Learning Objectives Questions Brief Exercises Do It! Exercises Problems 1. Identify the activities and users associated with accounting. 1, 2, 3, 4, 5 1 1, 2 2. Explain the building blocks of accounting: ethics, principles, and assumptions. 6, 7, 8, 9, 10 2 3, 4 3. State the accounting equation, and define its components. 11, 12, 13, 22 1, 2, 3, 4, 5, 6 3 5 1 4. Analyze the effects of business transactions on the accounting equation. 14, 15, 16, 18 7, 8, 9 4 6, 7, 8 1, 2, 4, 5 5. Describe the five financial statements and how they are prepared. 17, 19, 20, 21 10, 11 5 9, 10, 11, 12, 13, 14, 15, 16, 17, 18 2, 3, 4, 5