Chapter 01 – Accounting: The Language of Business
Chapter 01
Accounting: The Language of Business
1. The purpose of accounting is to provide financial information about an economic or social
entity.
2. An accounting system is designed to accumulate and classify data about a firm’s financial
affairs and summarize it in the general journal.
3. In a sole proprietorship, the owner is responsible for the debts of the business if the firm is
unable to pay.
