Unit 1 Introduction of Accounting1
1.1 The Role of Accounting in Business 1
1.1.1 The Nature and Function of
Accounting 2
1.1.2 The Division of Accounting 3
1.2 Accounting Ethics 5
Important Words and Special Terms 6
Exercise 7
Unit 2 Some of Generally Accepted
Accounting Principles 8
2.1 The Monetary Convention 9
2.2 Accrual Basis of Accounting 9
2.2.1 The Cash Basis of
Accounting 10
2.2.2 The Accrual Basis of Accounting 10
2.3 Going Concern 10
2.4 Matching Principle and Revenue
Recognition 11
Important Words and Special Terms 11
Exercise 13
Unit 3 Accounting Equation and
Double-Entry system 15
3.1 Accounting equation 15
3.2 Accounting elements 15
3.3 Accounting elements in the accounting equation 17
3.4 T account 18
3.5 Double-entry System 18
Important Words and Special Terms 18
Exercise 19
Unit 4 Accounting Cycle 21
4.1 Identify transactions to be recorded 21
4.2 Journalizing 30
4.3 Posting from Journal to
Ledger 35
4.4 Preparing Unadjusted Trial