1.) Define accounting. Chapter 1 2.) What is the accounting equation? Define assets, liabilities and stockholder's equity. Chapter 1 3.) Define and discuss the 3 basic forms of ownership: sole proprietorship, partnership, corporation. Chapter 1 4.) What is the net income formula? Chapter 1 Define revenues and expenses. 5.) Calculate current ratio and working capital. (Chapter 2) 6.) Define current assets. What accounts are current assets? (Chapter 2) 7.) What are the 3 things that affect retained earnings? (Hint: What is the retained earnings formula?) 8.) Compare and contrast Cash vs. Accrual Basis Accounting, specifically, when are revenue and expenses recorded under each? 9.) What is the Balance Sheet formula? Is the balance sheet prepared for a period of time or at a point in time? 10.) List the 3 parts of the T-account \& be able to calculate the balance in an account (Chapter 2). Define debit and credit? 11.) What are the 9 steps of the accounting cycle? Chapter 3 12.) Journalize the collection of revenue in advance. Chapter 3 13.) 4 Why do we make adjusting entries? Chapter 4 14.) Journalize adjustments Chapter 4 a. HINT: (4 types of adjusting entries and the basic entry format) 15.) What are the closing entries? What are permanent accounts? What are temporary accounts? Chapter 4 16.) 5 Calculate gross profit. Define net sales, gross profit. How is net sales calculated? Chapter 5 17.) Journalize sale of inventory. ( 2 journal entries, one for the sale, one for COGS \& Inventory, look back to Chapter 5 homework for journal entries) 18.) Calculate inventory turnover. (Chapter 5) 19.) What does FOB mean? What does FOB shipping point mean? FOB destination? Chapter 5 \& 6 20.) What does 2/10,n/30 mean? Chapter 5 ; ANS: 2% discount if paid within 10 days, otherwise the net amount is due in 30 days; What is the journal entry for the collection of an account receivable within the discount period after a return was previously made? (Look at your Chapter 5 homework) 21.) Multi-step income statement formula: What are the steps for how net income is calculated on the multiple-step income statement? Chapter 5 Hint: 1 . Subtract cost of goods sold from net sales to determine gross profit. 2. Deduct operating expenses from gross profit to determine income from operations. 3 . Add or subtract the results of activities not related to operations to income from operations to determine net income. 22.) Calculate payments of invoices with a discount \& return Chapter 5 HINT: Subtract the return and then calculate the discount 23.) Calculate ending inventory \& COGS Chapter 5&6 Hint Know this formular Beginning Inventory + cost of goods purchased = cost of goods avallable for sale - ending imventory = cost of goods sold 24.) 2 types of inventory systems Chapter 5 periodic and perpetual; define. 25.) Inventory valuation FIFO, LIFO \& AVG Cost (Review Chapter 6 HW) 26.) Define internal control Chapter ? 27.) What are Intemal control procedures? Chapter? 28.) What are the bank reconciliatioa steps? Hint: What gets addedidedocted from book balance? What gets added/deducted to bank balance? Chapter 7 29.) What are limitations of intermal control? Chapter 7 30.) Define and discuss SOX. 31.) Difference between A/R and N/R Chapter 8 32.) Calculate the amount of adjustment for writing off accounts Chapter 8. Under the allowance method, when is bad debt expense recorded? What is the joumal entry? 33.) How is accounts receivable valued on the balance sheet? (Hint: Is there a contra-anset?) Chapter 8; Define net ralizable value 34.) What type of account is the allowance for doubcful accounts? Chapter 8 35.) Calculate maturity value & interest on notes receivable. Chapter 8 36.) How do you get the cost basis of property plant & equipment? Chapter 9 Discuss the historical cost principle. 37.) Calculate depreciation SL, units of activity and declining balance methods. Chapter 9 38.) Define intangible assess. Chapter 9 What are examples of intangible assets? 39.) Define property, plant and equipment. What accounts appear under this canegory on the balance sheet? 40.) Calculate book value: Chapter 9 (Hint: cost minus accumulated depreciation) 41.) Calculate gains and losses on sale of plant asset: (Hint: Cash received miners the book value = gain (loss) Chapter 9 42.) Ordinary repair vs. capital expenditure (discuss, Chapter 9) 43.) Calculate interest on note payable. (Him: interest = principle * rate * time) Chapter 10 (note: time is al ways calculated out of 360 days or 12 month, depending on the terms of the note) 44.) What are the 2 classifications of tiabilities? Chapter 10 What are examples of curreat liabilities? Long-term liabilities? 45.) What are bond characteristics? Chapter 10 Define: callable bonds, convertible bonds, bond indenture, secured bonds, bond debenture 46.) Calculate the proceeds from issuance of bonds at face value, a premium and a discount. Chapter 10 47.) Describe the amortization of bond premiums \& discounts, Chapter 10 48.) Calculate gains \& losses from bond redemption. Chapter 10 49.) How is stockholder's equity presented and calculated on the balance sheet? Chapter 11 50.) Define dividends. What type of account is dividends? What is the normal balance of dividends? (Chapter 11) What are the 3 important dates for dividends and whar happens on each date? When is a dividend a binding legal obligation? Is there a journal entry required on the date of record? 51.) Stock characteristics (Chapter 11) - common stock vs, preferred stock characteristics 52.) Calculate dividends based on stock characteristics. (Hint: Calculate dividends paid to preferred vs. common shareholders when the preferred shares are cumulative vs. non-cumulative and there are dividends in arrears). Chapter 11 53.) What are the effects of dividends on retained earnings? 54.) What are stock splits? How do stock splits impact the accounting equation? 55.) What are the journal entries for dividends on the date of declaration, the date of record and the date of payment? Hint: No journal entry is made on the date of record. Chapter 11 56.) 3 terms for number of shares of stock: authorized vs, issued vs, outstanding; define each. Chapter 11 57.) 3 activities for cash flow \& what goes in each (operating, investing, financing) Chapter 12 58.) 4 adjustments to Net Income to arrive at Net Cash Provided (Used) by Operating Activities (indirect method) Chapter 12 59.) Determine Net Cash Provided/Used by Operating Activities by Converting Net Income from an Accrual Basis to a Cash Basis. Chapter 12