BUAC-2010 STUDY GUIDE FOR FINAL EXAM
Study the accounting concepts: matching, cost, revenue recognition, consistency, business entity
Three types of businesses: Three types of business organizations---advantages and disadvantages of each type of organization;
Rules of debits and credits; classification of accounts; what an account is; what a journal is; what a ledger is; what a chart of account is;
Normal balances of each type of account; increase and decrease side of each type of account
Accrual basis and cash basis accounting
Current assets, long-term or fixed assets: current liabilities and long-term liabilities;
4 basic financial statements; what accounts go on them
Two types of inventory systems and the difference between them; calculating inventory and journal entries differences
Inventory costing flows: FIFO and LIFO; average costing and specific identification
Bank reconciliation: know the major reconciling items that we deal with and where they go on the bank reconciliation; what the term cash includes:
Corporation advantages and disadvantages; what the stockholders’ equity section of the balance sheet consists of; dividends—what they are; what is needed before they can be declared: three dates and why the dates are important;
Statement of cash flows: what it is; what it consists of –three sections and what goes into those sections
There will be 15 terms from everything we have covered—you will be give 15 definitions and asked to identify each from a list of terms I give you.
Problems: one will be journal entries for stocks; one will be a dividend problem: and the last will be a list of transactions and you will have to tell what section of the cash flow statement they should go