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Components |
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Multiple
Choice (approximately 20% of total points) |
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- Approximately 20 questions covering
concepts and terms of chapters 15-16
- Some questions will be
straightforward "definition-type" questions
while others will require multi-level thinking.
Some of the multiple choice questions require
problem-solving.
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Identification (approximately
10% of total points) |
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- Identify whether an
activity would be reported in operating,
investing, or financing activities on the
statement of cash flows.
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Problems |
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- Journalize various
transactions relating to investments in trading,
available-for-sale and/or held-to-maturity
securities including
acquisition, receipt of dividends or
interest, and sale of investment ( approximately 20 points)
- Prepare a table to
determine unrealized gains (losses) and
journalize the market adjustment entry (approximately 10
points)
- Journalize various
entries in long-term investments using the
Equity Method (approximately 10
points)
- Prepare the Operating
Activities section of a statement of cash flows
(approximately 20 points)
All working papers are
provided for you.
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Critical
Thinking Assessment |
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- Follow the instructions for
the open-book critical thinking assessment
involving preparation and analysis of a cash
flow statement in Connect (15 points)
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Are You Ready? |
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PTake the
Interactive Quizzes provided by McGraw-Hill on the
Text Website |
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PWork the Chapter 15-16 review
problems in Connect. This review
may be used as a bonus homework grade but is
not required work.
Remember that 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.
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P
Work the attached practice problems by hand.
Recall that exam problems must be completed by hand.
Check your answers against the solutions provided. |
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PWork the
following problems without your text or notes.
Check your answers against the
B Problem Solutions |
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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.
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The following Learning Objectives
will be assessed on this exam: |
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Chapter 15 |
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- Explain the reasons companies make investments
- Distinguish between short-term and long-term
investments
- Identify how various investments are reported on the
financial statements
- Distinguish between debt and equity securities
- Describe the five classes of securities
- Identify the three factors that affect a security’s
class
- Determine the cost of an investment
- Prepare journal entries for the following
- Investment acquisition
- Market Adjustments
- Receipt of interest or dividends
- Disposition of investment
- Calculate and report unrealized gains and losses
- Calculate and report realized gains and losses upon
disposition of securities
- Describe and demonstrate the equity method of
accounting for investments in equity securities
- Define the following terms
- Cash equivalents
- Portfolio
- Parent
- Subsidiary
- Consolidated financial statements
NOTE: The Chapter 15 Appendix
is not covered on this exam. |
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Chapter 16 |
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- Explain the purpose and importance of cash flow
information
- Identify cash flows as
- Operating
- Investing
- Financing
- Describe cash equivalents
- Identify the two methods of preparing a statement of
cash flows
- Prepare a statement of cash flows using the indirect
method
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Reconcile the ending cash balance
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