After reading this chapter, you should be able to:

1. Explain the role of accountants and distinguish between the kinds of work done by public and private accountants.
2. Explain how the accounting equation and double-entry accounting are used in record keeping.
3. Describe the three basic financial statements and show how they reflect the activity and financial condition of a business.
4. Explain the key standards and principles for reporting financial statements.
5. Show how computing key financial ratios can help in analyzing the financial strengths of a business.
6. Explain some of the special issues facing accountants at firms that do international business.