Study Guide
The ACCT504 Midterm will be an online open-book, open-notes, open-computer exam with a time limit of 2 hours and 30 minutes. It will be worth 150 points or 15% of the course grade.
The Midterm is multiple pages and consists of 30 multiple choice questions, one essay question, and one problem. The multiple choice questions are worth 3 points each. Some of the multiple choice questions are problem-based. There is also one essay question worth 25 points and one problem worth 35 points. Terminal Course Objectives A, B, C, D, and E are all addressed on this exam.
For the multiple choice questions worth 90 points, you should
1. know what information is desired by external users of financial statements;
2. know about operating activities, investing activities, and financing activities;
3. be able to calculate net cash provided by operating activities in a simple situation (by identifying which activities are operating activities);
4. know the definitions of asset, liability, equity, revenue, and expense;
5. know what items appear under each classification in the balance sheet;
6. know how to compute earnings per share;
7. know the composition of a retained earnings statement;
8. know about a ledger account, its different parts, the rules of debit and credit, and the meaning of the term normal balance of an account;
9. know about revenue recognition principle, matching principle, and time-period assumption;
10. know the computation net income under accrual accounting (revenues—expenses);
11. know the meaning and purpose of adjusting entries, and the different types of adjusting entries;
12. know the difference between periodic and perpetual inventory systems;
13. know how to calculate net cost of purchases when terms of payment look like, for example, 3/10 n/45;
14. know the components of cost of merchandise inventory (e.g., invoice price less discount plus what other items are included?);
15. know the main points of difference among the four
The Midterm is multiple pages and consists of 30 multiple choice questions, one essay question, and one problem. The multiple choice questions are worth 3 points each. Some of the multiple choice questions are problem-based. There is also one essay question worth 25 points and one problem worth 35 points. Terminal Course Objectives A, B, C, D, and E are all addressed on this exam.
For the multiple choice questions worth 90 points, you should
1. know what information is desired by external users of financial statements;
2. know about operating activities, investing activities, and financing activities;
3. be able to calculate net cash provided by operating activities in a simple situation (by identifying which activities are operating activities);
4. know the definitions of asset, liability, equity, revenue, and expense;
5. know what items appear under each classification in the balance sheet;
6. know how to compute earnings per share;
7. know the composition of a retained earnings statement;
8. know about a ledger account, its different parts, the rules of debit and credit, and the meaning of the term normal balance of an account;
9. know about revenue recognition principle, matching principle, and time-period assumption;
10. know the computation net income under accrual accounting (revenues—expenses);
11. know the meaning and purpose of adjusting entries, and the different types of adjusting entries;
12. know the difference between periodic and perpetual inventory systems;
13. know how to calculate net cost of purchases when terms of payment look like, for example, 3/10 n/45;
14. know the components of cost of merchandise inventory (e.g., invoice price less discount plus what other items are included?);
15. know the main points of difference among the four