Class Notes for Financial Accounting, 10th Edition
Class Notes for Financial Accounting, 10th Edition makes studying easier with well-organized, concise notes.
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Chapter 1: The Financial Statements
Learning Objectives
1. Explain why accounting is the language of business
2. Explain and apply underlying accounting concepts, assumptions, and principles
3. Apply the accounting equation to business organizations
4. Evaluate business operations through the financial statements
5. Construct financial statements and analyze the relationships among them
6. Evaluate business decisions ethically
Questions You Should Be Able To Answer
Learning Objective Question(s) Answer For practice
1. Explain why
accounting is
the language of
business
Why is accounting
considered the language of
business?
What are the ways
businesses can be
organized?
Accounting
communicates
economic
information. The
better you
understand
accounting, the
better you can
understand and
communicate in
business terms.
Proprietorship: sole
owner with personal
liability
Partnership: more
than one owner,
often with personal
liability
Corporation: more
than one owner, with
limited liability
S1-7, S1-8, S1-9
S1-3
2. Explain and
apply
underlying
concepts,
assumptions
and principles
of accounting
Explain the following
concepts, assumptions, and
principles:
(1) Entity assumption
(2) Continuity
assumption
(3) Historical cost
principle
(1) Each organization
is separate
(2) Entity will
remain in business
(3) Assets recorded
at actual cost
S1-4, S1-5,
S1-15
Chapter 1: The Financial Statements
Learning Objectives
1. Explain why accounting is the language of business
2. Explain and apply underlying accounting concepts, assumptions, and principles
3. Apply the accounting equation to business organizations
4. Evaluate business operations through the financial statements
5. Construct financial statements and analyze the relationships among them
6. Evaluate business decisions ethically
Questions You Should Be Able To Answer
Learning Objective Question(s) Answer For practice
1. Explain why
accounting is
the language of
business
Why is accounting
considered the language of
business?
What are the ways
businesses can be
organized?
Accounting
communicates
economic
information. The
better you
understand
accounting, the
better you can
understand and
communicate in
business terms.
Proprietorship: sole
owner with personal
liability
Partnership: more
than one owner,
often with personal
liability
Corporation: more
than one owner, with
limited liability
S1-7, S1-8, S1-9
S1-3
2. Explain and
apply
underlying
concepts,
assumptions
and principles
of accounting
Explain the following
concepts, assumptions, and
principles:
(1) Entity assumption
(2) Continuity
assumption
(3) Historical cost
principle
(1) Each organization
is separate
(2) Entity will
remain in business
(3) Assets recorded
at actual cost
S1-4, S1-5,
S1-15
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Subject
Physics