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!!!