ACCT 3311 Fall 2008 Study Guide Final Page 1 of 3 The final exam will be given at five different times on four different days. I will be expecting you during the time you signed up for the exam. If you did not sign up for a time, I will expect you on the date and time scheduled for the section in which you are enrolled. Seats will be assigned. Paper will be provided to you, You should bring pencils, erasers, and calculators. You will not be allowed to have food or drink on the table. Cell phones should be turned off and put away out of sight. All notes should be out of sight. Students are not permitted to take anything out of book bags or items on the floor without permission from the instructor. You must avoid any appearance of cheating or improper conduct. This includes talking to fellow students or directing your eyes at their paper. The final exam will be a comprehensive exam. Expect multiple choice and problems similar to those in the workbook. Chapters 1-2 • Expect multiple choice questions from these chapters. • Study outline on pages 1-1 to 1-3 of the workbook and related material in the text. • Illustration 2-2 on page 32 of the text is an excellent review of accounting qualities. • Know definitions of the elements of financial statements on page 35 of the text. Concentrate on assets, liabilities, revenues, expenses, gains, and losses. • Study historical cost principle, revenue recognition principle, and expense recognition principles (matching, systematic and rational allocation). • Study exercises E2-1, 2-2, 2-3, and 2-4 in the text. • What roles do FASB, SEC, and AICPA have in the standards setting process. Chapter 3 • Be able to prepare basic journal entries such as ones in examples 1 and 10 in the student workbook and those described in the project. • Be able to prepare adjusting entries such as those in examples 4, 5, and 8 in the student workbook. • There will be no questions on reversing entries. • Be able to prepare closing entries. • Be able to prepare an income statement, retained earnings statement, and balance sheet from an adjusted trial balance. Example 15 in the student workbook is a good example. • Study appendix 3A on cash to accrual and accrual to cash. Study examples 11-14 and 21 in the student workbook. • There will be no questions on appendix 3B or 3C. Chapter 6 • Be able to compute the issue price of bonds given the maturity value, years to maturity, stated interest rate, and effective interest rate. Be able to prepare the related amortization schedule. Related workbook examples: 16,17,25, and parts B1 through B4 of example 32. • No questions on problems computing future amounts in funds given a set of deposits. Do not study these related workbook examples: 2,7,8,11,28. • Be able to work problems involving asset sales and acquisitions with long term notes.. Related workbook examples: 13,14,15,23, 24, and parts A1 through A3 and A7 of example 31. • No questions on fund deposit-withdrawal problems. Related workbook examples: 19,20,21, and part C6 of example 33. • No questions on solving for interest rates. Related workbook examples: 6,22,29, and parts C8, C9, and C10 of example 33. ACCT 3311 Fall 2008 Study Guide Final Page 2 of 3 Chapter 4 • Be able to prepare an income statement in good form which contains irregular items described in illustration 4- 12 on page 142 of the text. • Be able to prepare a retained earnings statement with a prior period adjustment for an error made in a prior period. Illustration 4-18 on page 146 of the text is a good example. • Examples 1, 3, and 4 in the student workbook would be good review problems. • No questions on comprehensive income or the statement of stockholders’ equity. Chapter 5 • Be able to prepare a balance sheet in good form. Example 1 on page 5-2 of the student workbook would be a good review problem. • Be able to prepare a cash flow statement similar to examples 2 through 6 of the student workbook. Chapter 7 • There will be no questions on cash (pages 314 to 318). • There will be no questions on bank reconciliations (appendix 7A). • There will be no questions on disposition of accounts and notes receivable (pages 332-337). • Accounts receivable - know journal entries, balance sheet presentation, income statement effects. Direct write off method vs. allowance method. Balance sheet approach vs. income statement approach for bad debt expense. Know how to handle write-offs and collection on accounts written off in prior periods. Study examples 3 through 7 and example 11 in the student workbook. • Notes receivable. Basic present value computations, non interest bearing notes, notes with unreasonable interest rates. Study examples 2, 8, 9, and 10 in the student workbook. Chapter 8 • Study pages 368-380 of the text: classification of inventories, periodic vs. perpetual inventory systems, physical goods included in inventory, effects of inventory errors, costs included in inventory. • Know how to compute ending inventory under LIFO, FIFO, and average cost. • Know how to use the dollar value LIFO method. • Be able to work all examples in the student workbook except for example 2. Chapter 9 • Study the rules for lower of cost or market on pages 422-429 of the text. Study example 1 in the student workbook. • Know how to account for lump sum (basket) purchases. Study example 2 in the student workbook. • Study accounting for purchase commitments. Study example 3 in the student workbook. • Know how to use the gross profit method of estimating inventories. Study examples 4 and 5 in the student workbook. • Know how to use the retail inventory method. Study examples 6, 7, and 8 in the student workbook. • Study appendix 9A, LIFO retail methods, and examples 9 through 12 in the student workbook. ACCT 3311 Fall 2008 Study Guide Final Page 3 of 3 Chapter 10 • Study pages 472 to 474 in the text and example 5 on page 10-2. • Study interest capitalization and be able to work examples 8 and 14 in the student workbook. • Study deferred payment contracts on pages 481-482 of the text and examples 1, 3, and 4 in the student workbook. Be able to do present value computations and prepare amortization schedules. • Study lump sum purchases on pages 482-483 of the text and be able to work example 2 in the student workbook. • Study acquisitions by issuing stock on page 483 of the text. • Study pages 484 to 489 of the text on nonmonetary exchanges. Be able to work example 6 in the student workbook. • Study pages 491 to 494 of the text on accounting for costs after acquisition. • Study rules for disposition of plant assets on pages 495 and 496 of the text. Chapter 11 • Know how to compute depreciation using straight line, double declining balance, and 150% declining balance. • No questions on sum of years digits and MACRS. • No questions on group or composite depreciation methods. • Know how to account for changes in estimates used in depreciation computations. • No questions on depletion. • Know the impairment rules for long lived assets – property, plant and equipment. • How do we account for assets held for sale? • When do we record restoration of impairment losses? • Be able to account for sale of depreciable assets. • Study examples 1 and 5 through 14 in the workbook. • Chapter 12 • Know how to value intangibles. • Be able to distinguish between limited life intangibles, indefinite life intangibles other than goodwill, and goodwill. When do we record such assets? • Know impairment rules for intangibles – all three types. • When do we amortize intangibles? • How do we account for R & D expenditures? What costs are capitalized for patents? • No questions on accounting for software development costs. • Study all examples in the workbook except example 8.