Study Notes for Accounting 101 Chapters 1-3, Freshman Level
1.What is the objective of most business?
To maximize profits.
2.Who are the normally included as the stakeholders of a business?
Owners, employees, managers, customers, creditors and the government.
3.What is the role of accounting in business?
Accounting is an information system that provides reports to stakeholders about the economic activities and conditions of a business.
4. What three sound principles form the foundation for ethical behavior?
Avoid small ethical lapse.
Focus on your long-term reputation
Expect to suffer personal consequences for holding to an ethical position.
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