ACCT 2110 Exam 1 Study Guide
1. Know the 3 types of Businesses
2. Know the differences between the 3 types of Businesses
3. Know the three types of Business Activities
4. Know the 4 Basic Financial Statements
5. Know what the GAAP, SEC, FASB, IASB, IFRS stand for and what they do
6. Know how to apply the Fundamental Accounting Equation
7. Know what are considered assets, more specifically – current assets, longterm investments, PPE, and intangible assets
8. Know what are considered liabilities, more specifically – current liabilities and longterm liabilities 9. Know what are considered stockholders’ equity
10. Make a Balance Sheet for Cavernous Homes Inc. at December 31, 2013 from the given information
An analysis of the transactions of Cavernous Homes Inc. yields the following totals at December 31, 2013: cash, $3,200; accounts receivable, $4,500; notes payable, $5,000; supplies, $8,100; common stock, $7,000; and retained earnings, $3,800
11. Know the two measures of liquidity
12. Know how to calculate working capital
13. Know how to calculate current ratio
14. Know the elements of income statements – specifically revenues, expenses, and net income 15. Make a Single Step Income Statement from the given information
An analysis of the transactions of Canary Cola Inc. for the year 2013 yields the following information: service revenue, $78,000; supplies expense, $33,200; rent expense, $20,5000; and dividends, $7,000
16. Make a Multiple Step Income Statement from the given information in the last question 17. Know how to calculate Net Profit Margin and what it means
18. Make a Retained Earnings Statement from the given information
Parker Company has a balance of $35,000 in retained earnings on January 1, 2013. During 2013, Parker reported revenues of $82,000 and expenses of $55,000. Parker also paid a dividend of $8,000.
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19. Know the 3 types of cash flow and what are considered cash inflows and outflows for each type 20. Know the qualitative characteristics of GAAP
21. Know the assumptions of GAAP
22. Know the principles of GAAP
23. Know the 7 steps of the accounting Cycle
24. Be able to apply the Expanded Accounting Equation
25. Perform Transaction Analysis with the given information
a. Issued common stock ito investors in exchange for $30,000 cash
b. Borrowed $10,000 cash from First State Bank
c. Purchased $3,000 of supplies on credit
d. Paid for the purchase in Transaction c.
26. Know what doubleentry accounting is
27. Know what Taccounts are and how to apply them
28. Show the effects on Debit and Credit from the following transactions
a. Purchased office supplies on credit for $1,500 from Office Depot
b. Paid the $15,000 principal pluse $600 interest on a note payable
c. Provided $65,300 of service on credit
d. Provided $15,400 of service for cash
29. Know how to make a journal entry
30. Make a journal entry from the following information a. June 1: Issued common stock to several investors for $100,000 b. June 8: Purchased equipment for $16,800
c. June 15: Made cash sales of $23,200 to customers We also discuss several other topics like What is the outer shell of the brain?
d. June 29: Paid a $4,500 dividend to stockholders
31. Know what a general ledger is
32. Know what a trial balance is
33. Prepare a trial balance with the following information
Service Revenue $23,150 Cash 12,850 Accounts Payable 2,825 Common Stock 15,000 Rent Expense 2,400
Dividends $1,500 Salaries Expense 4,300 Equipment 12,725 Accounts Receivable 5,700 Advertising Expense 1,500
34. Answer the questions with the information given
The accountant for Tiger Corporation prepared the following list of account balances from the company's records for the year ended December 31, 2016.
Glenn Corporation had the following list of account balances for the year ended December 31, 2016. If you want to learn more check out In social interaction, what is the meaning of self?
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Net Sales $2,000,000 Cash $382,000 Accounts Receivable 120,000 Income Taxes Expense 196,000 Equipment, net 420,000 Common Stock 350,000 Accounts Payable 120,000 Interest Revenue 20,000 Operating Expenses 650,000 Cost of Goods Sold 800,000 Inventories 220,000 Interest Expense 10,000 Salaries Payable 50,000 Prepaid Rent 10,000
Notes Payable 200,000 Dividends 5,000 We also discuss several other topics like In diameter, how big is the milky way?
Retained Earnings, January 1, 2016
1. Calculate Total Assets on December 31, 2016.
2. Calculate Income from Operations for the year ending December 31, 2016. 3. Calculate Ending Retained Earnings on December 31, 2016. 4. Calculate the Current Ratio on December 31, 2016.