ACCT504 Midterm Guide
The ACCT504 Midterm Exam will be an online open-book, open-notes, open-computer exam with a time limit of 2 hours and 30 minutes. It will be worth 150 points or 15% of the course grade.
The Midterm Exam is multiple pages and consists of 30 multiple-choice questions, one essay question, and one problem. The multiple-choice questions are worth 3 points each. Some of the multiple choice questions are problem-based. There is also one essay question worth 25 points and one problem worth 35 points. Terminal Course Objectives A, B, C, D, and E are all addressed on this exam.
For the multiple choice questions worth 90 points, you should know:
1. Know what information is desired by external users of financial statements
There are several types of external users of accounting information. Investors (owners) use accounting information to make decisions to buy, hold, or sell stock. Creditors such as suppliers and bankers use accounting information to evaluate the risks of selling on credit or lending money.
External Users
The external users comprise of:
Institutional Investors: The external users of financial statements are basically the investors who use the financial statements to assess the financial strength of a company. This would help them to make logical investment decisions.
Financial Institutions: The users of financial statements are also the different financial institutions like banks and other lending institutions who decide whether to help the company with working capital or to issue debt security to it.
Government: The financial statements of different companies are also used by the government to analyze whether the tax paid by them is accurate and is in line with their financial strength.
Vendors: The vendors who extend credit to a business require financial statements to assess the creditworthiness of the business.
General Mass and Media: The common people as well as media also make part of the users of financial statements.
2. Know about
The Midterm Exam is multiple pages and consists of 30 multiple-choice questions, one essay question, and one problem. The multiple-choice questions are worth 3 points each. Some of the multiple choice questions are problem-based. There is also one essay question worth 25 points and one problem worth 35 points. Terminal Course Objectives A, B, C, D, and E are all addressed on this exam.
For the multiple choice questions worth 90 points, you should know:
1. Know what information is desired by external users of financial statements
There are several types of external users of accounting information. Investors (owners) use accounting information to make decisions to buy, hold, or sell stock. Creditors such as suppliers and bankers use accounting information to evaluate the risks of selling on credit or lending money.
External Users
The external users comprise of:
Institutional Investors: The external users of financial statements are basically the investors who use the financial statements to assess the financial strength of a company. This would help them to make logical investment decisions.
Financial Institutions: The users of financial statements are also the different financial institutions like banks and other lending institutions who decide whether to help the company with working capital or to issue debt security to it.
Government: The financial statements of different companies are also used by the government to analyze whether the tax paid by them is accurate and is in line with their financial strength.
Vendors: The vendors who extend credit to a business require financial statements to assess the creditworthiness of the business.
General Mass and Media: The common people as well as media also make part of the users of financial statements.
2. Know about