Chapter One Know the basic accounting equation: Assets Liabilities + Stockholders' Equity Be able to work the basic accounting equation in a variety of ways Be able to use the expanded accounting equation Chapter Two Be able to define terms like General Ledger, General Journal, Trial Balance and how they fit into the process of accounting Understand which accounts are assets, liabilities, stockholders' equity, revenues and expenses Review debit and cre dit procedures and normal balances for each account Chapter Three Know how to journalize Prepaids Review all types of Adjusting Entries Know what a contra asset means hapter Four Review worksheets and adjustments Be able to develop financial statements from the worksheet Know how to close out the revenue and expense accounts Understand the accounting cycle. Chapter Five Understand the differences between FOB Shipping Point and FOB Destination and ownership of the goods Know how to journalize purchases and purchases/returns under a perpetual inventory system Be able to develop a multiple-step income statement

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