ACG 2021 Suggested Study Topics for Test 2 Chapters 3 4 5 Chapter 3 know the following concepts and be able to apply them accrual basis accounting definition p 108 revenue recognition principle definition application p 108 matching principle definition application p 109 accounting cycle Ill 3 4 p 112 adjusting entries purpose p 112 prepaid expenses p 113 adjusting entries for prepaid expenses p 114 117 unearned revenues p 117 adjusting entries for unearned revenues p 117 119 accrued expenses p 119 adjusting entries for accrued expenses p 119 121 accrued revenues p 121 adjusting entries for accrued revenues p 121 122 Ill 3 8 3 9 adjusted trial balance p 126 Ill 3 11 Ill 3 12 Ill 3 13 classified balance sheet current assets long term assets current liabilities long term liabilities p 129 130 Ill 3 14 temporary accounts permanent accounts p 131 closing entries purpose p 131 journalize closing entries p 132 Ill 3 15 post closing trial balance p 135 Ill 3 18 Work the Let s Review p 112 123 136 Chapter 4 know the following concepts and be able to apply them occupational fraud p 166 internal controls definition p 166 common examples of preventive controls p 169 170 examples of detective controls p 170 responsibilities for internal controls p 171 limitations of internal control p 171 collusion p 171 cash cash equivalents p 172 controls over cash receipts p 173 175 controls over cash disbursements p 175 176 bank reconciliation p 176 180 Ill 4 9 know what should be added or deducted to the bank statement balance or the company balance journal entry to adjust cash balance for bank statement items p 180 181 petty cash p 182 184 journal entries to establish and replenish skip the from Reporting Cash on p 184 to the end of the chapter Work the Let s Review p 182 Chapter 5 know the following concepts and be able to apply them accounts receivable def p 214 sales discounts calculate now how to interpret if written for example 2 10 n 30 and make the journal entry for the sales transaction the collection within the discount period or the collection after the discount period contra revenue account and income statement presentation Ill 5 1 p 215 217 net realizable value p 219 allowance method p 220 calculate the estimated amount of bad debts using percentage of receivables p 221 journal entry to record bad debts p 221 journal entry to write off an account receivable p 223 journal entries to collect an account previously written off p 224 estimating uncollectible accounts in the following year p 226 very important bad debt exp on income stmt Ill 5 9 allowance for uncollectible accounts on the bal sheet Ill 5 10 skip aging of accounts receivable p 227 230 direct write off method p 230 231 only know why we DON T use this for GAAP notes receivable know entries and interest calculations p 232 236 Work the Let s Review p 182 218 236 Work the Practice assignments in Connect for extra practice on the calculations problems but also be sure to understand concepts related to the items listed above Bring a pencil and a calculator to the exam You cannot use your cell phone
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