STUDY GUIDE AND OTHER NOTES FOR FINAL EXAM ACCOUNTING 2600 – Summer 2016 Steve Lake The final exam will be held on August 4 from 6:00 – 8:00 pm in our same room Additional information about the final exam: The final exam covers the 2 nd half of the course only (financial accounting – Chapters 1-5 and 7). There are 50 multiple choice questions on the exam (some conceptual and some calculations). You will have 2 hours to complete the exam. We will start right at 6:00 pm so please be there before 6:00pm. Bring a pencil (or multiple pencils to be safe). Calculator will be provided. You cannot leave the room during the exam (so please use the bathroom before the test starts). No questions will be answered during the exam. No hats. If you bring a bag you must leave it at the front of the room during the exam. You can bring a drink and/or a small snack – nothing distractive Seating may be assigned. ID’s may be required (please bring your ID in case). Study guide: Chapter 1 1.What is financial accounting? 2.How do external users use financial statements? 3. Accounting equation: Assets = Liabilities + Shareholders Equity 4.What are common accounts within each component of the accounting equation?
5. Know how to solve for missing elements of the accounting equation when the rest are given. 6. Know how to calculate missing components of a balance sheet when others are given (for example, know how to calculate liabilities if you are given assets and equity). 7. What is a balance sheet and income statement? -Balance sheet: assets= equity + liabilities…. Everything is equal and balances out. -Income statement-reports the results of company’s operations the sale of goods and services and the associated coast of operating the company for a given period. The main goal is to have NET INCOME of more revenues than expenses.