Lecture 9 Midterm 1 Review

Lecture 9 Midterm 1 Review - Midterm review Exam format...

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Midterm review Exam format Multiple choices Record transactions in a spreadsheet Financial statement impact Prepare a statement of cash flows
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Midterm review Record transactions 1. Analyze the transaction, identify which two or more accounts are affected, find the right column to post, make sure that the signs are correct and the accounting equation holds all the time. 2. You should know important transactions such as sales, depreciation, even though they are less intuitive than cash purchase type of transaction. 3. Be clear as to when to record revenues, cost of goods sold, and various expenses.
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Midterm review Financial statement impact 1. B/S is usually affected. You can tell the effect right from the entry. 2. Income statement is affected only if revenues or expenses are affected. 3. Cash flow statement impact: first, decide which cash flow is affected (CFO, CFF, or CFI). If it is CFO, then start from the net income number you derived and make necessary adjustments.
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Midterm review Prepare a statement of cash flows 1.Calculate the change in cash balance. 2. CFO = net income + depreciation expense –gains + losses – change in other current assets + change in current liabilities. 3. CFI=change in long-term assets (positive change means cash
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This note was uploaded on 04/11/2009 for the course ACCT 410x taught by Professor Bonner during the Fall '06 term at USC.

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Lecture 9 Midterm 1 Review - Midterm review Exam format...

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