1. Overall
Overall –
Definitions in Blue throughout the 3 chapters (i.e. the definitions for Block 1 that were the basis for the definitions quiz – about 35% of the exam).
Accounting Equation - Illustration 2-96pg. 68
Account name, definition, category, which financial statement, normal balance
For example, Cash in an Asset on the Balance Sheet with a Debit normal balance
Understanding how the transactions we have completed impact the accounting equation.
6 steps for External Transactions (During the month transactions)
Steps for Internal Transactions (End of month transactions)
Financial Statements and the key accounts (areas) with each statement.
Relationship between statements
Entire Accounting Cycle
The exam consists of 50 multiple choice questions, which means that you will not actually be preparing any of the financial statements or preparing a trial balance as we have done in class or you have done in your Connect homework. Please concentrate on the above items and not on memorizing the formats of the trial balances or financial statements.

2. Chapter 1 Chapter 1 Two functions of accounting
How to measure business activity through Accounting Equation
Financial statements and relationships
Income Statement
Statement of Stockholders’ Equity
Balance Sheet
Cash Flow
Operating
Financing
Investing
Rules of financial Accounting – GAAP and FASB
Auditor responsibility
Management responsibility
Additional study aids
Review – self- study questions pg #’s 2,3,4,5,6,8

3. Chapter 2
Chapter 2
Effects of external transactions on Accounting Equation
Debits and credits for accounting equation
Normal balance
*** Illustration 2-6 pg. 68***
Record journal entry
Post transaction to T account in general ledger
Trial balance (unadjusted) – definition and how it is prepared
Additional study aids
Review – self- study questions pg. 82 – All

4. Chapter 3 Revenue Recognition Principle Matching Principle
Accrual versus cash accounting
Adjusting entries – prepared at the end of an accounting period
Prepaid expenses
Depreciation expense
Accumulated depreciation – contra asset account
Book value
Unearned revenue
Accrued expenses – salaries, interest, etc.
Adjusted trial balance
Financial statements – NOT preparation, just understanding the flow of information, order of preparation, and which accounts belong to which financial statement and normal balances
Income statement
Statement of Stockholders’ Equity
Classified Balance Sheet
Current assets
Current liabilities
Closing entries
Temporary accounts
Permanent accounts
Additional Study Aids
Review – self- study questions pg. 138 – All