accouting test

I will put this document in Modules - Final Review Material from class

The final exam covers chapters 9-13 with most material from chapters 9-12. The exam will contain many short problems that may be in a multiple-choice form or in the form of our homework problems. It will also contain some conceptual questions, but the exam questions are primarily problem-solving.

The questions can be drawn from any part of the chapters covered except where I indicate something will not be on the exam. However, I list some areas we focused on below:

Ch 9 Cost of Plant Assets, Calculating Depreciation including the methods in Appendix 9A, Disposal of Plant Assets, Intangible Assets,

Ch 10 Liabilities - Notes payable and payroll and payroll tax journal entries. Also, issuance of bonds, including bonds at a discount or premium. Redeeming Bonds, Amortization of Bond Discounts or Premiums. Liquidity and Solvency. Appendix 10C is not covered and not on the final. Appendix 10A and 10B should be reviewed to ensure understanding of amortization, but there will not be a problem-solving question from those two appendices.

Ch 11 Stockholders equity – Issuance of common stock, preferred stock. Know how to do with par value stock or stated value. Also, journal entry for buying Treasury Stock. Stockholders Equity section of the balance sheet. Cash Dividends. Stock Dividends and Stock Splits. Preferred Stock Dividend Preferences. Retained Earnings, Analysis of Stockholders Equity, Debt Versus Equity Decision. The Appendix 11A will not be on the exam.

Ch 12 The Statement of Cash Flows, Indirect Method of Preparing Statement of Cash Flows, Free Cash Flow. Appendix 12A and 12B will not be on the exam.

Ch 13 Sustainable Income, Comprehensive Income and unrealized gains and losses, Discontinued Operations, Horizontal Analysis, Liquidity, Solvency and Profitability Ratios in Appendix 13A. We should understand which ratios are liquidity ratios, which are solvency ratios, etc.

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