Principles of Financial Accounting -Review - Chapter 1-3 The test will consist of multiple choice and problem. You will have 50-55 minutes to complete the exam so make sure you know the material very well. You are responsible for text material as well as any items discussed in class. O O O O O O O Types of accounting information - what are they and what are they used for Different users of accounting information Basic function of accounting Objectives of financial reporting and managerial accounting information What are the basic financial statements and what do they tell you What if the FASB and what do they do What is GAAP What does the SEC do What are the more important provisions of the Sarbanes-Oxley act What is a CPA and what do they do? What is the code of professional conduct What is the business entity concept What is the cost principle, going- concern assumption, objectivity principle, stable-dollar assumption What is the accounting equation and what are its components Know the effects of transactions (assets go up or down, etc) (1) Know how to prepare an income statement Know the three sections of the cash flow statement and what goes in each section In which section of the cash flow statement are positive cash flows most beneficial Forms of business organizations Need for adequate disclosure and how is it fulfilled What is the accounting cycle What is a journal, a ledger Know your debit and credit rules What is retained earnings and how does it increase or decrease Realization principle, matching principle, accrual basis of accounting What is a trial balance and what does it tell you Be able to record entries.

Principles of Financial Accounting - Review - Chapter 1-3 The test will consist of multiple choice and problem. You will have 50-55 minutes to complete the exam so make sure you know the material very well. You are responsible for text material as well as any items discussed in class. - Types of accounting information - what are they and what are they used for - Different users of accounting information - Basic function of accounting - Objectives of financial reporting and managerial accounting information - What are the basic financial statements and what do they tell you - What if the FASB and what do they do - What is GAAP - What does the SEC do - What are the more important provisions of the Sarbanes-Oxley act - What is a CPA and what do they do? - What is the code of professional conduct - What is the business entity concept - What is the cost principle, going-concern assumption, objectivity principle, stable-dollar assumption - What is the accounting equation and what are its components - Know the effects of transactions (assets go up or down, etc) - Know how to prepare an income statement - Know the three sections of the cash flow statement and what goes in each sectio - In which section of the cash flow statement are positive cash flows most beneficial - Forms of business organizations - Need for adequate disclosure and how is it fulfilled - What is the accounting cycle - What is a journal, a ledger - Know your debit and credit rules - What is retained earnings and how does it increase or decrease - Realization principle, matching principle, accrual basis of accounting - What is a trial balance and what does it tell you - Be able to record entries