Exam #1 Outline PDF

Preview

Summary

Exam 1 Outline ...

Description

AC331 Exam #1 Outline (Chapters 1, 2 & 3) - Know all components of the conceptual framework. (Including the elements of the financial statements….ignore comprehensive income for this exam) . - Know when to perform an adjusting entry and how one is performed…. Remember, adjusting entries never involve cash - Understand the definitions and the different types of adjusting entries…Converting assets into expenses, converting liabilities into revenues, accrued expenses, and accrued revenues. - Who governs the financial accounting standard setting process in the U.S.? - What’s the purpose of the IASB/ Convergence Project - Know the general background on FASB and its predecessors. What organizations existed before FASB? What did those organizations issue? Why did they fail? - Know the steps of the accounting cycle

Structure of Exam: 25-30 multiple choice questions 3 problems: 1) Matching qualitative characteristics, assumptions, principles, and constraints to the appropriate definition. 2) Preparing adjusting entries from an adjusted trial balance and supplemental information 3) Identifying which qualitative characteristic, assumption, principle, or constraint applies to a particular statement...