● State the basic accounting equation and explain how it relates to the financial statements .
● Apply the basic accounting equation to transactions th at lead to a simple balance sheet.
● Apply the basic accounting equation to transactions that lead to a complete set of financial statements.
● Describe the structure and role of journal entries and ledgers.
● Use journal entries and ledger accounts to prepare a simple balance sheet.
● Use journal entries and ledgers accounts to prepare a complete set of financial statements.
● Explain how closing entries transition the financial statements from one period to the next.
● Define contra accounts and the ro le the y play on the financial statements.
● Define treasury stock and describe where it can be found on the financial statements.
● Demonstrate how the sale of non - inventory assets affects the financial statements.
● Discuss and illustrate the difference b etween the accrual - basis and cash basis of accounting.
● Demonstrate using several examples how net income on the income statement can be reconciled with net cash from operating activities on the statement of cash flows.​