ACC 100 - BUSINESS CYCLE ACCOUNTING
CONCEPTS TO KNOW:
• Understand the basic four financial statements, what they report, how they are
useful and how they are inter-connected.
• Understand the debit-credit framework and know how to make basic journal
• Know how to make adjusting entries for accruals and deferrals and why they are
• Know the difference between cash and accrual accounting and what GAAP
• Understand the purpose of and methods for making closing entries and be able to
distinguish these from adjusting entries (i.e. what different purposes do closing
entries and adjusting entries serve?).
• Be able to name and describe each stage of the Accounting Cycle and know the
order in which they occur and how they are inter-related.
• Know the general kinds of financial ratios (Profitability, Liquidity, Solvency),
what they are used for and who uses them.
• Be sure to understand the formulas for all financial ratios and where to find the
inputs (i.e. which statements or other sources).