Topic 2 - Fundamentals of Accounting

Part 1: To answer the following questions:

1. What three- step guidelines can help people make ethical decisions?
2. Why are ethics and social responsibility valuable to organizations?
3. Why are ethics crucial in accounting?
4. Who sets U.S. accounting rules?
5. How are U.S companies affected by international accounting standards?
6. How are the objectivity concept and cost principle related?
7. Why is the business entity assumption important?
8. Why is the revenue recognition principle important?
9. What are the three basic forms of business organization?

10.Identify the owners of corporations and the terminology for ownership units.