ACCT504 Midterm Exam Study Guide

YOU MAY WANT TO PRINT THIS GUIDE.

1. The Midterm is open book and open notes. The maximum time you can spend in the exam is 2 hours,
30 minutes. If you have not clicked the Submit for Grading button by then, you will be exited from the
exam automatically. In the exam environment, the Windows clipboard is disabled, so you will not be
able to copy exam questions or answers to or from other applications.
2. You should click the Save Answers button in the exam frequently. This helps prevent connection
timeouts that might occur with certain Internet service providers and also minimizes lost answers in the
event of connection problems. If your Internet connection does break, when you reconnect, you will
normally be able to get back into your Midterm Exam without any trouble. Remember, though, that the
exam timer continues to run while students are disconnected, so students should try to log in again as
quickly as possible. The Help Desk cannot grant any student additional time on the exam.
3. See the Syllabus section "Due Dates for Assignments & Exams" for due date information.
4. Reminders

You will only be able to enter your online Midterm Exam one time.
Click the Save Answers button often.
If you lose your Internet connection during your Midterm Exam, log on again and try to access it.
If you are unable to enter the Midterm Exam, first contact the Help Desk and then your
instructor.
You will always be able to see the time remaining in the Midterm Exam at the top right of the
page.

5. Assessments With Multiple Pages

Make sure to click the Save Answers button before advancing to the next page (we also suggest
clicking on Save Answers while you are working).
Complete all of the pages before submitting your Midterm Exam for instructor review.
Do NOT use your browser's Back and Forward buttons during the Midterm Exam.
Please use the provided links for navigation.

6. Submitting Your Midterm Exam

When you are finished with the Midterm Exam, click on the Submit for Grading button.
Please note: Once you click the Submit for Grading button, you will NOT be able to edit or
change any of your answers.

7. Exam Questions

There are 10 randomly selected multiple choice questions each worth 3 points, for a total of 30
points. Some of the multiple choice questions are problem based.

There are 4 randomly selected essay questions each worth 30 points, for a total of 120 points.
Of the 4 essay questions, 3 of the essay questions are problem based because this is an
accounting course.
The Midterm Exam covers TCOs A, B, C, D, and E and Weeks 14.
The Midterm Exam consists of 1 page.
The Midterm Exam questions are pooled. This means that not everyone will have the same
questions. Even if you do have some of the same questions, they may not be in the same order.
These questions are distributed among the TCOs. The entire exam is worth 150 points.
On the essay questions, your answers should be succinct, should fully address each part of the
question, and should demonstrate your knowledge and understanding in a concise but complete
manner. Most essay questions require answers that are a couple of paragraphs (not a couple of
sentences) that directly speak to each part of the question. Some students opt to work on the
essay questions first, due to their higher point value and the length of time needed to
adequately address each question, but this is entirely your choice.
Remember to always use proper citation when quoting other sources. This means that ANY
borrowed material (even a short phrase) should be placed in quotation marks with the source
(URL, author/date/page number) immediately following the end of the passage (the end quote).
Changing a few words in a passage does NOT constitute putting it in your own words, and
proper citation is still required. Borrowed material should NOT dominate a students work; it
should only be used sparingly to support the students thoughts, ideas, and examples. Heavy
usage of borrowed material (even if properly cited) can jeopardize the points for that question.
Uncited material can jeopardize a passing grade on the exam. As a part of our commitment to
academic integrity, your work may be submitted to turnitin.com, an online plagiarism-checking
service. So please be VERY mindful of proper citation.

8. Some of the key study areas are shown below. Although these are key areas, remember that the
exam is comprehensive for all of the assigned course content during Weeks 1 through 4 and this study
guide may not be all inclusive.
For the multiple choice questions worth a total of 30 points, you should know
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

what information is desired by external users of financial statements;

about operating activities, investing activities, and financing activities;
the definitions of asset, liability, equity, revenue, and expense;
what items appear under each classification in the balance sheet;
how to compute earnings per share;
about a ledger account, its different parts, the rules of debit and credit, and the meaning of the
term normal balance of an account;
the meaning and purpose of adjusting entries, and the different types of adjusting entries;
the difference between periodic and perpetual inventory systems;
the components of cost of merchandise inventory (e.g., invoice price less discounts plus
whatever other items are included or excluded); and
the main points of difference among the four inventory cost-flow assumptions that you learned
about.

For the problem questions worth 90 points, you should

1. know how to prepare a single-step and a multiple-step income statement and calculate certain
ratios based on the numbers in the income statement;
2. be able to create journal entries; and
3. be able to apply your knowledge of the internal control objectives and principles.
For the essay question worth 30 points, you should know
1. about a ledger account, its different parts, the rules of debit and credit, and the meaning of the
term normal balance of an account; and
2. about an accounting information system and its components (e.g., ledger accounts, trial
balance, etc.).
9. Topics and exercises or problems that were covered in the Discussion areas will be prime targets.
10. Understanding the concepts covered on the case studies is critical for success.
11. Reviewing the textbook Exhibits is advised.
12. Review the weekly lectures.
13. Replay the iConnect live lectures.
14. Reviewing the TCOs, which are listed below for your convenience, will also be great preparation for
the Midterm Exam.

Given an annual report the student should be able to read, understand, analyze, and explain a Companys
Balance Sheet to other decision makers and use the knowledge and skills to make business decisions.

Given an annual report the student should be able to read, understand, analyze and explain a Companys
Income Statement to other decision makers and use the knowledge and skills to make business decisions.

Given an annual report the student should be able to read, understand, analyze, and explain a Companys
Statement of Cash Flows to other decision makers and use the knowledge and skills to make business
decisions.

Given business transactions the student should understand them (both explicit and implicit), be able to
analyze them (how they affect the accounting equation) and explain how they affect general ledger
accounts, the Accounting Information System (AIS) and the Financial Statements. Use this knowledge in
the planning and forecasting functions of the management role.

Given an annual report the student should be able to understand accrual accounting, its underlying
principles and concepts, how it affects the financial statements and be able to explain it to other business
managers. Also, be able to use the knowledge to make business decisions, including planning, forecasting
and cash management.

Finally, if you have any questions for me, please post them to our Q & A Forum or e-mail me. Good luck
on the exam!