Chapter 1: Accounting in Action Learning Objective 1: Identify the activities and users associated with accounting. 1. What are the three basic activities of accounting? 2. Users of accounting information can be divided into two groups: Internal and External Users. a. Define internal users and list four examples of internal users. b. Define external users and list four examples of external users. Learning Objective 2: Explain the building blocks of accounting: ethics, principles and assumptions. 1. are generally accepted and universally practiced standards developed by the accounting profession. a. What is the abbreviation for these standards? 2. List and define the two measurement principles. a. b. 3. List and define the two assumptions that provide a foundation for the accounting process. a. b. I 4. List and define the three economic entities discussed in chapter 1. What are the advantages and disadvantages of each of the three entities? a. b. Learning Objective 3: State the accounting equation, and define its components. 1. What is the basic accounting equation? 2. Ust and define the key components of the basic accounting equation. Provide examples of each component. a. b