ACCT CB101 Final Exam Review (OCR) December 2024 PDF

FINAL EXAM REVIEW Chapters 4, 5 & 13 Exam Date: Wednesday December 11, 2024  Final Exam Details Wednesday DECEMBER 11th at 9:00am – 11:00am Room C231 / C233 Approx. 45-50 multiple choice questions at 1 mark each 2 problems with a total of approximately 50...

FINAL EXAM REVIEW Chapters 4, 5 & 13 Exam Date: Wednesday December 11, 2024  Final Exam Details Wednesday DECEMBER 11th at 9:00am – 11:00am Room C231 / C233 Approx. 45-50 multiple choice questions at 1 mark each 2 problems with a total of approximately 50 marks Total Exam = 95 marks THE FOLLOWING REVIEW are HIGHLIGHTS of what may be on the test. You are responsible for anything in the Chapters that we have covered.  CONTENT CHAPTER 4 - ADJUSTMENTS Why are Adjustments necessary? Difference between Accrual & Deferral Adjustments Review the Accounting process – what are the steps before and after Adjustments? Review the Financial Statements prepared from the Adjusted Trial Balance especially Balance Sheet (Book value of Fixed Asset) & Statement of Retained Earnings Review the NEW accounts introduced this chapter : Some examples: Accumulated Depreciation (Contra-Asset Account) – keeps track of the total amount of the Fixed Asset like Equipment or Building has been used up over time. Depreciation Expense (Expense account) to record amount of Equipment that has been used up during the period only. Interest Revenue, Interest Payable Interest Expense, Income Tax Expense (how is this calculated?) Dividends Declared & Dividends Payable  CONTENT CHAPTER 4 - ADJUSTMENTS Review ALL different types of Adjustments –Powerpoint Notes i.e. How is Equipment adjusted Depreciation Expense & Accumulated Depreciation (Contra-Asset Account) Identify the TIME PERIOD for the adjustment and match the information you have been given in the question. I.e. Are you given information about a 6 month policy but adjusting for 1 month? Complete the necessary calculation. Adjusted Trial Balance – accounts are listed with their “Normal” Balance of DEBIT or CREDIT. Classified Balance Sheet – calculate BOOK value of Equipment or Building, etc. How do Dividends affect Statement Of Retained Earnings? CLOSING PROCESS – which accounts are closed?  CHAPTER 4 – KNOW YOUR DEBITS & CREDITS!! https://www.youtube.com/watch?v=j71Kmxv7smk Dividends +- +-  CHAPTER 5 – Fraud, Internal Control & Cash The Fraud Triangle – Incentive, Opportunity, Rationalization Key requirements of the Sarbanes-Oxley Act Five Common Principles of Internal Control – Bank Reconciliation – reconciling Company’s Cash Account with Company’s Bank Statement Deposits in Transit, Cheques Outstanding, NSF cheques, Bank Service charge, EFT, Interest, Error Correction, etc. What journal entries are required? Anything that affected the CASH Account in our Books & Records. What is the CASH amount on the Balance Sheet after bank reconciliation?  CONTENT CHAPTER 13– Financial Ratios Horizontal Analysis = (Current Year-Prior Year) / Prior Year Vertical Analysis Income Statement – Use NET SALES (or Sales) as denominator Balance Sheet – Use TOTAL ASSETS as denominator Ratio Analysis – Formulas provided on ratios but you need to know which ratios measure which of the following categories: Profitability Liquidity Solvency Know how to calculate the ratios and what they mean. Multiple Choice – Significant value  Test Taking Strategies: Some STUDY in advance.tips to There are consider: many resources available to you in our course. TRY to Breathe (Deep Breaths) and Relax before you get started. YOU GOT THIS!!!! IF you like to do your problems first – go to Complete the ones you know best first as this builds confidence and you will move along at a good pace. Complete the remaining problems to the best of your ability – not leaving any blanks unless you clearly do not know the answer. WATCH your time. After one hour or so – you should probably move on to the multiple choice questions as these are also worth 50 marks. Multiple Choice – They are all worth ONE mark each so do not spend too much time on one question that is giving you difficulty! Good luck!