1. Describe the nature of business and the role of accounting and ethics in business. 2. Describe generally accepted accounting principles, including the underlying assumptio and principles. 3. State the accounting equation and define each element of the equation. 4. Describe and illustrate how business transactions can be recorded in terms of the resulting change in the elements of the accounting equation. 5. Describe the financial statements of a corporation and explain how they interrelate. 6. Describe and illustrate the use of the ratio of liabilities to stockholders' equity in evaluating a company's financial condition