Principles
of
Accounting
1-3
PRINCIPLES OF ACCOUNTING
Objectives:
McGraw-Hill/Irwin
Accounting Fundamentals, 7/e © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
1-4
McGraw-Hill/Irwin
Accounting Fundamentals, 7/e © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
1-6
McGraw-Hill/Irwin
Accounting Fundamentals, 7/e © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
1-7
McGraw-Hill/Irwin
Accounting Fundamentals, 7/e © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
1-8
McGraw-Hill/Irwin
Accounting Fundamentals, 7/e © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
1-9
McGraw-Hill/Irwin
Accounting Fundamentals, 7/e © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
10
Accounting Terminology
•Account •Creditors
•Accounting •Invest
•Accounting Equation •Investment
•Accounts Payable •Liabilities
•Assets •Owner’s Equity
•Balance Sheet •Proprietor
•Business Transactions
McGraw-Hill/Irwin
Accounting Fundamentals, 7/e © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
11
Chapter Summary
Chapter Summary(continued)
Chapter Summary(continued)
Topic Quiz
Answer the following true/false questions:
1. All the properties a business owns are
called assets. TRUE
McGraw-Hill/Irwin
Accounting Fundamentals, 7/e © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
15
McGraw-Hill/Irwin
Accounting Fundamentals, 7/e © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
16
FALSE
It is the financial interest of
the owner in a business.