St. Thomas Aquinas CSS

St. Thomas Aquinas CSS

BAF3M Exam Preparation List December 4, 2015

Students should possess a strong knowledge of the common accounting terminology, formulas and procedures (including formatting rules) as they complete this course and write the final exam & complete the culminating activities. It is strongly recommended that students prepare their terminology/formula list early and review it often. Be sure that your definitions are complete and that you can use your knowledge effectively and appropriately when answering exercises and case style questions.

1.  Accounting terms: definitions for the following terms (a to ccèservice business Units 1-13)

a)  assets

b)  liabilities

c)  owner’s equity

d)  capital

e)  drawings

f)  revenues

g)  expenses

h)  transaction

i)  source documents

j)  chart of accounts

k)  journal

l)  ledger

m)  trial balance

n)  balance sheet

o)  income statement

p)  accounting cycle

q)  adjusting entries

r)  closing entries

s)  post closing trial balance

t)  worksheet

u)  depreciation

v)  accumulated depreciation

w)  contra account

x)  net book value

y)  current assets

z)  fixed assets

aa)  current liabilities

bb)  long term liabilities

cc)  service business

dd)  merchandise business

ee)  manufacturing business

ff)  sales discounts

gg)  sales returns

hh)  transportation in

ii)  delivery expense

jj)  purchases

kk)  gross profit

ll)  cost of goods sold

mm)  special journals

nn)  columnar journals

oo)  subsidiary ledger

pp)  control account

qq)  bank reconciliation

rr)  petty cash

2.  GAAP and GAAP related terms: definitions and ability to use in cases

a)  GAAP

b)  Business Entity Concept

c)  Cost Principle

d)  Objectivity Principle

e)  Matching Principle

f)  Time Period Principle

g)  Revenue Recognition Principle [Realization}

h)  Materiality Principle

i)  Consistency Principle

j)  Disclosure Principle

k)  Principle of Conservatism

3.  Accounting formulas: know the formula and what each value means

a)  Owner’s Equity

b)  Net Income

c)  Net Book Value

d)  Straight Line Depreciation

e)  Declining Balance Depreciation

f)  Supplies Used/Expense

g)  Insurance Expired/Expense

h)  Gross Profit

i)  Current Ratio

j)  Working Capital

k)  Debt Ratio

l)  Equity Ratio

m)  Net Income as % of Sales

n)  Gross Profit Margin

4.  Apply appropriately the rules for debit and credit when recording transactions for a service and merchandise business.

5.  Interpret and record transactions for common source documents for a service (a to h) and merchandise business (i to l) including:

a)  Sales invoice

b)  Cash sales slip

c)  Purchase invoice

d)  Cheques issued

e)  Cheques received

f)  Cash receipt list

g)  Bank debit memo

h)  Bank credit memo

i)  Credit invoice issued

j)  Credit invoice received

k)  Cash Refund Slip issued

l)  Cash Refund Slip received

6.  Prepare and interpret properly formatted financial statements as learned in the course in a timely manner (d to f are for merchandise business):

a)  Income Statement: service business

b)  Classified Balance Sheet (report form)

c)  Statement of Owner’s Equity

d)  Schedule of Cost of Goods Sold (simple)

e)  Schedule of Cost of Goods Sold (detailed)

f)  Income Statement for a Merchandise Business

7.  Accounting Cycle: Be able to identify each of the steps of the accounting cycle (in proper order) and be able to complete each step using appropriate formatting for a service and merchandise business.

For each step in the accounting cycle, be able to answer the following questions:

·  What is it?

·  When is it done?

·  Why is it done?

·  Where is it done?

·  How is it done?

The written exam is 2 hours and will likely be written on Day 4 (Tuesday, February 2, 2016) and will have a variety of question styles (including multiple choice, practical exercises, short written answer and case studies).