exam 1 review

Chapter 2 What is the basic accounting equation and how is it changed? . Define Assets, Liabilities, and Stockholders Equity and which accounts fall into each category and do the accounts have a normal debit or credit balance. . Recordable transactions vs non-recordable transactions . Be able to analyze, record, and summarize transactions that impact the balance sheet Investments by stockholders o Loans from the bank o Supplies purchase (both on account and with cash) o Making payments on account o Purchasing equipment on account and/or with cash o Collecting payments from customers o Deposits from customers . The purpose for the Trial Balance, how it is organized, and how it's created . Debt vs Equity financing; how do you identify it? . Calculate the Current Ratio