Accounting 201 Handout
Final Exam Fall 2007
1. Accounting 201 final exam for all sections will be held Wednesday,
December 12, 2007, from 5:15-7:15 p.m. Note that this exam is scheduled late in the
day, so be sure and pace yourself so you have time and energy
to take the test. Also note the place of
the exam, which may be different from your regular classroom.
2. The final counts at least 20 percent of your grade.
3. Locations for the exam are as follows:
Section-001-002) – R. Putman – Humanities Auditorium
4. The exam will consist of the following:
50 points: 50
multiple-choice questions over Chapters 1 – 12.
10 points:
articulation of income statement, retained earnings statement and balance sheet
(Insert missing figures on each financial statement)
13 points: Account
classification (Asset, Liability, Stockholders’ Equity, Revenue, Expense) and increase side of accounts
12 points: calculate cost of ending inventory
and cost of merchandise sold using LIFO, FIFO, and average
costing system (periodic inventory system)
15 points: calculate
depreciation expense, book value, accumulated depreciation, and gain or loss on
sale of fixed assets using the straight-line depreciation method.
100 points total
5. The multiple choice portion of the exam
will be computer scored, so be sure and bring a sharp lead pencil and good
eraser. Don't for get your calculator! Be certain it has a fresh battery.
At a minimum be sure you review:
· The
financial statements, their format, what they disclose (and how they
articulate).
· The
accounting equation and how transactions impact it.
· Meaning
of terms such as asset, liability, stockholders' equity, retained earnings,
revenue, expense,
· net income,
etc.
· The
different types of accounts, their normal balance, debit and credit rules to
increase or decrease.
· Cash
v. accrual basis of accounting.
· Necessary
adjusting entries at end of accounting period in a given situation and the
impact of the
entries on the financial
statements (as well as the impact if the entry is NOT made).
· Which
accounts are permanent and which are temporary (nominal), and the closing
process to close temporary accounts.
· Concepts
and assumptions underlying accounting (GAAP).
· Accounting
for a merchandising firm - accounts and entries to record purchases and sales
of inventory,
payments within
(and after) discount period, returns, etc.
· Periodic
v. perpetual inventory and LIFO, FIFO, and weighted average cost flow
assumptions.
· Appropriate
controls over cash
· Bank
reconciliation items for addition and deduction per bank and per books
· Accounting
for accounts receivable and uncollectible accounts (Including estimation of bad
debts expense and resulting balances in allowance
for doubtful accounts.
· Accounting
for notes payable and receivable (esp. calculation and accrual of interest.
· Accounting
for plant and equipment - cost, depreciation using SL method, as well as accumulated
depreciation
and book value,
and gains/losses, on disposals.
·
Working capital and what
distinguishes current assets and current liabilities from other assets and
liabilities.
·
Accounting for long-term debt; bonds payable,
discount and premium; effective interest determination.
·
Difference between authorized, issued, and
outstanding stock. Know what Treasury
stock is and what
increases and
decreases retained earnings.
v
From the cash flow statement, be sure to know
what goes into the calculation of cash flows from each of the major sections,
operating activities, investing activities, and financing activities. Also, the difference between the direct and
indirect methods of presenting cash flow from operating activities.
Good Luck and Study Hard!!!