This chapter introduces fundamental accounting concepts including the principles of accounting, the accounting equation, and double-entry bookkeeping system. It discusses how accounting involves recording and reporting financial transactions according to generally accepted accounting principles (GAAP) to provide useful information to stakeholders like owners, investors, and creditors. Specifically, it outlines the business entity, going concern, accounting period, and cost concepts, and how the accounting equation (assets = liabilities + equity) and double-entry bookkeeping system work to ensure accuracy. In conclusion, accounting provides essential information for making informed business decisions.