Study Guide Ac305 Final Exam

STUDY GUIDE – FINAL EXAM The course exam consists of 25 multiple choice questions valued at 3 points each, and 5 Short Answer computational questions valued at 25 points each. The questions found on your exam are selected randomly from a pool of questions but will represent topics studied that satisfied all Terminal Course Objects (TCO) as found in the course syllabus. Multiple choice questions are in a pool of 75 questions that represent each of the TCOs and come from all of the chapters of the textbook covered during the course. Some of these questions may be found in the weekly quiz, but not necessarily. The short answer computational questions are pooled as well, from a pool of 15. TCO 3, 4, 5, 6 & 7 are represented (intangibles and leases are well covered in the multiple choice questions). The short answer responses will cover questions pertaining to the basic calculations and journal entries for depreciation, removal of assets, investments in securities (trading securities, available for sale, and equity method), current liabilities, contingent liabilities, Bonds using effective interest method (discount and premium), as well as straight line amortization of bond discount. Pay special attention from whose perspective you will be doing the computations and journal entries. For example, in the bond discount situation, read the question carefully as to whether you will be making entries for the issuer of the bond or the investor. With respect to the bond short answer questions, you will need to have a copy of Table 2 the present value of an annuity table; and table 4 the present value of an ordinary annuity table present before you start the exam. I suggest you print out a copy of each and have it in front of you before you start the exam. Remember when using these tables, if interest is semi-annual, then you cut the interest in half, and double the time period to find the factor at the intersection of row and column that you need. For example, if the effective interest rate is 10%, and the bond is 10 years, then the factor at the intersection of Column of 5% and Row of 20 periods would be used, so in Table 2 (present value of an annity) the factor would be .37689, for example. Likewise, if present value of an ordinary annuity (Table 4) were used, so the factor would be 12.46221 (at the intersection of 5% and 20 periods). Examples of all of the computations and journal entries are easily found the textbook (many times in illustrations or graphics); thus, only math errors would render the answer incorrect. It is suggested that all computations are completed twice with a calculator. Time management is critical to completing this exam. It is suggested that the student complete the multiple choice questions from knowledge saving time to spend researching and computing the answers to essays and computational problems respectively. Once complete the student could recheck the answers to the multiple choice questions. Keep an eye on the remaining time and save your work often, because when the time limit is reached you will automatically be exited from the exam. Please also note that during the exam time, copy/paste and printing are disabled.