In Unit 1 we covered the entire accounting cycle and the foundation of accounting in:

• Chapter 1 - The Role of Accounting in Society
• Chapter 2 - Introduction to Financial Statements
• Chapter 3 - Analyzing and Recording Transactions
• Chapter 4 - The Adjustment Process
• Chapter 5 - Completing the Accounting Cycle
• Chapter 7 - Accounting Information Systems

Specifically in Chapter 3 - Analyzing and Recording Transactions we learned about the principles, assumptions, and concepts of accounting. Also, in Chapter 5 - Completing the Accounting Cycle we learned about all of the steps in the accounting cycle.

Prompt:

There are two (2) options for the Unit 1 Project:

1. Choose one (1) of the principles, assumptions, or concepts described in chapter 3 and determine which one is important for generally accepted accounting principles (GAAP). OR
2. Choose one (1) of the steps of the accounting cycle in chapter 5 and determine which one has the greatest effect on our financial statements.