1. 1-1 CHAPTER 1 INTRODUCTION TO ACCOUNTING

2. 1-2 LEARNING OBJECTIVE 1 DESCRIBE THE PURPOSE OF ACCOUNTING.

3. 1-3 THE PURPOSE OF ACCOUNTING  FINANCIAL INFORMATION ABOUT THE CURRENT OPERATIONS AND FINANCIAL CONDITION OF A BUSINESS TO INDIVIDUALS AND ORGANIZATIONS  Keep track of and present financial info $$$$$$$$ TO PROVIDE:

4. 1-4 WHO ARE THE USERS OF ACCOUNTING INFORMATION?  Anyone who cares about keeping track of $

5. 1-5 LEARNING OBJECTIVE 2 DESCRIBE THE ACCOUNTING PROCESS.

6. 1-6 THE ACCOUNTING PROCESS  GATHERING FINANCIAL INFORMATION ABOUT A BUSINESS AND REPORTING THIS INFORMATION TO USERS ACCOUNTING IS A SYSTEM OF:

7. 1-7 STEP ONE ANALYZING LOOKING AT EVENTS THAT HAVE TAKEN PLACE AND THINKING ABOUT HOW THEY AFFECT THE BUSINESS

8. 1-8 STEP TWO ENTERING FINANCIAL INFORMATION ABOUT EVENTS INTO THE ACCOUNTING SYSTEM RECORDING

9. 1-9 STEP THREE SORTING AND GROUPING SIMILAR ITEMS TOGETHER RATHER THAN MERELY KEEPING A SIMPLE, DIARY- LIKE RECORD OF NUMEROUS EVENTS CLASSIFYING

10. 1-10 STEP FOUR THE AGGREGATION OF MANY SIMILAR EVENTS TO PROVIDE INFORMATION THAT IS EASY TO UNDERSTAND SUMMARIZING

11. 1-11 STEP FIVE TELLING THE RESULTS REPORTING

12. 1-12 STEP SIX DECIDING THE MEANING AND IMPORTANCE OF THE INFORMATION IN VARIOUS REPORTS INTERPRETING

13. 1-13 THE ACCOUNTING PROCESS: SIX MAJOR STEPS ANALYZINGRECORDING

14. 1-14 THE ACCOUNTING PROCESS: SIX MAJOR STEPS SUMMARIZINGCLASSIFYING

15. 1-15 REPORTINGINTERPRETING THE ACCOUNTING PROCESS: SIX MAJOR STEPS

16. 1-16 LEARNING OBJECTIVE 3 DEFINE GAAP AND DESCRIBE THE PROCESS USED BY FASB TO DEVELOP THESE PRINCIPLES.

17. 1-17 GAAP  GENERALLY ACCEPTED ACCOUNTING PRINCIPLES  DEVELOPED BY THE FINANCIAL ACCOUNTING STANDARDS BOARD (FASB)  PROCEDURES AND GUIDELINES TO BE FOLLOWED IN THE ACCOUNTING AND REPORTING PROCESS

18. 1-18 LEARNING OBJECTIVE 4 DEFINE THREE TYPES OF BUSINESS OWNERSHIP STRUCTURES.

19. 1-19 THREE TYPES OF OWNERSHIP STRUCTURES  SOLE PROPRIETORSHIP  PARTNERSHIP  CORPORATION

20. 1-20 SOLE PROPRIETORSHIP  ONE OWNER  OWNER ASSUMES ALL RISK  OWNER MAKES ALL DECISIONS

21. 1-21 PARTNERSHIP  TWO OR MORE PARTNERS  PARTNERS SHARE RISKS  PARTNERS MAY DISAGREE ON HOW TO RUN THE BUSINESS

22. 1-22 CORPORATION  STOCKHOLDERS  STOCKHOLDERS HAVE LIMITED RISK  STOCKHOLDERS MAY HAVE LITTLE INFLUENCE ON BUSINESS DECISIONS  http://www.citmedialaw.org/legal- guide/forming-corporation-california http://www.citmedialaw.org/legal- guide/forming-corporation-california

23. 1-23 LEARNING OBJECTIVE 5 CLASSIFY DIFFERENT TYPES OF BUSINESSES BY ACTIVITIES.

24. 1-24 TYPES OF BUSINESSES  SERVICE BUSINESS  MERCHANDISING BUSINESS  MANUFACTURING BUSINESS

25. 1-25 SERVICE BUSINESS A BUSINESS THAT PROVIDES A SERVICE TRAVEL AGENCY COMPUTER CONSULTANT PHYSICIAN

26. 1-26 MERCHANDISING BUSINESS A BUSINESS THAT BUYS A PRODUCT FROM ANOTHER BUSINESS TO SELL TO CUSTOMERS DEPARTMENT STORE PHARMACY JEWELRY STORE

27. 1-27 MANUFACTURING BUSINESS A BUSINESS THAT MAKES A PRODUCT TO SELL AUTOMOBILE MANUFACTURER FURNITURE MAKER TOY FACTORY