Prin1mem[1] - if we did that any error you made in the...

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ACC203 EXAM #1 MEMO GENERAL: The exam will be about 75% technical problems. The other 25% of the exam will be conceptual questions. TECHNICAL PROBLEMS: The accounting cycle. Technically speaking, this first exam is primarily about the accounting cycle. You will be expected to. .. 1.Understand the impact of business events on accounts (“What accounts are affected” and “ How is each account affected? Increased or decreased?” 2. Make journal entries to record business events. 3. I won’t ask you to post journal entries to T-accounts. Although this is a useful thing to do, the fact that you can make entries is all we need. 4.I won't ask you to make a trial balance; it's too trivial. But do understand what the trial balance is for. 5.Make end-of-period adjusting entries. 6.Prepare financial statements: income statement, statement of retained earnings, and balance sheet. We could test your abilities in the accounting cycle by giving you one gigantic problem that takes you from business events, right through to the preparation of financial statements. But
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Unformatted text preview: if we did that, any error you made in the beginning would carry through to the end. Instead, the accounting cycle will be broken up into independent parts. For example, you might be asked to make financial statements from an adjusted trial balance I'll provide (though note that if I ask you to do this, the accounts will be in no particular order!). CONCEPTUAL QUESTIONS: These questions will concern such topics as 1) the purpose, context, and regulatory environment of financial accounting, 2) the core of GAAP, such as accrual accounting vs. cash accounting, 3) the function and meaning of adjusting entries, and other qualitative topics. These conceptual questions will require a brief answer from you, often just a sentence or two or a short list. Note that it’s impossible to be exhaustive here, but you will only be responsible for material actually raised in class....
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Prin1mem[1] - if we did that any error you made in the...

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