Mid-Term Review. CHAPTERS 1-2 1.Accounting assumptions 2.FASB 3.GAAP 4.CPA.

Mid-Term Review

CHAPTERS 1-21.Accounting assumptions2.FASB3.GAAP4.CPA

THE BASICS

1.The accounting equation2.Account classification3.Increases decreases4.Assets5.Liabilities6.Owner’s Equity

THE BASICS

1.Fiscal period2.The accounting cycle

ACCOUNTS

1.Temporary accounts2.Permanent accounts3.Revenue4.Expense5.Withdrawals6.Chart of accounts,

numbering

DEBITS VS. CREDITS

1.Definitions2.Normal balances3.Increases/Decreases

POSTING

1.Definition2.Five steps3.Calculating balances

Transactions

1.Four steps2.Journalizing3.Posting4.Trial Balance