Week 8 — Midterm Review & Exam
Why this matters
A bike-shop owner closing the books for a lender and a nurse manager signing off on a clinic's supply count both need numbers worth trusting, and controls that keep them that way.
In plain language
This chapter helps you review the first seven weeks before the midterm. Instead of rereading everything, you ask each topic for the one distinction it asks you to keep (a line between two ideas that are easy to mix up, such as an asset and an expense). You rerun each distinction on figures you have already worked for the bicycle shop, so the review adds no new numbers. Then you meet one new idea: internal control (the everyday rules a business follows so its cash, its goods, and its records stay safe and right). You finish by seeing why even good controls give confidence, not a guarantee.
- Already covered: Weeks 1 to 7, from the accounting equation to inventory costing.
- This week: nine distinctions reviewed, then internal control.
- How they connect: each distinction places a figure; controls keep the records reliable.
- Where we're going next: Week 9, Cash and the Bank Reconciliation.
Focus
Which one distinction does each topic ask you to keep, and how does a business keep its records trustworthy?
By the end of this module, you should be able to:
- [ ] tell an asset, a liability, and an expense apart
- [ ] sort adjustments into deferrals and accruals
- [ ] name the five components of internal control
- [ ] explain reasonable, not absolute, assurance
To-do
Plan your week
- Read Chapter 8 (~30–40 minutes), then the lecture and slides.
- Do the practice exercises (15–25 minutes).
- Join the discussion (about 45 minutes).
- Take the midterm, without AI help.
This week's checkpoint: sort the bicycle shop's six adjustments into deferrals and accruals.
You've got this
Take it in order, and ask your instructor early if stuck.
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