CLEP Financial Accounting study plan

Define and distinguish the core financial statements and their interrelationships

Classify accounts into the five major categories and state normal debit/credit balances

Apply double-entry rules to record basic transactions in journal form

Prepare a simple trial balance from a set of journal entries

Record adjusting entries for accruals, deferrals, and depreciation

Close temporary accounts and post to retained earnings

Prepare a classified balance sheet in proper format

Compute working capital and interpret current ratio

Apply cost-flow assumptions (FIFO, LIFO, weighted average) to inventory and compute ending inventory and cost of goods sold

Account for receivables using the allowance method and write-offs

Compute depreciation under straight-line, units-of-production, and declining-balance methods

Differentiate current from noncurrent liabilities and record bond issuance at par

Prepare a multi-step income statement separating operating from nonoperating items

Classify items as operating, nonoperating, discontinued, or prior-period adjustments

Compute gross profit margin and explain what it signals

Identify the roles of standard-setting bodies and the conceptual framework assumptions and principles

Apply the revenue recognition core principle to simple contracts with performance obligations

Distinguish cash-basis from accrual-basis results and reconcile between them

Compute earnings per share for a simple capital structure

Explain the effect of inventory errors and estimate corrections on reported income

Prepare a statement of stockholders' equity showing issuance, net income, dividends, and treasury stock

Record equity transactions including stock dividends and stock splits

Analyze a balance sheet using two liquidity and two solvency ratios

Explain how income statement events flow into the balance sheet

Classify cash flows into operating, investing, and financing activities

Prepare the operating section under the indirect method starting from net income

Compute cash flows from investing and financing using comparative balance sheets

Reconcile net income to net cash provided by operating activities

Integrate all domains by working timed mixed-topic problem sets

Diagnose and re-drill the three weakest topic areas identified from practice results

Apply test-taking strategy to computational and conceptual items under time pressure

Review ethics, internal control, and other miscellaneous topics for recognition-level recall