Following is a "checklist" of selected key concepts that are likely to be included on an exam. Review and check-off each noted item to be certain that important concepts have not been overlooked in your study.

Prepare a worksheet.

Know the appropriate worksheet columns into which amounts from the adjusted trial balance are to be extended.

How are profits and losses determined and presented in the worksheet?

Why might one prepare a work sheet, and what is the advantage of computerization?

When and why are the books "closed?"

Define temporary (nominal) and real accounts.

Be able to prepare closing entries related to revenues, expenses, the Income Summary, and the dividend account.

What benefit is a post-closing trial balance, and what type of accounts would be found there?

Flowchart the accounting cycle.

When and why might reversing entries be used?

Are reversing entries mandatory?

Demonstrate, by example, the use of reversing entries, versus no reversing entries.

Name limitations of the balance sheet.

What is included in the appropriate heading for a balance sheet?

In order, list the classifications for assets on a classified balance sheet.

In order of presentation, name five typical current assets.

Cite examples of long-term investments.

Be able to prepare the property, plant, and equipment section of a balance sheet (notice accumulated depreciation).

What types of items would be found in the intangible assets and other assets sections of the balance sheet?

What two key categories distinguish liabilities on the balance sheet?

Name three entity forms and note their significance to the equity section on the balance sheet.

Illustrate a simplified equity section for a corporation, and describe the nature of capital stock, retained earnings, and dividends.

What types of items are discussed in the notes to the financial statements?

What is meant by the term "full disclosure?"

What is meant by the term "liquidity?"

What is working capital?

How is the current ratio calculated?

How is the quick ratio calculated?