Transcript FMGT 1100 Accounting Level 1

Exam Prep
FMGT 1100 ACCOUNTING LEVEL 1
Format
 Multiple Choice (~50% of exam)
 Short answers (~50% of exam)
How to practice multiple
choice questions:
 Tracy Oh (The most awesome accounting
instructor) has provided us with 10 practice
multiple choice questions from each chapter.
Here is how to access it:
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Go to shareout
Click on FMGT1100
Click on Traceyoh
Download Finalpractice folder to your computer.
 I would highly suggest doing these questions,
because some of them may be on the final. This
is the best way to get an idea of how they are
going to ask you m/c questions on the final.
Sample Chapter 3 M/C
 On September 1, 2010, Two Sisters Company
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pays $36,000 cash for six months' rent. The
balance in prepaid rent on December 31,
2010, after adjustment, would be:
A) $6,000
B) $24,000
C) $12,000
D) $0
Sample Chapter 4
 The owner's capital account has a January 1,
2010, balance of $59,000. The owner's
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withdrawals account has a balance of $25,600 for
the year ending December 31, 2010. The income
summary account contains a debit for $20,500
and a credit for $56,900. The balance in the
owner's capital account on December 31, 2010,
is:
A) $69,800
B) $10,800
C) $95,400
D) $90,300
Sample Chapter 5
 A company makes a purchase of $2,000 of
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inventory, subject to credit terms of 3/10 n/45
and returns $500 of inventory prior to
payment. What is the amount of the payment
assuming payment is made within the
discount period?
A) $1,500
B) $1,455
C) $1,440
D) $1,560
Sample Chapter 6
 Refer to Table 6-1. Assume a periodic
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inventory system. Under the weightedaverage method, cost of goods sold on the
income statement would be:
A) $396
B) $294
C) $389
D) $420
Sample Chapter 7
 The three stages of data processing are:
 A) inputs, outputs, and processing
 B) source documents, processing, and
decision making
 C) processing, reports, and decision making
 D) inputs, decision making, and outputs
What I think will be on
short answer portion
 Statement of Owner’s Equity
 Classified Balance Sheet
 Journalizing PERIODIC transactions
 FIFO, Moving Weighted Average
(myaccountinglab #6, E 6.9 )
 Sales and Purchasing Journal Entries
(myaccountinglab #7, P7-1A)
Concepts you should know
 P 5-14A Adjusting and closing – periodic
 P5-15A Classified Balance Sheet – report
 E6-9 Computing ending inventory – periodic
 E6-11 Effects of income
 E6-14 Inventory errors
 E6-18 Gross margin method
 E6-19 Retail Method
 P7-1A Using journals and subsidiary ledgers
Statement of Owner’s Equity
Classified Balance Sheet
Journalizing Periodic Entries
Specific Unit | FIFO |
Weighted Average
Effects of Inventory Errors (P.314)
COGAS (Cost of Goods Available for Sale)
-Ending Inventory
= COGS (Cost of Goods Sold)
Sales Revenue
-COGS
= Gross Margin
-Operating Expense
= Net Income
Period 1
Period 2
Inventory
Error
Cost of Goods Gross Margin
Sold
and Net
Income
Cost of Goods Gross Margin
Sold
And Net
Income
Period 1
ending
inventory is
overstated
Understated
Overstated
Overstated
Understated
Period 1
ending
inventory is
understated
Overstated
Understated
Understated
Overstated
What more can you do?
 Do the practice final (solutions are in
shareout)
 Review all questions assigned for homework
 Also in TraceyOh’s folder are study guides for
each chapter