This document defines key accounting terms and outlines the accounting cycle. It explains that financial assets include equity instruments, contractual rights to receive cash, and notes receivable. Financial liabilities are obligations to deliver cash or exchange instruments under potentially unfavorable conditions, such as notes payable. The accounting cycle involves analyzing transactions, recording them in a journal, posting to ledgers, preparing an unadjusted trial balance, making adjustments, preparing an adjusted trial balance, and using that to make financial statements, closing entries, and a post-closing trial balance.