I. Foundational Concepts:
* The Accounting Equation: Assets = Liabilities + Equity. Understanding its components and how transactions impact it.
* Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS): The basic principles guiding financial reporting. Understanding the differences between these two frameworks is often important.
* Types of Business Organizations: Sole proprietorship, partnership, corporation, and the implications for accounting.
* The Accounting Cycle: The steps involved in recording, classifying, summarizing, and reporting financial transactions (journal entries, posting to ledgers, trial balance preparation, adjusting entries, financial statements).
II. Key Financial Statements:
* Income Statement: Understanding revenues, expenses, and net income/loss. Different formats of the income statement.
* Balance Sheet: Understanding assets, liabilities, and equity. Classifying assets and liabilities (current vs. non-current).
* Statement of Cash Flows: Understanding operating, investing, and financing activities. Direct and indirect methods.
* Statement of Changes in Equity: Tracking changes in retained earnings and other equity accounts.
III. Specific Accounting Procedures:
* Journal Entries: Correctly recording transactions using debits and credits. Understanding the different types of accounts (assets, liabilities, equity, revenues, expenses).
* T-Accounts: Using T-accounts to track account balances.
* Trial Balance: Preparing and understanding a trial balance.
* Adjusting Entries: Accruals (accrued revenues, accrued expenses) and deferrals (prepaid expenses, unearned revenues). Why these are necessary.
* Closing Entries: Preparing closing entries to prepare for the next accounting period.
* Bank Reconciliation: Reconciling bank statements with company records.
IV. Inventory Accounting: (Possibly, depending on the curriculum's depth)
* Inventory costing methods: FIFO, LIFO, weighted-average cost. Understanding the impact on the cost of goods sold and inventory valuation.
V. Potential Essay or Problem-Solving Questions:
Exams typically include a mix of multiple-choice, true/false, and problem-solving questions. Problem-solving questions might involve:
* Preparing journal entries for various transactions.
* Preparing a trial balance.
* Preparing adjusting entries.
* Preparing financial statements from a trial balance.
* Analyzing financial statement information.
* Solving accounting problems related to inventory costing.
To prepare effectively:
* Review your class notes and textbook thoroughly.
* Practice solving problems. Your textbook and online resources likely have plenty of exercises.
* Work through past exam papers (if available). This will give you a good sense of the exam format and the types of questions asked.
* Understand the underlying concepts, not just the procedures. Knowing *why* you are doing something is just as important as *how* to do it.
This is a general overview; the specific content of your exam will be determined by your instructor's syllabus. Always refer to your syllabus and course materials for the most accurate information.