Basic Accounting Principles and Concepts

• Identify the four basic accounting reports.
• Analyze transactions using the rules of debit and credit.
• Post journal entries to the general ledger.

Starting the Accounting Cycle

• Differentiate between accrual basis and cash basis accounting.
• Calculate adjusting entries.
• Prepare an adjusted trial balance.

Completing the Accounting Cycle

• Prepare a financial statement worksheet.
• Prepare classified income statements and balance sheets, and the statement of retained earnings.
• Prepare closing entries, reversing entries, and a post-closing trial balance.

Inventory

• Analyze the impact of elements in the cost of goods sold calculation.
• Record the transactions that involve the purchase and sale of merchandise.
• Calculate ending inventory value using the Last In, First Out (LIFO), First In, First Out (FIFO), and average cost methods.
• Examine the impact of inventory valuation methods on net income or net loss.

Internal Controls

• Summarize strengths and weaknesses of an internal control system.
• Recommend improvements to internal control systems.
• Prepare a bank reconciliation.