BUS 170 (Accounting) Exam Topics PDF

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BUS 170 (Accounting) Exam Topics...

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BUS 171 Exam Topics Topic 4 The Accounting System: Concepts and Application Key questions      

What are the basic concepts and terms that help identify the activities a business’ accounting system records? What do users need to know about the accounting equation for a business? Why are at least two effects of each transaction recorded in a business’ accounting system? What are revenues and expenses, and how is the accounting equation expanded to record these items? What are the accounting principles and concepts related to net income? Why are adjustment entries necessary at the end of a financial period?

Topic 5 Managing and Reporting Working Capital Key questions      

What is working capital, and why is its management important? How can managers control cash receipts in a business? How can managers control cash payments in a business? How can managers control accounts receivable in a business? How do we measure and report accounts receivable in Balance Sheet How can managers control inventory in a business? How do we determine the cost of ending inventory? How can managers control accounts payable in a business?

Topic 6 The Income Statement : Content, Use and Analysis Key questions       

Why is a business’ income statement important? How are changes in a business’ income statement accounts recorded in its accounting system? What are the parts of a retail business’ classified income statement, and what do they contain? What are inventory and cost of goods sold, and what inventory systems may be used by a business? What are the main concerns of external decision makers when they use a business’ income statement to evaluate its performance? What type of analysis is used by external decision makers to evaluate a business’ profitability? What is a statement of comprehensive income?

Topic 7 The Balance Sheet: Content and Use and Analysis Key questions     

Why is a business’ balance sheet important? What do users need to know about a business’ classified balance sheet? What is a business’ liquidity, and how do users evaluate it? What is a business’ financial flexibility, and how do users evaluate it?

Topic 8 – Introduction to the Cash Flow Statement: Content, Use and Analysis Key questions     

Why is a business’ cash flow statement important? What types of transactions may cause cash inflows and cash outflows for a business? How does a business report the cash flows from its operating activities on its cash flow statement under the direct method? How do users combine the changes in a business’ current assets and current liabilities with its revenues and expenses for the accounting period to determine the business’ operating cash flows? What cash flow ratios are used to evaluate a business’ performance?

Topic 9 Sustainable Business Key questions      

What are the Triple Bottom Line What is corporate social responsibility? What is sustainability reporting and why is it important? What is the Global Reporting Initiative (GRI)? What is the role of accountant in sustainable business? What is intergenerational equity?

Topic 10 Short-Term Planning Decisions: Type of Costs and Revenues Relevant to Decision Making Key Questions       

What types of costs and revenues are relevant to decision making? How do costs and revenues be considered in deciding whether to: Accept or reject a special order Make –or –buy decision Drop a product Sell a product or process it further...