FINAL EXAM STUDY GUIDE IMPORTANT TOPICS

ACCOUNTING 1 JUNE 2017

Below is a list of topics to study for the final exam. Compile the necessary information in a word document, or simply review and highlight your notes to locate the information:

100 Questions-Multiple Choice, True/False, and Matching

Introduction to Accounting

A.  The Big 4- What is the significance of the companies listed above? What do we call them as a unit?

B.  Who has financial claims to a business? I.E. The Accounting Equation

C.  The 3 Accounting Assumptions- What are they? What do they mean?

D.  Types of Businesses- Merchandising, Service, and Manufacturing. What’s the difference?

The Accounting Cycle

A.  List/understand all of the steps in the cycle

B.  Balancing Transactions- Debits/Credits, types of accounts that increase/decrease.

C.  Account Classification- Assets, Liabilities, Owners Equity, Expenses, etc.

Banking Services

A.  Checks- Outstanding, NSF, Stop Payment, Types of Endorsements, Canceled Checks, Check Stubs

* Be sure to know how to fill out a check and record banking service charges*

B.  Bank Statement- Reading a statement, Reconciling the Bank Statement, Bank Controls, Recording Banking Transactions

Payroll Accounting

A.  Calculating Gross Vs. Net Pay, Accumulated Earnings, Commission, Pay Period,

B.  Salary vs. Hourly Wage, Significance of Payroll Register, W-4 vs. W-2, Calculating Overtime

Payroll (Employee/Employer) Taxes

A.  Employee- (Salaries Expense) Types of taxes paid, calculating tax amounts and deducting them, journalizing the deductions, difference in deductions for employee vs. employer

B.  Employer- (Payroll Tax Expense) Types of taxes paid, calculating tax amounts and deducting them, journalizing the deductions, difference in deductions for employee vs. employer

6 Column Worksheet

A.  Identify the 3 sections of the worksheet

B.  Extending and ruling the balance/financial information. What does this mean?

C.  Calculating a Net Loss Vs. Net Income- How do we know the difference?

Permanent Vs. Temporary Accounts

A.  Which accounts are permanent? Which are temporary?

B.  What is the significance of the temporary accounts? When do they have a zero balance?

C.  What is the purpose of the income summary account. When is it used?

D.  Subtracting Revenue and Expenses gives you what end result? What if the Expenses are higher than revenue totals?

10 Application Problems

Study these specific tasks:

Writing out a Check / Recording a payroll entry
Recording Journal Entries for Bank Fees / Identifying Errors
Calculating Payroll and Overtime / Identifying Normal Balances
Calculating FICA Taxes / Real World Financial Project Facts