1. Accounting and Bookkeeping
   1. Accounting: identifying, measuring, and communicating information to permit informed judgements and decisions
   2. Bookkeeping: identifying and measuring the economic information of accounting
2. Accounting Cycle
   1. 1. obtain information about external transactions from source documents
   2. 2. analyze transactions
   3. 3. Record the transactions in a journal
   4. 4. Post from the journal to the general ledger accounts
   5. 5. Prepare an unadjusted trial balance
   6. 6. Record adjusting entries and post to the general ledger accounts.
   7. 7. Prepare an adjusted trial balance.
   8. 8. Prepare financial statements
   9. 9. close the temporary accounts to retained earnings
   10. 10. Prepare and post-closing trial balance
3. Coding System
   1. Sequential Coding: Numbers/items in a sequence
      1. Topic
   2. Block Coding: numbers are assigned in blocks
   3. Hierarchical coding: each digit conveys imp. info. to people who know the code
   4. Mnemonic coding: help people remember the meaning of the code
4. Human Judgement and Information Technology
   1. Designing source documents
   2. Recognizing recordable transactions
   3. Estimating amounts and interpreting accounting rules