2361 Accounting – Comprehensive Review Sheet
This review sheet is meant to be
helpful not 100% all-inclusive.
The topics covered
on the exam will be topics covered on your homework.
75 multiple choice questions/approximately 4-6 questions per chapter
Covers chapters 1-12, 14, 15
See last page of review
If you look at the end of your textbook there is a “rapid review on financial statements.”
You should add four items to the statements:
(1) in the current asset section of the balance sheet
remember to deduct the Allowance for Doubtful Accounts, (2) in the liability section you would add a
Premium on Bonds Payable and deduct a Discount on Bonds Payable, (3) in the Stockholders’ Equity
Section remember Treasury Stock is a deduction, and Additional Paid In Capital goes in the SHE
section, (4) in the Statement of Cash Flows you will only have questions on the indirect method.
What accounts appear on this statement, what is the heading, what is the purpose,
calculate net sales, calculate cost of goods sold (beginning inventory + net purchases + transportation –
ending inventory), calculate gross profit, and calculate net income after taxes.
Statement of Retained Earnings:
What is the heading? What is the purpose? Calculate ending retained
earnings (Beginning Retained Earnings + net income or – a net loss, minus both cash & stock dividends =
ending retained earnings.)
What is the heading, what accounts appear on this statement? What is the purpose?
Calculate current assets, calculate total property, plant and equipment, calculate total assets, calculate total
liabilities, and calculate total stockholders’ equity.
Statement of cash flows:
What is the heading?
What is the purpose?
What are the sections?
transactions go in each section? Calculate Net Cash Provided from Operations using the indirect method.
Calculate net cash provided/used from investing activities.
Calculate net cash provided/used from
Definitions: pages 9-10 (GAAP, SEC, FASB, cost principle, monetary unit, economic entity assumption)
Assets, Liabilities, Stockholders Equity, Revenues, Expenses
Relationship of four financial statements (sequence of preparation)