1. There are five classifications of accounts: assets, liabilities, owner’s equity, revenue and expenses.
2. After each transaction has been recorded, the total of one side of the fundamental accounting
equation must equal the total of the other side.
Chapter 1 Vocabulary (page 36)
Account Numbers
Accounts
Accounts Payable
Accounts Receivable
Assets
Business Entity
Capital
Chart of Accounts
Creditor
Double-entry Accounting
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Equity
Expenses
Fair Market Value
Fundamental Accounting Equation
Liabilities
Owner’s Equity
Revenues
Separate Entity Concept
Sole Proprietorship
Withdrawal
04/10/13