Identify the qualitative characteristics of financial reporting and apply the basic
assumptions, principles, and conventions underlying generally accepted accounting
principles.
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
accounts.
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
allowance method.
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.
Identify the major types of current liabilities and describe the accounting treatment
for each.
Describe the major characteristics of corporate bonds and apply the time value of
money concepts to determine bond issue prices.
Identify the acquisition costs of long-term assets, demonstrate methods of depreciating
these assets, and describe how to account for the sell or disposal of long-term assets.
Explain the accounts and concepts associated with the stockholders’ equity section
of a corporate balance sheet.
Discuss the classification of cash flows and the types of inflows and outflows associated
with each of the classifications.
Describe the major characteristics of corporations and explain the effects of stock
transactions on the accounting equation.