(SO 1) Indicate whether each of the following statements is true or false.
(a) _T_ Generally accepted means that these principles must have substantial
(b) _F_ Substantial authoritative support for
Chapter 1 Outline
Study Objective 1 - Describe the Primary Forms of Business Organization
A business may be organized as a sole proprietorship, partnership, or corporation.
Sole proprietorship - a business owned by one person
simple to establ
Chapter 2 Outline
Study Objective 1 - Identify the Sections of a Classified Balance Sheet
In a classified balance sheet companies often group similar assets and similar liabilities
together as they have similar economic characteristics. The groupings help
Chapter 3 Outline
Study Objective 1 - Analyze the Effect of Business Transactions on the Basic
Accounting Information System
collects and processes transactions.
communicates financial information to decision makers.
Factors that sha
Chapter 4 Outline
Study Objective 1 - Explain the Revenue Recognition Principle and the Matching
Determining the amount of revenues and expenses to report in a given accounting
period can be difficult.
Proper reporting requires an understanding
Various steps must be included in determining the net income in a multiplestep income