Chapter 1:

What is accounting?

Who are the users of accounting information?

What does the acronym GAAP stand for?

Basic accounting assumptions

What are they? What does each assumption assume?

Basic accounting principles

What are they? Understanding the meaning of each principle

Basic accounting equation and expanded accounting equation

What are they? The definition of each element? How to use accounting equation to solve a missing amount?

Basic financial statements

What is each statement about? What should be reported in each statement?

Chapter 2:

What are transactions?

T-account

Commonly used accounts

Accounts title; type; debit and credit rule; how to balance an account? the normal balance of each type of accounts, etc.

Double-entry accounting

Debits and Credits rules

Accounting cycle

What are the key steps in an accounting cycle? Order of those steps?

You should be able to journalize transactions such as purchasing assets, borrowing money from a bank, earning revenue, paying expenses.

Chapter 3:

Cash-basis accounting and accrual-basis accounting

How accrual-basis accounting differs from cash-basis accounting?

Revenue recognition principle and expense recognition principle

To understand those principles and to apply those principles to determine when to recognize revenue and expense under accrual-basis accounting

Adjusting entries (you will get bonus points if you know adjusting entries)

Financial statements (income statement, statement of retained earnings and balance sheet). Which accounts on which statements.

Accounts need to be closed.

Meaning of ratios