Financial Accounting Exam Info

• Generally accepted accounting principles
• Rules of double-entry accounting/transaction analysis/accounting equation
• The accounting cycle
• Business ethics
• Purpose of, presentation of, and relationships between financial statements
• Forms of business

• Presentation format issues (e.g., single-step vs multi-step)
• Recognition of revenue and expenses
• Cost of goods sold
• Nonoperational items (e.g., gains and losses, etc.)
• Profitability analysis

• Cash and internal controls
• Valuation of accounts and notes receivable (including bad debts)
• Valuation of inventories
• Acquisition and disposal of long-term assets
• Depreciation/amortization/depletion
• Intangible assets (e.g., patents, goodwill, etc.)
• Accounts and notes payable
• Long-term liabilities (e.g., bonds payable)
• Owner's equity
• Preferred and common stock
• Retained earnings
• Liquidity, solvency, and activity analysis

• Indirect method
• Cash flow analysis
• Operating, financing, and investing activities
• Noncash financing and investing activities

Miscellaneous (Less than 5%)

• Investments
• Contingent liabilities