Financial effects of business
activities that affect the balance
Journal entries & T-accounts
Prepare a trial balance and
classified balance sheet
LO 7-2 How to report Inventory and Cost of
LO 7-3 Compute inventory cost using inventory
LO 7-5 Inventory Turnover Ratio
Learning Objective 7-2
Explain how to report
Inventory and Cost of Goods
Held for one or more years
Used to produce income
See, feel, or kick them
Lack physical substance
Exclusive right evidenced by legal
Chapter 1 Topics
LO 1 - Organizational forms and business
LO 2 Four basic financial statements
LO 3 How the financial statements are
used by decision makers
LO 4 Factors that contribute to useful
Learning Objective 1-1
Learning Objective 6-1
Distinguish between service
and merchandising operations.
Objective 6-1 Check
A company buys footwear and clothing from
LO 4-1 Why adjustments are needed.
LO 4-2 Preparing adjustments at the end of
LO 4-3 Preparing an adjusted trial balance.
LO 4-4 Preparing financial statements.
LO 4-5 Explaining the closing process.
LO 4-6 How adjustments affect