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The Topical Coverage of the exam will be:

$1)$ Environment and structure of Accounting

a$.$ Primary Focus of Accouting

b$.$ Four basis financial statements in order that they are prepared

c$.$ Know the users of the financial statements

d$.$ Know primary objective of financial accounting

e$.$ Know two basis of accounting and which one is approved by GAAP

f$.$ What does GAAP stand for

g$.$ Know the hierarchy of GAAP

h$.$ What is current GAAP in

i$.$ What is conceptual framework

i$.$ The ten elements

ii$.$ Know all the Qualitative characteristics

iii. Constraints

iv$.$ Know all the Recognition and measurements concepts

j$.$ What is the cost concept for financial statements

i$.$ Know the five attributes that make it up

$2)$ Review of financial accounting

a$.$ What is the balance sheet equation

b$.$ What is the expanded balance sheet equation

c$.$ Know the basic seven entries

d$.$ Know double entry accounting

e$.$ What is a general ledger

f$.$ What is an account

g$.$ Know the system of debits and credits

h$.$ Whats a journal

i$.$ Know the four classes of assets, two classes of liabilities and the basic capital accounting and definition of revenue and expenses

j$.$ Know the three types of business activities as reported on the statement of cash flow

k$.$ Know the ten elements of the financial statements $($there is a posting in Moodle of these$)$

Chapter $1,$ know:

a$)$ Capital markets

b$)$ Debt financing

c$)$ Equity financing

d$)$ Finance

e$)$ Financial management

f$)$ Gift financing

g$)$ Government financing

Chapter $2,$ Know:

a$)$ Accrual Basis of Accounting

b$)$ Accounts receivable turnover

c$)$ Number of days sales in AR

d$)$ Acid$-$test ratio

e$)$ Current ratio

f$)$ Debt ratio

g$)$ GAAP

h$)$ Inventory turnover ratio

i$)$ Number of days inventory on hand

j$)$ Leverage

k$)$ Liquidity

l$)$ Market value

m$)$ Net profit margin

n$)$ Net Profit Margin $\%$

o$)$ Gross profit margin

p$)$ Gross profit margin $

q$)$ Quick ratio

r$)$ Return on equity ratio

s$)$ Rate of return $($chpt $3)$

t$)$ Total asset turnover ratio

Chapter $3.$ Know:

a$)$ Rate of return

Chapter $4,$ know: Nothing from Chapter $4$

Chapter $5,$ know:

a$)$ Accounting profit

b$)$ Corporate veil

c$)$ General partnership

d$)$ Jock tax

e$)$ Opportunity cost

f$)$ Subchapter c corp $($regular corp$)$

g$)$ Subchapter S corp

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