FAC Chapter 1

Identify career opportunities in accounting.

Career opportunities in accounting include work in public accounting, private accounting, and governmental and not-for-profit accounting.

Classify different types of businesses by activities.

Different types of businesses classified by activities are a service business, a merchandising business, and a manufacturing business.

Define GAAP and describe the process used by FASB to develop these principles.

Generally accepted accounting principles (GAAP) are the rules that businesses must follow when preparing financial statements.

Describe the purpose of accounting

The purpose of accounting is to provide financial information about a business to individuals and organizations.

Describe the accounting process.

The six major steps of the accounting process are analyzing, recording, classifying, summarizing, reporting, and interpreting.

Define three types of business ownership structures.

Three types of business ownership structures are the sole proprietorship, the partnership, and the corporation.