Help Explaining and Providing Examples of the Following Concepts:

Understand the conceptual differences between an ACCRUED REVENUE or EXPENSE (recording the revenue or expense BEFORE receiving or paying the cash, respectively,) versus a DEFERRED REVENUE or EXPENSE (recording the revenue or expense AFTER receiving or paying the cash, respectively).

Know how to compute the BOOK VALUE of a depreciable asset (COST less ACCUMULATED DEPRECIATION).

Identify the CONTRA-ASSET ACCOUNTS and understand how they work in relationship to their associated asset or liability accounts (i.e., Accumulated Depreciation - Equipment is a contra-account of the Equipment account).

Know the significant components of a CLASSIFIED BALANCE SHEET (CURRENT ASSETS, LONG-TERM INVESTMENTS, PLANT ASSETS, INTANGIBLE ASSETS, CURRENT LIABILITITIES, LONG-TERM LIABILITIES, and SHAREHOLDERS EQUITY) and which specific asset, liability, and shareholders equity accounts are included within each classification.

Understand the ACCOUNTING CYCLE of a company (i.e., know the specific steps and be able to place in property order the steps of the accounting cycle) and know how to classify assets or liabilities as current or as non-current.

Know how to assess the EFFECTS OF AN ACCOUNTING ERROR on the financial statements.

Know which accounts are TEMPORARY (Income Statement and Dividends Declared accounts) and which are PERMANENT (all Balance Sheet accounts).

Understand the purposes of and know how to journalize a companys CLOSING ENTRIES (all TEMPORARY ACCOUNTS are closed).

Know which accounts are included in a POST-CLOSING TRIAL BALANCE.

Understand the purpose of the PRELIMINARY (UNADJUSTED) TRIAL BALANCE, the FINAL (ADJUSTED) TRIAL BALANCE, and the POST-CLOSING TRIAL BALANCE.

Know and understand the STEPS OF THE ACCOUNTING CYCLE.