Topics to know for Exam I
Chapter 1 – Environment and Theoretical Structure of Financial Accounting
• Know the basic objectives financial reporting and the basic elements of financial statement • Know the fundamental and enhancing qualitative characteristics of accounting information. • Know the assumptions, principles and constraints of accounting information and be able to identify when each is being illustrated in specific accounting contexts. Chapter 2 – Review of the Accounting Process
• Be able to prepare and/or answer questions related to journal entries, adjusting journal entries, and closing entries. • Be able to reconstruct an event or adjustment when information is missing or not given in chronological order. This may require using end of period information and cash receipt/disbursement information to reconstruct the event or adjustment needed.
Chapter 3 – The Balance Sheet
• Be able to prepare and/or answer questions related to a classified balance sheet in good form. • Know useful characteristics of the balance sheet and the limitations of the balance sheet.
Chapter 4 – The Income Statement and Statement of Cash Flows
• Know how to format an income statement when discontinued operations and extraordinary items are present. • Know when an item qualifies for discontinued operations and extraordinary item reporting. • Know how to report unusual or infrequent items on the income statement • Be able to do the income statement reporting of discontinued operations (when discontinued operations are sold in the reporting period and when they are held for sale, both with tax effects). • Be able to do the income statement reporting of extraordinary items (with tax effects). • Know how cash flows should be labeled on the statement of cash flows (operating, investing or financing) and be able to prepare a statement of cash flows using the direct method and indirect method.
The exam will be a combination of questions requiring short written responses and problems requiring calculations and/or appropriate journal entries or financial statement presentation. You will have 1 hour and 15 minutes to complete the exam.
The following sample exam reflects a random draw of questions from the material from Chapters 1-4 that you are expected to know. This sample exam is intended as a practice test to help you identify areas of weakness once you have studied all of the material listed above. The sample exam is not a guide of what to study.
SAMPLE EXAM 1
| | |Total Points |Your | |Question |Topic |Assigned |Points | |I |Conceptual Framework |14 | | |II |Adjusting entries |21 | | |III |Closing Entries |9 | | |IV |Balance Sheet |20 | | |V |Presentation of Income Statement |16 | | |VI |Statement of Cash Flows |20 | | |TOTAL | |100 | |
1. This examination consists of 7 pages,...