Timed Exam in 2 hours, must be available in 2 hours 1. 15 multiple choice to be finished in 15 minu ...
Timed Exam in 2 hours, must be available in 2 hours 1. 15 multiple choice to be finished in 15 minutes. I wont really need help with this but may send a few questions I dont know. 2. 4 questions/problems, one in the matching format and the other three in the File Response format. To be finished in 1 hour. The quiz is based on 3 chapters that are broken down below. Please accept if you have expertise in these topics. Chapter 8: Know the three MAIN FACTORS that contribute to fraud in the FRAUD TRIANGLE and, if presented with a situation, know how to align these factors to the situation (See Slide 3 and Brief Exercise 8-1) Understand the concept of internal controls, key aspects of the Sarbanes-Oxley Act, who the COSO is, and the KEY COMPONENTS OF THE COSO INTERNAL CONTROL FRAMEWORK (See Slide #’s 4 and 5); recognize the limitations of internal control procedures (See Slide #15) Know the SIX INTERNAL CONTROL PRINCIPLES that comprise the COSO’s Control Activities (Establishment of Responsibility, Segregation of Duties, Documentation Procedures, Physical Controls, Independent Internal Verification, and Human Resource controls) and be able to identify a situation to which those principles might apply (See Slide #’s 6 through 14 and Slide #’s 16 and 17); more specifically HOW THEY RELATE TO CASH RECEIPTS AND CASH DISBURSEMENTS – be able to identify the internal control principle that relates to the relevant cash receipts and/or cash disbursements procedures (Brief Exercises 8.5 and 8.8 are good questions to look at; Slide #’s 18 through 25 also good references) Be able to identify the weakness in a cash receipt or cash disbursement procedure while identifying the internal control principle that is being violated – also be able to make a recommendation for rectifying the situation (See Exercise 8.2 and Exercise 8.3) You NEED TO KNOW HOW TO PREPARE A BANK RECONCILIATION and also be able to prepare journal entries for the book adjustments – THERE WILL BE A PROBLEM ON THIS (Problem 8.4 is a great problem to review plus Slide #’s 31 through 38 are good references) Understand how cash is presented and what qualifies as cash and a cash equivalent (see Slides 39 through 41) – more of a multiple-choice related question, if testedChapter 9: Understand the “allowance” method in accounting for bad debts; be able to recognize and prepared journal entries for each of the 3 stages a bad debt may go through (estimating the bad debt, writing off an account receivable, and recovery of an account receivable previously written off) (this whole process is exhibited through Slide #’s 5 through 11) Be able to determine a bad debt estimate based on the “percentage-of-receivables” method through a percentage of total receivables, and also using an aging of receivables; understand how the bad debt estimate is then recorded when the existing balance in allowance for doubtful accounts is a credit or a debit (See Brief Exercise 9.6, Exercise 9.6, Exercise 9.4 (although this question goes a little deeper than I will get with a problem on the quiz), and further illustrated through Slide #’s 12 through 19) Understand the significance of the “allowance for doubtful accounts” account, how receivables are presented, specifically the concept of “net or cash realizable value” (See Brief Exercise 9.4, as well as Slide #’s 7 and 8) THERE WILL BE A PROBLEM ON THE QUIZ INTEGRATING ALL OF THE ABOVE THREE BULLET POINT CONCEPTS Understand the process for factoring receivables in order to expedite payment as well as the manner that credit card sales are processed – important to understand how the journal entries work in recording these types of transactions (See Slide #’s 20 through 27 as well as Exercise 9.9) As it relates to receivables analysis, I will not ask you to memorize computations or even make the computation; however, you will be responsible for having a basic understanding of the interpretation of these analyses if they are presented to you – in other words, you will need to be able to make sense of what the reported analyses mean and/or elude to via a company’s performance (see Slide #’s 31 through 34) Know the components of a note, how to compute interest on a note, and how to determine the maturity date of a note especially when the note is expressed in terms of days (Slide #’s 35 through 38 and Slide #’s 42 and 43, as well as Brief Exercise 9.8 and parts of Exercise 9.12); you should also understand the journal entries that need to be recorded when a note receivable is honored and paid and/or dishonored (See Slide #’s 40 and 41, as well as Exercise 9.12) – THERE COULD BE A SHORT PROBLEM ON THESE VARIOUS NOTE RECEIVABLE CONCEPTS Chapter 10: You need to know the various classes of plant assets and the costs that get capitalized to those assets - versus costs that do not go into the plant asset account (fully covered in Slide #’s 3 through 12 and further reviewed in Exercise 10.2 and Exercise 10.3 – land big focus) Need to understand the depreciation process in its entirety – the concept of cost, useful life, salvage value, and net book value (Slide #’s 13 through 17) Know how to compute, report, and record journal entries for depreciation using the straight-line, units-of-activity, and declining-balance methods, and how to derive end of period accumulated depreciation and book value – THERE WILL BE A PROBLEM ON THE QUIZ THAT REQUIRES YOU TO COMPUTE DEPRECIATION UNDER ALL THREE METHODS, DERIVE ACCUMULATED DEPRECIATION BALANCE AND NET BOOK VALUE AS WELL (thoroughly reviewed in Slide #’s 18 through 36, Exercise 10.6, Problem 10.2) Understand the process for disposing of plant assets (selling, retiring plant assets) as well as how to compute a gain or loss on the disposal including the preparation of the journal entries to reflect the disposal on the books (Slide #’s 48 through 50 and Exercise 10.9) Understand what natural resources are, the concept of depletion associated with natural resources, and how to calculate depletion on natural resources (See Slide #’s 48 through 50) Understand the types of intangible assets, what goes into the cost of intangible assets, the amortization process and determining and recording amortization on intangible assets) (See Slide #’s 51 through 59, as well as Exercise 10.13); know what comprises research and development costs (what they are and how they are accounted for) (See Slide #’s 57 through 59) Understand the statement presentation and analysis of assets – again, I am not looking for you to memorize computations or even make the computation; what I am looking for is your basic understanding of the interpretation of such analyses if they are presented to you – in other words, you will need to be able to make sense of what the reported analyses mean and/or elude to via a company’s performance (See Slide #’s 60 through 66, as well as CT10.2 (comparative analysis problem))
