Accounting 201=
Hints for Exam=
No. 1
(Chapters 1, 2, 5)
= &nbs= p; I. &nb= sp; First, there will be 25 multiple-choice questions w= orth 2 points each for 50 points total.
= a. = Most of these questions will have completion type answers; only two have calculations involved in the answer
= b. Know what is reported and the categories of reporting on each of the four financ= ial statements we have studied thus far (Balance Sheet, Income Statement, Retai= ned Earnings Statement, and Cash Flow Statement)
= c. = What is financial accounting and what type of users does it target?
= d. Know how the accounting equation works and what is meant by double-entry (Duality effect)
= e. = Know the additional reporting requirements for publicly held companies and what organization regulates these companies
= f. = Know what current assets and current liabilities are and how they are reported on the balance sheet
= g. Know the categories of cash flows (outflows) reported on the cash flow statement=
= h. Several questions involving the retained earnings account (What increases or decrea= ses the account, where it is reported, etc.)
= i. = Effects on the accounting equation of various finan= cial transactions
= &nbs= p; II. &n= bsp; The exam will continue with four short problems as follows:
= a. = (20 points) Five different cases with balance sheet and income statement totals given and two missing figures that you will calculate and insert in blank spaces provided (For example; Assets, $100,000, Stockholders’ Equity, $30,000; Liabilities, $? )
=
b. (12
points) A partial balance sheet will be given to you with some figures given
and blank spaces provided for you to calculate and fill in (For example; Ca=
sh,
$1000; Accounts Receivable, $ $?
= c. = (8 points) Four balance sheet categories are presented and you will show how a debit and credit affects the categories (increase or decrease)
= d. (10 points) Specific account titles will be listed and you will indicate the typical (normal) balance of each account