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 ccservice business Units 1-13)
a) assets
w)
contra account
b) liabilities
x)
net book value
c) owner’s equity
y)
current assets
d) capital
z)
fixed assets
e) drawings
aa)
current liabilities
f)
revenues
bb)
long term liabilities
g) expenses
cc)
service business
h) transaction
dd)
merchandise business
i)
source documents
ee)
manufacturing business
j)
chart of accounts
ff)
sales discounts
k) journal
gg)
sales returns
l)
ledger
hh)
transportation in
m) trial balance
ii)
delivery expense
n) balance sheet
jj)
purchases
o) income statement
kk)
gross profit
p) accounting cycle
ll)
cost of goods sold
q) adjusting entries
mm) special journals
r)
closing entries
nn)
columnar journals
s) post closing trial balance
oo)
subsidiary ledger
t)
worksheet
pp)
control account
u) depreciation
qq)
bank reconciliation
v)
accumulated depreciation
rr)
petty cash
2. GAAP and GAAP related terms: definitions and ability to use in cases
a) GAAP
g) Revenue Recognition Principle
b) Business Entity Concept
[Realization}
c) Cost Principle
h) Materiality Principle
d) Objectivity Principle
i) Consistency Principle
e) Matching Principle
j) Disclosure Principle
f)
Time Period Principle
k) Principle of Conservatism
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3. Accounting formulas: know the formula and what each value means
a) Owner’s Equity
h) Gross Profit
b) Net Income
i) Current Ratio
c) Net Book Value
j) Working Capital
d) Straight Line Depreciation
k) Debt Ratio
e) Declining Balance Depreciation
l) Equity Ratio
f) Supplies Used/Expense
m) Net Income as % of Sales
g) Insurance Expired/Expense
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
g) Bank debit memo
b) Cash sales slip
h) Bank credit memo
c) Purchase invoice
i) Credit invoice issued
d) Cheques issued
j) Credit invoice received
e) Cheques received
k) Cash Refund Slip issued
f) Cash receipt list
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?

Where is it done?
 When is it done?

How is it done?
 Why 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).
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