Financial Accounting: study guide and practice
Also known as: acct 201, acct 2301, acg 2021, acct 101, acc 201, acct 2010, principles of accounting i, accounting principles i, intro to financial accounting, accounting 1
What you will be able to do
- Apply the accounting equation and describe the four financial statements
- Record transactions with debits and credits and prepare a trial balance
- Prepare adjusting entries for accruals and deferrals
- Account for merchandising sales and cost of goods sold
- Compare FIFO, LIFO and weighted-average inventory methods
- Estimate uncollectible receivables with the allowance method
- Calculate depreciation and record disposals of long-term assets
- Explain liabilities, equity and the statement of cash flows
Topics
- The accounting equation and financial statementsAssets equal liabilities plus equity. See how transactions change the equation and how the four statements report them.
- Debits, credits and journal entriesThe mechanics of double entry: normal balances, journalising transactions, posting and the trial balance.
- Adjusting entriesAccruals and deferrals: updating accounts at period end so that revenues and expenses land in the right period.
- Merchandising operationsHow a business that sells goods reports sales, returns, discounts, cost of goods sold and gross profit.
- Inventory costing methodsHow FIFO, LIFO and weighted average assign cost between goods sold and ending inventory, and why prices matter.
- Receivables and bad debtsAccounting for customer credit: the allowance method, write-offs, aging, notes and turnover.
- Long-term assets and depreciationWhat goes into an asset's cost, three depreciation methods, book value and gains or losses on disposal.
- Liabilities, equity and cash flowsCurrent and long-term liabilities, how retained earnings roll forward, and how the cash flow statement is organised.