Mrs. Dailey
Accounting I Midterm Study Guide
Accounting I
Semester Study Guide
Midterm covers Chapters 1-5. The test will consist of but is not limited to the following material:
I.
II.
III.
Vocabulary words from Chapters 1-5
Concepts:
a. Chapter 1
i. Identify the 4 forms of businesses
1. Sole proprietorship, corporation, partnership, limited liability company
ii. Identify the 3 types of businesses
1. Service, merchandising, manufacturing
iii. State the accounting equation
iv. Define and describe the elements of accounting
1. Assets, Liabilities, Owner’s Equity
v. GAAP
vi. Explain the dual effect principle
vii. Create the three basic financial statements(in order of creation)
b. Chapter 2
i. Explain double-entry accounting system
ii. Explain the rules of debits and credits & apply to Assets, Liabs, & OE
iii. Explain the need for temporary accounts
iv. Record transactions in T accounts
v. Prepare a Trial Balance
c. Chapter 3
i. Record business transactions in a two-column journal
ii. Prepare a chart of accounts (with account numbers)
iii. Post from a two-column journal to ledger accounts
iv. Make correcting entries
d. Chapter 4
i. Explain the need for adjusting entries
ii. Make adjusting entries
iii. Complete a worksheet for a service business
iv. Prepare financial statements from a worksheet
v. Journalize and post adjusting entries
e. Chapter 5
i. Explain the two purposes of the closing process
ii. Journalize and post closing entries
iii. Prepare a post-closing Trial Balance
Practical Application
a. You may be asked to complete any of the following:
i. Prepare a Chart of Accounts
ii. Open accounts in the ledger
iii. Journalize transactions
iv. Post journal entries to ledger
v. Prepare a Trial Balance
vi. Prepare a Worksheet
vii. Make adjusting entries
viii. Prepare financial statements
ix. Journalize closing entries
x. Prepare a Post-Closing Trial Balance