1) Define accounting. Chapter 1 2) What is the accounting equation? Define assets, liabilities and stockholder's equity. Chapter 1 3) Define and discuss the 3 basic forms of ownership: sole proprietorship, partnership corporation. Chapter 1 4) What is the net income formula? Chapter 1 Define revenues and expenses. 5) Calculate current ratio and working capital. (Chapter 2) 6) Define current assets. What accounts are current assets? (Chapter 2) 7) What are the 3 things that affect retained earnings? (Hint: What is the retained earnings formula?) 8) Compare and contrast Cash vs. Accrual Basis Accounting, specifically, when are revenue and expenses recorded under each? 9) What is the Balance Sheet formula? Is the balance sheet prepared for a period of time or at a point in time? 10) List the 3 parts of the T-account & be able to calculate the balance in an account (Chapter 2). Define debit and credit? 11) What are the 9 steps of the accounting cycle? Chapter 3 12) Journalize the collection of revenue in advance. Chapter 3 13) 4 Why do we make adjusting entries? Chapter 4 14) Journalize adjustments Chapter 4 a. HINT: (4 types of adjusting entries and the basic entry format) 15) What are the closing entries? What are permanent accounts? What are temporary accounts? Chapter 4 16) 5 Calculate gross profit. Define net sales, gross profit. How is net sales calculated? Chapter 5 17) Journalize sale of inventory (2 journal entries, one for the sale, one for COGS & Inventory, look back to Chapter 5 homework for journal entries) 18) Calculate inventory turnover. (Chapter 5) 19) What does FOB mean? What does FOB shipping point mean? FOB destination? Chapter 5 & 6