Acct review 2300

ACCT 2300 Final Exam Review Sheet
1. Chapter 1
a. Types of businesses
b. Purpose of accounting & Primary users of information
c. Purpose of Financial Statements
d. Conceptual Framework
2. Chapter 2
a. Objectives of Financial Reporting
b. Financial Statements – Know how to calculate each and all the parts in them
b.i. Income Statement – Single and Multi-Step
Net Sales - COGS
Gross Profit
Operating Expenses: - General and Administrative Expenses - Selling Expenses
Income from Operations
Plus other Revenues
Less other Expenses
Income Before Taxes
Less Taxes
Net Income

b.ii. Statement of Retained Earnings
Beginning Retained Earnings
Plus: Net Income
Less: Dividends Paid
Ending Retained Earnings

b.iii. Balance Sheet
Assets:
Liabilities and Equity
Current Assets
Current Liabilities
PP&E
Non-Current Liabilities
Intangibles
Total Liabilities

Common Stock

Additional Paid in Capital

Retained Earnings

Total Equity
Total Assets
Total Liabilities and Equity

b.iv. Statement of Cash Flows

c. Working Capital = Current Assets + Current Liabilities
d. Current Ratio = Current Assets / Current Liabilities
3. Chapter 3
a. Accounting Equation – ASSETS = LIABILITIES + OWNER’S EQUITY
b. JOURNAL ENTRIES and ACCOUNT BALANCES

4. Chapter 4
a. Definition of Recognition and Measurement
b. Cash v. Accrual
b.i. Cash
Revenue is recognized when cash is RECEIVED
Expensed are recognized when PAID
b.ii. Accrual
Revenue is recognized when EARNED
Expenses are recognized when INCURRED
c. Revenue Recognition Principle and Matching Principle
d. Adjusting Entries
d.i. Deferred Expense – Cash paid before expense is incurred
Prepaid expenses (Asset) (Rent, insurance, depreciation)
d.ii. Deferred Revenue – Cash received before revenue is earned
Unearned revenues (Liability) (subscriptions, gift cards)
d.iii. Accrued Liability – Expense is incurred before cash is paid
Payables (Liability) (Wages,