Exam #1 Study Guide – FIN300 Spring 2026 Hybrid
This is a study guideONLYand isONLY meant to assist you in preparation for
Exam #1.
Hello, Exam #1 is scheduled for February 2nd, 2026. It is online through Respondus lockdown
Browser and it is being monitored. The quiz will be open starting at our regular class time 3:00
PM and will be open until 11:59 PM. Once you start it, you have only 75 minutes to complete it.
The exam will time out at 11:59 PM. The Exam may be taken remotely, you do not have to
attend the classroom to take it, however, I will be in the classroom during our regular class
time, 3:00 - 4:15 PM.
It is multiple choice with math. It covers textbook Chapter 1 “The Financial Manager and the
Firm”, Chapter 2,” The Financial System and the Level of Interest Rates”, Chapter 3 “Financial
Statements”, and part of Chapter 4 “Analyzing Financial Statements”. You should have also
viewed the appropriate videos for those chapters. Also, read the assigned article posted on
Canvas “Compilation, Review and Audited” – it is in the PowerPoints and Other Important
Articles section of Modules. I reserve the right to ask additional questions from all material
covered in class and assigned as reading and viewing.
You may use One 4-inch by 6-inch index card, front and back, with your notes on that card. You
may use a calculator (NOT your cell phone calculator). No other notes or sources of
information. NO CELL PHONES or other electronic devices. You may use two pieces of scratch
paper for your claculations.
If you experience technical difficulties, contact the ASU Help Desk. The Help Desk is open 24 x
7, 365 days. Call 1-855-278-5080. To start a chat, go to http://my.asu.eduLinks to an external
site. and click the Service Center tab. In the Immediate assistance section, click the Live Chat
button. Do Not contact me with technical issues, only because I cannot help you with them.
Thank you.
Know the following terms, examples and math:
Chapter 1
Stakeholder – definition and some examples.
Productive assets – definition.
Capital budgeting and its 3 fundamental decisions.
Capital markets – definition and some examples.
Net working capital – definition and formula. Know how to do the MATH.
Current assets and Current liabilities – definitions and some examples.
Corporation- definition, pros and cons.
The goal of the firm – according to our book.
Chapter 2
Financial assets and real assets – definitions and some examples.
Primary market and Secondary market – definitions and some examples.
Marketability and Liquidity – definitions.
Money markets and Capital markets – definitions and some examples.
Initial Public Offering (IPO) – definition.
Real rate of interest, Nominal rate of interest, inflation – definitions.
The Fisher equation – Know how to do the MATH.
Chapter 3
Fundamental Accounting Principles
Balance Sheet – Definition and the Basic Balance Sheet Identity Formula
Current Assets & Current Liabilities – Definitions and their order on the Balance Sheet
(MATH)
Net Working Capital – Definition and formula (MATH)
Long-term Assets & Long-Term Liabilities - Definitions and their order on the Balance
Sheet (MATH)
Equity – Definition and where it belongs on the Balance Sheet
Know How to Construct a Balance Sheet, given the Assets, Liabilities and Equity. (Similar
to the Posted Homework Assignment). (MATH)
The Income Statement – Definition & the Basic Equation for the Income Statement.
Dividends declared vs. Interest Expense – Which is tax deductible? Unequal treatment
of Dividends and interest payments.
Corporate Income Tax rates.
Chapter 4
Financial statement analysis – Definition.
Trend analysis – Definition.
Benchmark – Definition.
Financial ratio – Definition.
Common-size Financial Statements – You will not be required to prepare one but you do
need to know the definition, concept, and what you divide by in the balance sheet and
income statement.
Current ratio – Know the definition and formula. (MATH)
Quick ratio – Know the definition and formula. (MATH)
Inventory Turnover and Days’ Sales in Inventory – Know the definitions and formulas.
(MATH)
Accounts Receivable Turnover and Days’ Sales Outstanding – Know the definitions and
formulas. (MATH)
