Study Guide to accompany Financial Accounting [antikvár]

1 Accounting, an Introduction to its Concepts Introduction to Chapter 1 This chapter discusses the work done by accountants. Even if you don't plan to become an accountant, the study of accounting is important. Accounting is the language of business. After discussing the work of the accountant, the chapter introduces two financial statements: the income statement and the balance sheet. These statements represent the end product of the work done by accountants. Chapter 1 begins your study of how the accountant translates business transactions into accounting statements. Be su re you are comfortable with the subject matter of this chapter before you study Chapter 2. You should pay special attention to the new words that are introduced. Many students overlook the importance of the accounting equation which is introduced in this chapter. This equation is the foundation of our accounting system. If you do not understand its importance after studying the chapter, you will want to discuss it during your class session.