STUDY GUIDE – FINAL EXAM

The course exam consists of 25 multiple choice questions valued at 3 points each, and 5 Short
Answer computational questions valued at 25 points each. The questions found on your exam
are selected randomly from a pool of questions but will represent topics studied that satisfied all
Terminal Course Objects (TCO) as found in the course syllabus.
Multiple choice questions are in a pool of 75 questions that represent each of the TCOs and come
from all of the chapters of the textbook covered during the course. Some of these questions
may be found in the weekly quiz, but not necessarily.
The short answer computational questions are pooled as well, from a pool of 15. TCO 3, 4, 5, 6
& 7 are represented (intangibles and leases are well covered in the multiple choice questions).
The short answer responses will cover questions pertaining to the basic calculations and journal
entries for depreciation, removal of assets, investments in securities (trading securities, available
for sale, and equity method), current liabilities, contingent liabilities, Bonds using effective
interest method (discount and premium), as well as straight line amortization of bond discount.
Pay special attention from whose perspective you will be doing the computations and journal
entries. For example, in the bond discount situation, read the question carefully as to whether
you will be making entries for the issuer of the bond or the investor.
With respect to the bond short answer questions, you will need to have a copy of Table 2 -
the present value of an annuity table; and table 4 the present value of an ordinary
annuity table present before you start the exam. I suggest you print out a copy of
each and have it in front of you before you start the exam. Remember when using these
tables, if interest is semi-annual, then you cut the interest in half, and double the time period to
find the factor at the intersection of row and column that you need. For example, if the effective
interest rate is 10%, and the bond is 10 years, then the factor at the intersection of Column of
5% and Row of 20 periods would be used, so in Table 2 (present value of an annity) the factor
would be .37689, for example. Likewise, if present value of an ordinary annuity (Table 4) were
used, so the factor would be 12.46221 (at the intersection of 5% and 20 periods).
Examples of all of the computations and journal entries are easily found the textbook (many
times in illustrations or graphics); thus, only math errors would render the answer incorrect. It
is suggested that all computations are completed twice with a calculator.
Time management is critical to completing this exam. It is suggested that the student complete
the multiple choice questions from knowledge saving time to spend researching and computing
the answers to essays and computational problems respectively. Once complete the student
could recheck the answers to the multiple choice questions.
Keep an eye on the remaining time and save your work often, because when the time limit is
reached you will automatically be exited from the exam.
Please also note that during the exam time, copy/paste and printing are disabled.