Identify the qualitative characteristics of financial reporting and apply the basic
assumptions, principles, and conventions underlying generally accepted accounting
Explain the differences between corporations, partnerships, and proprietorships.
Classify accounts into the appropriate categories: asset, liability, stockholders’
equity, revenue, or expense.
Distinguish permanent from temporary accounts, and determine the normal balance of
State the steps in the accounting cycle and apply the accounting cycle to service
firms including: journalizing, posting, adjusting entries, financial statements, closing
entries, and reversing entries.
Distinguish between accrual accounting and cash basis accounting.
Demonstrate the accounting for simple merchandising transactions.
Distinguish between cash, cash equivalents, and short-term investments and explain
accounting principles for each.
Perform the calculations to determine losses for uncollectible accounts under the
Calculate interest, maturity value, and the maturity date of short-term notes receivable.
Distinguish between inventory systems, costing methods, and valuation.
Determine the cost of inventory under various cost flow assumptions.