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ACC-101-TE
This TECEP is an introduction to the field of financial accounting. It covers the accounting cycle, merchandising concerns,
and financial assets as well plant assets, liabilities and stockholders equity. Topics include: recording business transactions,
summarizing these transactions, and preparing, interpreting and using financial statements. (3 s.h.)
2.
3.
Accounting for merchandising activities, financial assets, inventories cost of goods sold (15%)
A. Accounting for purchases/sales/end-of-year adjustments using perpetual inventory system and
periodic inventory system
B. Using perpetual inventory system, determining cost of goods sold using average cost, fifo, lifo
C. Physical inventory; effects of inventory valuations on financial statements; evaluating (rate of
inventory turnover) effectiveness of inventory management
D. Estimating ending inventory and cost of goods sold using gross profit and retail methods
E. Subsidiary ledgers and special journals
F. Financial assets and their valuation on balance sheets; evaluating performance of
merchandising companies
G. Objectives of cash management; internal controls over cash; preparing bank reconciliations
H. Accounting for uncollectible receivables using allowance method and direct write-off method;
evaluating liquidity of accounts receivables
I. Computing and accounting for notes receivable and interest revenue
4.
accounting equation
stable-dollar assumption
business entity concept
cost principle
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3. At December 31, 20xx, the accounting records of Sky Corporation contain the items above. What is the
amount of cash owned by Sky at December 31, 20xx?
a. $46,000
b. $86,000
c. $94,000
d. $686,000
4. Which of the following is a characteristic of a corporation?
a. Declaration of a dividend by the stockholders
b. Appointment of officers by the stockholders
c. Transferability of shares of stock
d. Unlimited liability
5. Which of the following statements best describes the concept of adequate disclosure?
a. The accounting department of a business must inform management of the accounting practices used
to prepare the financial statements.
b. The company must inform users of any significant facts necessary for proper interpretation of the
financial statements, including events occurring after the financial statement date.
c. The independent auditors must disclose in the financial statements any and all errors detected in the
companys accounting records.
d. The financial statements must include a comprehensive list of each transaction that occurred
during the year.
6. What accounting principle governs the timing of revenue recognition?
a. Realization principle
b. Materiality principle
c. Matching principle
d. Depreciation principle
7. What is the correct order of the accounts in the adjusted trial balance?
a. Revenues, expenses, assets, liabilities, owners equity
b. Liabilities, assets, revenues, owners equity, expenses
c. Assets, liabilities, owners equity, revenues, expenses
d. Expenses, liabilities, revenues, assets, owners equity
Earn college credit for what you already know at a fraction of the cost by taking your TECEP online, anytime. www.tesu.edu/tecep
Earn college credit for what you already know at a fraction of the cost by taking your TECEP online, anytime. www.tesu.edu/tecep
Earn college credit for what you already know at a fraction of the cost by taking your TECEP online, anytime. www.tesu.edu/tecep
2. b
3. a
4. c
5. b
6. a
7. c
8. d
9. b
10. d
11. c
12. b
13. a
14. c
15. d
16. a
17. b
18. a
19. d
20. b
Earn college credit for what you already know at a fraction of the cost by taking your TECEP online, anytime. www.tesu.edu/tecep