Explain what accounting is. Identify the users and uses of accounting. Explain the following assumptions: monetary unit, economic entity, going concern, and time period/perodicity. Explain the following principles: cost, matching, revenue recognition and materiality State the accounting equation and define its components. Analyze the effects of business transactions on the accounting equation. Understand the four financial statements and how they are prepared. Explain what an account is and how it helps in the recording process