Justin Garcia
Professor Lucy Xie
Intermediate Accounting I
31 August 2015
Chapter 1 Summary
This chapter serves as a review of the material to refresh the mind in order to dive deeper
into the concepts of the semester. It focuses on the major financial statements that are used in
accounting, how accounting assists in the allocation of resources, and what are generally
accepted accounting principles (GAAP) and who decides what they are?
Financial Accounting is the process of creating financial documents for use by both
internal and external parties in making financial decisions. These financial documents are
