Chapter #1 Learning Objectives

Define accounting, and explain the concepts underlying accounting measurement.

Define financial position, and state the accounting equation.

Identify the four basic financial statements.

Explain how generally accepted accounting principles ( GAAP) and international financial reporting standards ( IFRS) relate to financial statements and the independent CPA’s report, and identify the organizations that influence GAAP.

Identify the users of accounting information, and identify business goals, activities, and performance measures.

Explain the importance of ethics in financial reporting.