By the end of this section, you will be able to:
- Explain the meaning of the term Generally Accepted Accounting Principles (GAAP).
- Define assets, liabilities, and owner’s equity.
- Describe the causes of change in owners’ equity, specifically: Owner investments, Owner withdrawals, Net income, Net loss
- Explain the effect of various transactions on the accounting equation.
- Prepare a simple: Income Statement, Statement of Owner’s Equity, Balance Sheet