Study Tips for the Final ExamGB 112

Fall 2013

General Information about the Final Exam

The exam will be held Saturday, December 14, 2013, from 11:30 a.m.-1:30 p.m. Room assignments will be announced in class and will be posted on the GB112AllSections blackboard site and on the door of the Department of Accountancy (AAC 208). Please find out your room assignment ahead of time so there will be no confusion the day of the exam.

You will need to use a number two pencil for the exam.

Please bring a sufficient number of sharpened pencils with you.

Also bring a financial calculator, but one that is not text-capable

Please bring a photo ID.

You will not be allowed to share a calculator with another student and will not be allowed to use any text-capable technologies, including cell phones, smart phones or any other similar device.

The proctors will not have calculators or pencils.

Arrive early so the exam can start on time.

Do not bring backpacks or large book bags to the final examination. Space to store such items may be limited in some rooms.

Proctors will not answer questions during the exam.

The exam will consist of 20 multiple choice questions, 5 problems and 2-3 short essay questions.

Topics to Study

Classes 1 -2 learning objectives

Be able to list and explain the objectives of a business

Be able to list and explain the major functional areas of a business

Understand the term “stakeholder” and be able to list the major stakeholders of a business

Be able to explain the different types of business organizations and to discuss the advantages and disadvantages of each

Classes 3-4 learning objectives

Be able To explain why companies need money

Be able To define and explain the differences between debt and equity, including advantages and disadvantages of each

Be able To explain the differences between preferred and common stock

Be able To explain the differences between private and public sources of debt and equity

Be able To explain the terms IPO and SEO

Be able To explain the difference between primary and secondary markets

Understand the role of the SEC in overseeing securities and the role of rating agencies.

Know the different sources of financing such as angel investors and venture capitalists.

Understand the relationship between risk and return

Be able to compute a dividend yield, capital gains and total return for a one year holding period

Be able to compute market capitalization

Classes 5-9 learning objectives

Understand the Importance of TVM and time lines

Define and compute using financial calculator

o FV of lump sum

o FV of an annuity

o PV of lump sum

o PV of an annuity

o Payment

o Rate

o Number of Periods

Understand and be able to manually prepare an Amortization schedule with up to five payments and determine how much is owed on a loan after a specific number of payments with a financial calculator

Compute the value of a bond with semi-annual interest payments

Compute the value of a zero-coupon bond

Compute yield to maturity

Know the four primary reasons that businesses fail, including insufficient cash

Be able to discuss the importance of cash flows and cash flows forecasting

Be able to compute the PV of uneven cash flows

Class 11 learning objectives

Understand the accounting equation.

Be able to list and describe the four basic financial statements.

Be able to define and give examples of the financial statement elements.

Understand the concept of articulation.

Class 12 learning objectives

C ompare cash and accrual accounting, and be able to define and illustrate accrual accounting.

Know the generally accepted accounting principles of financial reporting (such as relevance, faithful representation, revenue recognition expense recognition, entity assumption, etc.).

Define and explain the acronym IFRS and understand the current position of the U.S. regarding the use of IFRS

Classes 13-17 learning objectives

Compare cash and accrual accounting, and be able to define and illustrate accrual accounting.

Be able to create a classified balance sheet, an income statement and a statement of retained earnings in good form.

Be able to conduct transaction analysis (given a business transaction know how it affects the accounting equation and the financial statements).

Know the generally accepted accounting principles of financial reporting (such as relevance, faithful representation, revenue recognition expense recognition, entity assumption, etc.).

Define and explain the acronym IFRS and understand the current position of the U.S. regarding the use of IFRS.

Be able to prepare journal entries in good form and record transactions in T accounts.

Be able to identify a normal balance for an account.

Understand how a chart of accounts is constructed.

Classes 19-20 learning objectives

List and explain the objectives and components of a system of internal control

Be able to give examples of internal control strengths and weaknesses and relate those examples to internal control objectives. Include specific references to Sage.

Know what an AIS is and what it does and be able to explain the difference between data and information.

Be aware of the major provisions of the Sarbanes-Oxley Act.

Understand the responsibilities of independent external auditors and the differences between their responsibilities and the responsibilities of management.

Classes 21-23 learning objectives

Understand the concept of accrual accounting, including the expense recognition and revenue recognition principles.

Understand why we need adjusting entries.

Be able to prepare adjusting entries for the following types of adjustments:o Accrualso Deferralso Depreciationo Uncollectible Accounts Expense

Class 24 learning objectives

Understand the use of and need for a trial balance.

Understand the closing process.

Be able to prepare an adjusted balance sheet, income statement and statement of retained earnings in good form.

Classes 25-26 learning objectives

Be able to compute the cost of inventory using different acceptable methods and to interpret the impact of these inventory methods on the financial statements.

Understand the differences between fraud and earnings management.

List and explain the components of the fraud triangle.

General Suggestions

Your studying should include:

All class notes, including the demonstration of the SAGE system and the visits from Ernst & Young professionals.

The Course Project assignment. All assigned homework problems and class exercises. All assigned readings, including the IN and the TF cases.

CHECK FOR SPECIAL ACELAB AND ECO-FI-STATS LAB HOURS

CHECK FOR FACULTY QUESTION AND ANSWER SESSION TIMES