Title Chap01_Introduction-to-Financial-Accounting.pdf ✅

Frank Wood’s Business Accounting 1 1
After finishing this chapter, you should be able to:  Explain what accounting is about  Briefly describe the history of accounting  Explain the relationship between bookkeeping and accounting  List the main users of accounting information and what accounting information they are interested in 2
 Present and explain the accounting equation  Explain the relationship between the accounting equation and the layout of the statement of financial position (balance sheet)  Explain the meaning of the terms assets, capital, liabilities, accounts receivable (debtors) and accounts payable (creditors) 3
 Describe how accounting transactions affect the items in the accounting equation  Draw up statements of financial position after different accounting transactions have occurred 4