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.

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. 33 - #’s 2,3,4,5,6,8

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

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