AC210 Spring 2012 Exam 1 Study Guide: Preparing for Financial Accounting Exam - Prof. Xiao, Study notes of Financial Accounting

Download AC210 Spring 2012 Exam 1 Study Guide: Preparing for Financial Accounting Exam - Prof. Xiao and more Study notes Financial Accounting in PDF only on Docsity! AC210 Spring 2012 Exam 1 Study Guide The main concepts tested on the first exam are set forth below. Recommended problems are also provided from the end of each chapter in the textbook. *Note that exercises and problems have been put into groups. Those problems within each group are very similar, and are thus duplicative and repetitive. You will not necessarily need to do all of those problems in that group, as they are merely another version of the same problem. You can complete as many as you need for practice until you fully understand the concepts. The exam will consist of multiple choice questions. The questions will be both conceptual and computational. Part of your grade on the exam is based on the fact that you can complete the exam in the allotted time frame of 1 hour and 15 minutes. We highly recommend that you do the following to prepare for the exam: 1. Read Chapters 1-4 thoroughly and repeatedly. If you do not read the chapters thoroughly, you will not do well on this exam. 2. Work the exercises and problems suggested below and on the assignments posted in E-learning. 3. Review the Powerpoint slides in E-learning. 4. Review the Synchrosummaries in E-learning. 5. Practice online homework problems from previous homework assignments. You will note that these are extremely similar to those problems in the textbook. 6. Review previous quizzes. You must bring to class on the day of the exam: 1. Acceptable calculator: only nonprogrammable calculators can be used during the exams and quizzes. This precludes the use of programmable calculators (i.e., TI 85, etc.), cell phones, PDAs or any other electronic devices where text can be stored. 2. ACT card. If your ACT cards lacks a photo, you will also need to bring photo identification. 3. Pencil for Scantron. 4. Food and drinks are prohibited during the exam for potential academic misconduct reasons. Chapter 1  Purpose of a financial accounting system and its users – pages 5-7, 17.  Basic accounting equation terms and meanings – pages 8-9: M3.  Basic content and purpose of each of 4 main financial statements – pages 9-14 and Exhibit 1.7. Includes classification of accounts on financial statements under basic headings: M4, M5, M6, M7, M8, M9, M10, M11, M12, E1, E2. *Be able to identify which financial statement account appears on and in what section.*  Preparation of basic balance sheet: E3, E4  Preparation of basic income statement: E7, E10  Preparation of basic statement of cash flows: E11, E12  Preparation of statement of retained earnings: M13  Comprehensive (preparation of multiple financial statements): M14, E9, CP1-1, CP1-3, PA1-1, PA1-3, PB1-1, PB1-3  Interpretation of financial statements: CP1-2, PA1-2, PB1-2 Chapter 2  Account classification – specific classification of account on balance sheet: M4, M5, M6, M12, M17, M18, M19, E3. You may be asked to identify which section the account belongs in or to compute subtotals such as total current assets or total long-term liabilities if given a list of accounts.  Transaction analysis – how a transaction affects the accounting equation (assets, liabilities, equity): M9, E4, E5, E8  Preparation of basic journal entries for financing and investing activities: M10, M13, M14, M15, M16, E6, E7, E11  Concepts related to the balance sheet, including current ratio, cost principle, and conservatism. Chapter 3  Identification of accrual basis revenue and expense: M1, M2, M3, M9, M10, E2, E3, E4, E5  Transaction analysis – how a transaction affects the accounting equation: M6, M7, M17, M18, E6, E7, E15  Preparation of initial debit/credit journal entries for operating activities: M4, M5, M11, M12, M13, M14, M15, M16,E8, E9, E10, E16, E20, CP3-2, PA3-2, PB3-2  Preparation of income statement: M8, M19, M21  Preparation of T accounts and trial balance: E11, CP3-3, PA3-3, PB3-3 Chapter 4  Transaction analysis – how a transaction affects the accounting equation: M5, M7, E4, E6, E9, CP4-3, PA4-3, PB4-3  Preparation of adjusting debit/credit journal entries: M4, M6, M8, M9, M10, E3, E8, E18, CP4-2, PA4-2, PB4-2  Preparation of adjusting debit/credit journal entries along with posting to T accounts: M16, M17, M18, M19, M20, M21, M22  Adjusted trial balance: what is its purpose.  Closing temporary accounts: page 165, which accounts are closed, which accounts are not closed, what is purpose of closing. E17, CP4-1 Note: A significant portion of your exam will consist of these two learning objectives above: (1) Transaction analysis and (2) preparation of journal entry in debit/credit form Reminder: Exam Makeup Policy from syllabus There are no make-up exams, except in very extreme circumstances. Contact your instructor immediately if you run into an emergency. If you fail to contact your instructor by the day of the exam, you may be denied the opportunity to take a make-up exam. If you are granted a make-up exam, you will receive a different exam than the original exam, which may include short answer or essay questions, in addition to multiple choice and problems. You will also be told a date and time to take the make-up exam in a proctored environment; this time will be within 2 school days of the missed exam unless you are hospitalized. (A missed exam on a Tuesday will be made up on that Thursday. A missed exam on a Thursday will be made up on the following Monday.)