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HFT 2401 Financial Accounting
Exam 1 Review
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Chapter 1 Definitions of accounting principles Cost Principle
Business Entity Continuity of the Business Unit (Going Concern) Unit of Measurement Objective Evidence Full Disclosure Consistency Matching Conservatism Materiality
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Chapter 1 Fundamental Accounting Equation
Assets = Liabilities + Equity Assets – Liabilities = Equity Assets – Equity = Liabilities Equity = Permanent + Temporary Owners Equity Temporary Owners Equity = Revenue - Expenses
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Chapter 1 Advantages & Disadvantages of: Sole Proprietorship
Partnership Corporation S Corporation
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Chapter 2 Debit vs. Credit (Left vs. Right)
Types of accounts and their definitions – Asset, Liability, Equity, Revenue, Expense (See pp ) Normal Balances Assets – Increase by debit, decrease by credit Liability & Equity - Increase by credit, decrease by debit Trial Balance
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Chapter 3 What is an adjusting entry? Definition of depreciation
Accrual vs. cash basis accounting Definition of an accrual entry vs. a deferral entry Effects on financial statements for failing to prepare entries (see chart on p 89)
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Chapter 3 Accrual Entries – Relationships
Asset & Revenue Liability & Expense Add Deferral Entries – Relationships Asset & Expense Liability & Revenue Delay
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Chapter 4 Complete a trial balance worksheet with adjustments
Closing Account Balances to Income Summary Posting Adjusting Entries and Completing a Worksheet with Post Closing Trial Balance (See handout problem)
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Final Note Bring a calculator!!! No cell phones. Scantrons required
Brown form #2052 Bring pencils Questions?
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