1)     Differentiate between cash basis accounting and accrual basis accounting

a)      Cash Basis Accounting

b)     Accrual Basis Accounting

2)     Define and apply three principles:

a)      The Time Period Concept

b)     The Revenue Recognition Principle

c)      The Matching Principle

3)     Explain the purpose of, and journalize, and post adjusting entries

    Two categories of Adjusting Entries: prepaids and accruals

Prepaids:

i)       Prepaid Expenses

(a)   Prepaid Rent

(b)   Office Supplies 

(c)    Prepaid  insurance

ii)     Depreciation

iii)   Unearned Revenues

Accruals:

iv)   Accrued Expenses

(a)   Accrued Salaries Expense

(b)   Accrued Interest Expense

v)     Accrued Revenues

4)     Explain the purpose of and prepare an adjusted trial balance

5)     Identify the impact of adjusting entries on the financial statements

6)     Explain the purpose of a worksheet and use it to prepare adjusting entries and the adjusted trial balance