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BUS A312
EXAM 4 REVIEW SHEET
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CHAPTER 15: Stockholders' Equity
Components of stockholders' equity.
Treasury stock purchases, subsequent sales, and retirement (cost method only).

Cash dividend allocation between preferred and common shareholders when the preferred stock is cumululative versus noncumulative and participating versus nonparticipating.
Cash dividends and stock dividends (small versus large).

Effects on stockholders' equity of various stock and dividend transactions.

CHAPTER 16: Dilutive Securities and Earnings Per Share
Accounting for stock warrants: proportional method versus incremental method.
Accounting for stock options and compensation expense using versus fair value method.
Basic and diluted EPS: know terms and calculations, including weighted average; dilutive effect of the following securities: convertible preferred stock, convertible bonds, and stock options.

CHAPTER 17: Investments
Securities as Investments: unrealized gains and losses for both the trading classification and the available-for-sale classification.
Also be familiar with the held-to-maturity classification: know how to record and where to record.

CHAPTER 18: Revenue Recognition
There are no questions from this chapter on the final exam
.

CHAPTER 19: Accounting for Income Taxes
Taxable income versus financial income: permanent differences versus temporary differences
Know types of transactions create a deferred tax asset or a deferred tax liability
Income tax loss carrybacks and carryforwards.

CHAPTER 20: Accounting for Pensions and Postretirement Benefits
Pension plans: know all terms and types of pension expense
adjustments.

CHAPTER 21: Accounting for Leases
Calculate value of leased asset and lease obligation recorded by the lessee and the effects of a bargain purchase option and a guaranteed residual value.
Types of entries that the lessee would record.

CHAPTER 23: Statement of Cash Flows
Purpose of presenting a statement of cash flows.
Types of transactions that would effect the operating, investing, and financing activities sections of the statement of cash flows.