ACC 255 EXAM 3 REVIEW SHEET
EXAM DATE:
Thursday November 17, 7-9 pm
EXAM ROOM:
Section
1
2
3
4
5
6
7
8
9
10
11
EXAM FORMAT:
Class Time
MWF 8:00-8:50
MWF 9:10-10:00
MWF 9:10-10:00
MWF 10:20-11:10
MWF 10:20-11:10
MWF 11:30-12:20
MWF 11:30-12:20
TTH 4:00-5:15
TTH 11:10-12:25
TTH 12:45-2:00
TTH 4:00-5:15
Instructor
Staskey
Staskey
Wilburn
Staskey
Watkins
Watkins
Staskey
Swartz
Irving
Irving
Downen
Multiple choice questions (20 @ 3 points each)
Various problems: may include matching, short answer,
calculations, analysis, journal entries, financial statements
Total
Exam Room
111
202
437
232
445
446
226
436
345
346
334
=
60
=
=
140
200
EXAM RULES:
1.
2.
3.
4.
Be on time to the exam. We will start at 7:00 pm and end at 9:00 pm.
What to bring: picture ID, No. 2 pencils with erasers (you will be using a computer answer sheet), your
own calculator, & watch.
 You may NOT share calculators, use cell phones or iPods as a calculator, or use programmable
calculators with an alphabet (remove calculator from cover and put cover in your bag or backpack)
 You may NOT use dictionaries/translators or any other electronic devices
 Turn off cell phones and remove hats/hoods/iPods & put them away (in your bag or backpack)
 You do NOT need to bring extra paper – it is all supplied
 ALL books, backpacks, purses, etc. are to be placed at the front of the room next to the wall
You may not leave the room once the exam starts—so visit the bathroom before the exam and do not bring
in coffee, sodas, etc. that may create a problem for you.
CHEATING IN ANY FORM ON THE EXAM WILL NOT BE TOLERATED. AT A MINIMUM, CHEATERS WILL
RECEIVE AN "F" IN THIS COURSE.
PRACTICE RESOURCES (note that some MC questions on your exam will come from the
review packet or self-study questions referenced below!):

Work the sample exam in the ACC 255 course packet

Work the exam 3 review packet (available on your instructor’s faculty webpage at
http://www.franke.nau.edu/faculty/ and then click on instructor’s name)

Work the following self-test multiple choice questions at the end of each chapter or on the textbook website (CH
9: pp. 481-482 [#1-5,9-16]; CH 10: pp. 540-541 [#1-4,7-12,14,15]; CH 11: pp. 600-601 [#1-16] and additional selftest multiple choice questions on the textbook website (CH 9 [#1,3-13,17,19-26,28-31]; Appendix D [#1-15]; CH
10 [#1-6,9,12,14-22,24,25,27]; CH 11 [#1-15,17-21,23-30])
WHAT TO REVIEW AT A MINIMUM! (you are responsible for all study objectives listed in
your syllabus/course packet for each chapter!)
Important notes: you will be provided with time value of money tables; you will also be
provided with formulas for the computation & notation of ratios
FOR ALL CHAPTERS: know all the concepts & terminology pertaining to all learning objectives covered in
each chapter (at the end of each chapter, there is a list with all important terms defined) AND be able to THINK!
(that is, you must be able to apply your knowledge to situations you have not encountered before -- if you
simply "memorize" the material, you will be in trouble!)
CHAPTER 9
(1)
Identify items included in acquisition cost of long-lived assets & prepare JE to record; distinguish between
capital and revenue expenditures
(2)
Explain the concept of depreciation; calculate annual depreciation, accumulated depreciation, and book value
using different methods: (a) straight-line, (b) units-of-activity, and (c) double-declining balance; prepare AJE to
record annual depreciation; prepare balance sheet presentation of PP&E
(3)
Account for disposal of long-lived assets, including calculation of gain or loss and preparation of disposal JE
(4)
Account for intangible assets: prepare JE to record acquisition; distinguish which intangibles are amortized
versus not; prepare JE to record amortization if appropriate (and compute amount); compute book value and
prepare balance sheet presentation for intangibles
(5)
Compute and interpret ratios to analyze a company’s profitability (return on assets, asset turnover, and profit
margin); describe the relationship of profit margin and asset turnover to determine ROA.
APPENDIX D
(1)
Compute future value of single sum or annuity.
(2)
Compute present value of single sum or annuity.
(3)
Apply concepts to solve various time value of money problems, including calculation of an annuity amount,
interest rate, number of periods (must understand use of FV & PV tables & formulas).
(4)
Compute present value (i.e., selling price) of bonds.
CHAPTER 10
(1)
Define current liability and identify major types of current liabilities.
(2)
Prepare JEs for notes payable to record (a) issuance of note, (b) accrual of interest (be able to calculate
interest), and (c) payment of note.
(1)
For bonds payable, (a) identify types of bonds, (b) know how selling prices of bonds are quoted and whether
results in a premium or discount based on the relationship between the contractual interest rate and market
interest rate; (c) prepare JEs to record issuance of bond at face, premium, or discount; periodic interest
payments for bond issued at face; and redemption of bond at maturity date; (d) prepare balance sheet
presentation of bonds.
(4)
Compute and interpret ratios to analyze a company’s liquidity and solvency (current ratio, debt to total assets
ratio, and times interest earned ratio).
(5)
Define contingent liability and identify when it should be recorded.
CHAPTER 11
(1)
Identify (a) major characteristics of a corporation and its advantages & disadvantages, (b) rights and
characteristics of preferred & common stock, and (c) authorized, issued, and outstanding shares of stock-be able to calculate the number of shares issued and outstanding.
(2)
Prepare JEs to record stock issuance for cash when stock is a par value, stated value, or no-par stock.
(3)
Prepare JEs for the repurchase of stock (i.e., treasury stock).
(4)
Prepare stockholders' equity section of balance sheet, including disclosure of retained earnings restrictions;
(identify which accounts represent paid-in capital).
(5)
Account for cash dividends, including calculation of dividend amount for preferred stock and for common
stock, and preparation of JEs at (a) declaration date, (b) record date, and (c) payment date.
(6)
Compute the effect of stock dividends on stockholders’ equity accounts.
(7)
Account for stock splits: calculate new number of shares & new par value per share; know effect on
stockholders' equity and balance sheet.
(8)
Compute and interpret ratios to analyze a company’s dividends and earnings performance (payout ratio, return
on common stockholders’ equity); describe factors in a company’s debt versus equity decision.