Introduction to Financial Accounting
Final Exam Review Sheet
â€¢ 41 multiple choice questions x 2.5 points each = 102.5 points possible (out of 100)
â€¢ The exam will be taken online in Connect.You have 2 hours and only 1 attempt to take the exam.
â€¢ While notes can be used, the exam is timed so you should study to be prepared.As you study, think about application of the concepts in real-world situations.
Chapter 8 Topics
â€¢ Costs included in the capitalized price of fixed assets
â€¢ Purpose of depreciation
â€¢ Be familiar with the depreciation expense and accumulated depreciation accounts.
o What is reflected in each?
o Where do they appear in the financial statements?
â€¢ Calculation of a long-term assetâ€™s net book value and how it changes over time
â€¢ Calculation of straight-line depreciation (including prorating the depreciation amount in the first and last year of the assetâ€™s life)
â€¢ How to record depreciation and the impact on the financial statements
â€¢ Calculation of depreciation expense, accumulated depreciation, and net book value throughout an assetâ€™s life (pay close attention to the dates and what you are asked to calculate!)
â€¢ Ordinary repairs and maintenance that are expensed vs. improvements that are capitalized
Chapter 9 Topics
â€¢ Structure of the classified balance sheet and accounts that belong in each section
o Be able to classify current vs. long-term assets and liabilities
â€¢ Calculation and interpretation of the current ratio
Chapter 12 Topics
â€¢ Three categories of the statement of cash flows and the content of each
â€¢ Structure of the statement of cash flows (indirect method) and cash inflows and outflows for each section
â€¢ How the statement of cash flows can indicate the financial health of a company
â€¢ Be able to evaluate a companyâ€™s cash flows from operating, investing, and financing activities and make conclusions on the financial success of the company.
Chapter 13 Topics
â€¢ Definition of debit and credit
â€¢ Which accounts increase with debits?With credits?
â€¢ How to analyze and record transactions (which accounts, increasing or decreasing, debit or credit)
o You will see multiple transaction analysis and journal entry problems on the exam.You should understand how accounting events impact the accounting equation and financial statements.
â€¢ Purpose of the general ledger