PRINCIPLES OF ACCOUNTING I
 ACCT 1010
 TEST INFORMATION - Test 1

Chapters Covered:  1 - 4
Deadline:  Feb 20, 2013

Important Note
Exam problems are hand written.  It is suggested that you practice working problems by hand.  Complete the B Problems suggested below and/or print the Connect problems, work them by hand, then check your answers by entering the information in Connect. This method will best prepare you for your exam experience.
Components
  Multiple Choice (approximately 25% of total points)
 
  • Questions covering concepts and terms from the first four chapters.
  • Some questions will be straightforward "definition-type" questions while others will require multi-level thinking.  Some of the multiple choice questions require problem-solving. 
  Identification (approximately 30% of total points)
 
  • Be prepared to identify the account type (asset, liability, owner's equity, revenue, expense, or contra-) and normal balance (DR or CR) of various accounts covered in these chapters.
  • Be prepared to identify whether or not a particular account would be closed at the end of the fiscal period.
  Problems
 
  • Prepare the three basic financial statements from a list of accounts and balances.  Use the classified balance sheet format and good form on all statements. (24 points)
  • Journalize various business transactions (12 points)
  • Journalize adjusting entries (12 points)

All working papers are provided for you.
  Critical Thinking Assessment
 
  • Open-book Connect assignment to be completed at home
  • Follow the instructions sent out by your instructor for the open-book critical thinking question (10 points)
  • If you take your exam before receiving the instructions from your instructor, please email requesting them
Are You Ready?
  PTake the Interactive Quizzes provided by McGraw-Hill on the Text Website.  Work these quizzes until the quiz score reflects your desired grade.
 
  PWork the review problems in Connect for Chapters 1-2 & Chapters 3-4.  If you successfully complete this review, it may be used as a bonus homework grade but is not required work.  Note:  Exam problems are hand written.  It is suggested that you print the Connect problems, work them by hand, then check your answers by entering the information in Connect. This method will best prepare you for your exam experience.

PWork the following problems by hand without your text or notes.  Check your answers against the B Problem Solutions. 
 
  • 2-1B
  • 3-1B
  • 3-3B
  • 4-1B
  • 4-2B
  • 4-4B

NOTE:  The recommended problems are only study suggestions.  The problems on the exam will not necessarily look exactly like the suggested problems.  The fact that you may not see a recommended sample problem does not indicate that the material will not be on the exam in some form.  Be sure to study all the requirements listed in the chapter objectives. 
The following Objectives will be Assesses on Test 1:
  Chapter 1
 
  • Explain the purpose and importance of accounting
  • Identify users and uses of accounting
  • Explain the following Generally Accepted Accounting Principles
    • Objectivity Principle
    • Cost Principle
    • Going-Concern Principle
    • Monetary-Unit Principle
    • Revenue Recognition Principle
    • Business Entity Principle
  • Define the Accounting Equation
  • Identify the five types of accounts
  • Analyze business transactions
  • Prepare basic financial statements
  Chapter 2
 
  • Explain the Steps in Processing Transactions
  • Describe Source Documents and Their Purpose
  • Describe an Account and its use in Recording Transactions
  • Describe a Ledger and a Chart of Accounts
  • Define Debits and Credits and Explain their Role in Double-entry Accounting
  • Record Transactions in a Journal and Post Entries to a Ledger
  • Prepare and Explain the use of a Trial Balance
  • Prepare Financial Statements
  Chapter 3
 
  • Explain the Importance of Periodic Reporting and the Time Period Principle
  • Explain Accrual Basis Accounting
  • Identify the Types and purposes of adjusting entries
  • Prepare Adjusting Entries
  • Prepare Financial Statements from an Adjusted Trial Balance
  Chapter 4
 
  • Identify the steps in the accounting cycle
  • Identify the accounts that are closed each accounting period and prepare a post-closing trial balance
  • Explain why temporary accounts are closed
  • Prepare closing entries
  • Identify the parts of a classified balance sheet and prepare a classified balance sheet
  • Prepare a work sheet and explain its usefulness