Study Tips for the Final Exam GB 112 Fall 2013 General Information about the Final Exam

The exam will be held Saturday, December 14, 2013, from 11:30 a.m.-1:30 p.m. oom a!!i"#me#t! will be a##ou#ced i# cla!! a#d will be po!ted o# the $%112&llSectio#! blac'board !ite a#d o# the door of the Departme#t of &ccou#ta#cy (&&) 20*+. ,lea!e fi#d out your room a!!i"#me#t ahead of time !o there will be #o co#fu!io# the day of the exam. -ou will #eed to u!e a #umber two pe#cil for the exam. ,lea!e bri#" a !ufficie#t #umber of !harpe#ed pencils with you. &l!o bri#" a fi#a#cial calculator, but o#e that i! not text capable ,lea!e bri#" a photo .D. -ou will #ot be allowed to !hare a calculator with a#other !tude#t a#d will #ot be allowed to u!e a#y text-capable tech#olo"ie!, i#cludi#" cell pho#e!, !mart pho#e! or a#y other !imilar de/ice. The proctor! will #ot ha/e calculator! or pe#cil!. &rri/e early !o the exam ca# !tart o# time. Do #ot bri#" bac'pac'! or lar"e boo' ba"! to the fi#al exami#atio#. Space to !tore !uch item! may be limited i# !ome room!. ,roctor! will #ot a#!wer 0ue!tio#! duri#" the exam.

The exam will co#!i!t of 20 multiple choice 0ue!tio#!, 1 problem! a#d 2-3 !hort e!!ay 0ue!tio#!. Topics to Study )la!!e! 1 -2 lear#i#" ob2ecti/e! %e able to li!t a#d explai# the ob2ecti/e! of a bu!i#e!! %e able to li!t a#d explai# the ma2or fu#ctio#al area! of a bu!i#e!! 3#der!ta#d the term 4!ta'eholder5 a#d be able to li!t the ma2or !ta'eholder! of a bu!i#e!! %e able to explai# the differe#t type! of bu!i#e!! or"a#i6atio#! a#d to di!cu!! the ad/a#ta"e! a#d di!ad/a#ta"e! of each

)la!!e! 3-4 lear#i#" ob2ecti/e! %e able To explai# why compa#ie! #eed mo#ey %e able To defi#e a#d explai# the differe#ce! betwee# debt a#d e0uity, i#cludi#" ad/a#ta"e! a#d di!ad/a#ta"e! of each %e able To explai# the differe#ce! betwee# preferred a#d commo# !toc' %e able To explai# the differe#ce! betwee# pri/ate a#d public !ource! of debt a#d e0uity

%e able To explai# the term! .,7 a#d S87 %e able To explai# the differe#ce betwee# primary a#d !eco#dary mar'et! 3#der!ta#d the role of the S8) i# o/er!eei#" !ecuritie! a#d the role of rati#" a"e#cie!. 9#ow the differe#t !ource! of fi#a#ci#" !uch a! a#"el i#/e!tor! a#d /e#ture capitali!t!. 3#der!ta#d the relatio#!hip betwee# ri!' a#d retur# %e able to compute a di/ide#d yield, capital "ai#! a#d total retur# for a o#e year holdi#" period %e able to compute mar'et capitali6atio#

)la!!e! 1-: lear#i#" ob2ecti/e! 3#der!ta#d the .mporta#ce of T;< a#d time li#e! Defi#e a#d compute u!i#" fi#a#cial calculator o o o o o o o

=; of lump !um =; of a# a##uity ,; of lump !um ,; of a# a##uity ,ayme#t ate >umber of ,eriod!

3#der!ta#d a#d be able to ma#ually prepare a# &morti6atio# !chedule with up to fi/e payme#t! a#d determi#e how much i! owed o# a loa# after a !pecific #umber of payme#t! with a fi#a#cial calculator )ompute the /alue of a bo#d with !emi-a##ual i#tere!t payme#t! )ompute the /alue of a 6ero-coupo# bo#d )ompute yield to maturity 9#ow the four primary rea!o#! that bu!i#e!!e! fail, i#cludi#" i#!ufficie#t ca!h %e able to di!cu!! the importa#ce of ca!h flow! a#d ca!h flow! foreca!ti#" %e able to compute the ,; of u#e/e# ca!h flow!

)la!! 11 lear#i#" ob2ecti/e! 3#der!ta#d the accou#ti#" e0uatio#.

%e able to li!t a#d de!cribe the four ba!ic fi#a#cial !tateme#t!. %e able to defi#e a#d "i/e example! of the fi#a#cial !tateme#t eleme#t!. 3#der!ta#d the co#cept of articulatio#.

)la!! 12 lear#i#" ob2ecti/e! )ompare ca!h a#d accrual accou#ti#", a#d be able to defi#e a#d illu!trate accrual accou#ti#". 9#ow the "e#erally accepted accou#ti#" pri#ciple! of fi#a#cial reporti#" (!uch a! rele/a#ce, faithful repre!e#tatio#, re/e#ue reco"#itio# expe#!e reco"#itio#, e#tity a!!umptio#, etc.+. Defi#e a#d explai# the acro#ym .= S a#d u#der!ta#d the curre#t po!itio# of the 3.S. re"ardi#" the u!e of .= S

)la!!e! 13-1? lear#i#" ob2ecti/e! )ompare ca!h a#d accrual accou#ti#", a#d be able to defi#e a#d illu!trate accrual accou#ti#". %e able to create a cla!!ified bala#ce !heet, a# i#come !tateme#t a#d a !tateme#t of retai#ed ear#i#"! i# "ood form. %e able to co#duct tra#!actio# a#aly!i! ("i/e# a bu!i#e!! tra#!actio# '#ow how it affect! the accou#ti#" e0uatio# a#d the fi#a#cial !tateme#t!+. 9#ow the "e#erally accepted accou#ti#" pri#ciple! of fi#a#cial reporti#" (!uch a! rele/a#ce, faithful repre!e#tatio#, re/e#ue reco"#itio# expe#!e reco"#itio#, e#tity a!!umptio#, etc.+. Defi#e a#d explai# the acro#ym .= S a#d u#der!ta#d the curre#t po!itio# of the 3.S. re"ardi#" the u!e of .= S. %e able to prepare 2our#al e#trie! i# "ood form a#d record tra#!actio#! i# T accou#t!. %e able to ide#tify a #ormal bala#ce for a# accou#t. 3#der!ta#d how a chart of accou#t! i! co#!tructed.

)la!!e! 1:-20 lear#i#" ob2ecti/e! @i!t a#d explai# the ob2ecti/e! a#d compo#e#t! of a !y!tem of i#ter#al co#trol %e able to "i/e example! of i#ter#al co#trol !tre#"th! a#d wea'#e!!e! a#d relate tho!e example! to i#ter#al co#trol ob2ecti/e!. .#clude !pecific refere#ce! to Sa"e. 9#ow what a# &.S i! a#d what it doe! a#d be able to explai# the differe#ce betwee# data a#d i#formatio#.

%e aware of the ma2or pro/i!io#! of the Sarba#e!-7xley &ct. 3#der!ta#d the re!po#!ibilitie! of i#depe#de#t exter#al auditor! a#d the differe#ce! betwee# their re!po#!ibilitie! a#d the re!po#!ibilitie! of ma#a"eme#t.

)la!!e! 21-23 lear#i#" ob2ecti/e!

3#der!ta#d the co#cept of accrual accou#ti#", i#cludi#" the expe#!e reco"#itio# a#d re/e#ue reco"#itio# pri#ciple!. 3#der!ta#d why we #eed ad2u!ti#" e#trie!. %e able to prepare ad2u!ti#" e#trie! for the followi#" type! of ad2u!tme#t!: o &ccrual! o Deferral! o Depreciatio# o 3#collectible &ccou#t! 8xpe#!e
)la!! 24 lear#i#" ob2ecti/e!

3#der!ta#d the u!e of a#d #eed for a trial bala#ce. 3#der!ta#d the clo!i#" proce!!. %e able to prepare a# ad2u!ted bala#ce !heet, i#come !tateme#t a#d !tateme#t of retai#ed ear#i#"! i# "ood form.

)la!!e! 21-2A lear#i#" ob2ecti/e! %e able to compute the co!t of i#/e#tory u!i#" differe#t acceptable method! a#d to i#terpret the impact of the!e i#/e#tory method! o# the fi#a#cial !tateme#t!. 3#der!ta#d the differe#ce! betwee# fraud a#d ear#i#"! ma#a"eme#t. @i!t a#d explai# the compo#e#t! of the fraud tria#"le.

General Su!!estions -our !tudyi#" !hould i#clude: &ll cla!! #ote!, i#cludi#" the demo#!tratio# of the S&$8 !y!tem a#d the /i!it! from 8r#!t B -ou#" profe!!io#al!. The )our!e ,ro2ect a!!i"#me#t. &ll a!!i"#ed homewor' problem! a#d cla!! exerci!e!. &ll a!!i"#ed readi#"!, i#cludi#" the .> a#d the T= ca!e!.

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