ACCT 2302

 

Specific topics to review for Exam I

 

 

NOTE: This should be pretty close to the content of the exam. If there are any changes I'll notify you that the review has been updated after I get the exam written.

 

There will be both M/C questions and problems to be worked on this exam. You WILL need one 882E scantron. Paper will be provided for any problems to be worked out. You will also need a calculator.

 

You will need to read and understand all covered chapters. Also review PowerPoint slides, class notes, and homework assignments. Exam problems will be similar to assigned "exercises" (not the longer problems).

 

Please note that the exam comprises at least 60% theory (straight from text) and up to 40% problems in M/C format. There will be approximately 35 questions worth 3 points each, which builds 5 points extra credit into the exam.

 

Please study hard, as the exam will NOT be curved. Good luck!

 

M/C question formats will include, but are not limited to, the following:

 

“All are true except” statements (3 True/1False)

Select incorrect statement regarding . . .

Which statement is true with regard to . . .
Problems similar to assigned exercises

 

Topics covered may include, but are not limited to, the following:

 

·        Effects of transactions on financial statement model

 

Example:  Effect of the purchase on account of factory equipment

 

Assets = Liabilities + Equity  |  Revenues – Expenses = Net Income   |  Cash Flows

    +               +               n/a            n/a               n/a                n/a                    n/a

 

·        Product costs vs. period costs - know examples & be able to classify

 

·        Upstream vs. downstream costs - know examples

 

·        Code of ethics - know major topics & be able to identify which relates to simple scenario

 

·        Fixed vs. variable costs - know examples & be able to classify

 

·        Contribution Margin Income Statement – know format & calculate components

 

·        Operating Leverage – calculate and apply (know formula)

 

 

·        Relevant range - what does it mean, & be able to identify from simple scenario

 

·       

• Cost-Volume-Profit analysis (CVP) (formulas will be provided for chapter 3 only)
  • Know basic concepts
  • Be able to calculate using all three models
    • Contribution Margin per Unit
    • Contribution Margin Ratio
    • Equation Method
  • CVP Graph - be able to identify various components

• Breakeven analysis
  • Be able to calculate both in units and in dollars (watch what I'm asking for!)
  • Know basic concepts
  • Be able to calculate required sales for desired profit (both in units and dollars)

• Fixed Costs vs Variable Costs
  • Be able to differentiate between the two (identify specific costs as fixed or variable)
  • Be able to calculate Contribution Margin
  • Be able to calculate & apply Operating Leverage

• What are C-V-P limitations?

• Margin of Safety
  • Know basic concepts
  • Be able to calculate MoS as % Sales, Sales dollars, or number of units