ACCT504 Final Exam Study Guide

The ACCT504 Final Exam will be an online open-book, open-notes, open-computer exam with a time limit of three hours and 30 minutes. It will be worth 250 points or 25% of your course grade. The Final Exam is two pages long and will consist of 14 multiple-choice questions worth five points each and five essays worth 36 points. Some of the multiple-choice questions are problem-based. Of the five essays, three of the essays require calculations while two of the essays are qualitative in nature. Terminal Course Objectives A, B, C, D, E, F, and G are all addressed on this exam. You should review the following concepts for this exam. For the multiple choice questions worth a total of 70 points, you should know: 1. 2. 3. 4. 5. The characteristics of the corporate form of business. About the term "cash dividend". Which accounts have debit or credit balances. The difference between cash-basis versus accrual-basis of accounting. The meaning and implications of using FIFO, LIFO, and weighted average costflow assumptions. 6. How to calculate depreciation using the straight-line method. 7. The journal entry for the issuance of bonds (at par, discount, or premium) and for the issuance of stock (at par or above par). 8. How to determine the market value of a bond. 9. The various adjustments that are made to net income in arriving at net cash flow from operating activities. 10. The different tools of financial statement analysis, and how each tool is used, as well as the different names for certain tools of analysis. 11. The different ratios, why/how those ratios are used, and which external user is interested in a certain ratio. For the calculation-based essay questions worth a total of 108 points, you should know: 1. How to prepare a classified balance sheet and calculate the different balance sheet ratios that you learned in this class. 2. How to prepare a a multi-step income statement and calculate the income statement ratios that you learned in this class. 3. How to interpret and explain changes in the major sections of the statement of cash flows and how to calculate free cash flow.

ACCT504 Final Exam Study Guide

For the qualitative based essay questions worth a total of 72 points, you should know: 1. How to choose the correct inventory cost flow method and depreciation method given a net income objective. 2. How to explain key ratios and determine which of two companies is performing more effectively. Similar to course project. A good way to prepare for this exam in addition to reading Chapters 1 through 13 is to replay the Live Lectures and review the Illustrations and solutions for the problems listed below. Helpful Textbook Illustrations
Illustration 1-1 on page 6 Illustration 1-2 on page 7 Illustration 1-8 on page 15 Illustration 1-9 on page 17 Illustration 2-1 on page 48 Illustration 2-2 on page 49 Illustration 2-3 on page 50 Illustration 2-4 on page 50 Illustration 2-5 on page 51 Illustration 2-6 on page 51 Illustration 2-7 on page 52 Illustration 2-8 on page 53 Illustration 2-9 on page 54 Illustration 2-11 on page 56 Illustration 3-2 on page 104 Illustration 3-3 on page 110 Illustration 3-4 on page 111 Illustration 3-15 on page 115 Illustration 3-16 on page 116 Illustration 3-32 on page 127 Illustration 3-34 on page 129 Illustration 4-2 on page 167 Illustration 4-23 on page 181 Illustration 4-24 on page 181 Illustration 5-1 on page 230 Illustration 5-6 on page 235 Illustration 5-7 on page 242 Illustration 5-8 on page 242 Illustration 5-9 on page 243 Illustration 5-11 on page 245 Illustration 5-15 on page 248 Illustration 5-17 on page 250 Illustration 6-2 on page 285 Illustration 6-6 on page 291 Illustration 6-8 on page 292 Illustration 6-11 on page 293 Illustration 6-13 on page 295

ACCT504 Final Exam Study Guide

Illustration 6-17 on page 300 Illustration 7-2 on page 343 Illustration 7-3 on page 343 Illustration 7-4 on page 347 Illustration 7-5 on page 348 Illustration 7-6 on page 350 Illustration 8-3 on page 403 Illustration 9-6 on page 454 Illustration 9-8 on page 455 Illustration 9-9 on page 455 Illustration 9-10 on page 456 Illustraton 9-11 on page 457 Illustration 9-12 on page 458 Illustration 10-4 on page 514 Illustration 10-5 on page 515 Illustration 10-8 on page 518 Illustration 10-9 on page 518 Illustration 11-2 on page 573 Illustration 12-1 on page 628 Illustration 12-6 on page 635 Illustration 12-12 on page 639 Illustration 12-14 on page 641 Illustration 13-8 on page 698 Illustration 13-9 on page 698 Illustration 13-11 on page 699 Illustration 13-12 on page 699 Illustration 13-13 on page 701 Illustration 13-14 on page 702 Illustration 13-16 on page 704 Illustration 13-17 on page 704 Illustration 13-18 on page 705 Illustration 13A-5 on page 714 Illustration 13A-6 on page 714 Illustration 13A-7 on page 715 Illustration 13A-8 on page 715 Illustration 13A-9 on page 716 Illustration 13A-10 on page 716 Illustration 13A-11 on page 717 Illustration 13A-12 on page 717 Illustration 13A-13 on page 718 Illustration 13A-14 on page 718 Illustration 13A-15 on page 719 Illustration 13A-16 on page 719 Illustration 13A-17 on page 720 Illustration 13A-18 on page 720 Ilustration 13A-19 on page 721 Illustration 13A-20 on page 721 Illustration 13A-21 on page 722 Illustration 13A-22 on page 722 Illustration 13A-23 on page 722 Illustration 13A-24 on page 723

ACCT504 Final Exam Study Guide

Helpful Textbook Problems

Problem 1-3A on page 35 Problem 1-4A on page 35 Exercise 2-4 on page 78 Exercise 2-7 on page 79 Exercise 3-1 on page 140 Exercise 3-16 on page 144 Problem 3-2A on page 145 Exercise 4-11 on page 207 Problem 4-8B on page 219 Exercise 5-6 on page 263 Problem 5-4A on pages 266 and 267 Exercise 6-4 on page 317 Exercise 7-2 on page 375 Exercise 7-4 on page 375 Problem 9-8A on page 492 Exercise 12-2 on page 666 Exercise 12-6 on page 667 Exercise 13-5 on page 728 Exercise 13-10 on page 730 Problem 13-2A on pages 736 and 737

End of Final Exam Study Guide.