Upon successful completion of this course, participants will be able to:

Chapter 1

• Cite an example of a common subsidiary ledger
• Identify what is recorded in the purchase ledger

Chapter 2

• Identify the purpose of an adjusted trial balance or extended trial balance
• Specify where line items in a trial balance originate

Chapter 3

• State the offset account of accrued revenue
• List the purpose of a reversing entry and income summary account
• Identify why accountants are assigned to make journal entries

Chapter 4

• Identify a key issue when consolidating results from divisions
• Cite the importance of closing subsidiary ledgers

Chapter 5

• List an advantage of performing an early bank reconciliation
• Specify the purpose of workflow management systems

Chapter 6

• Define not sufficient funds and lifting fee
• Identify how the closing of petty cash affects the overall close

Chapter 7

• Cite when it is not necessary to record revenue
• List an inefficient way for handling rebillable expenses

Chapter 8

• Identify a way to improve inventory record accuracy
• Define the first in, first out method
• Cite the basis for the retail inventory method
• Specify when overhead may be overabsorbed

Chapter 9

• Cite when interest should be capitalized
• Define carrying amount
• State what should be done when an asset group is impaired

Chapter 10

• Define negative approval
• Cite an example of a situation where accounts payable would suspend payment
• Identify an advantage of accruing an expense based on the purchase order

Chapter 11

• Specify where a commission expense may be classified
• Identify an item for which payroll tax accrual is inappropriate
• Cite how an employee pay raise affects vacation accrual

Chapter 12

• Name a type of income statement that has multiple subtotals
• Identify the purpose of the contribution margin income statement
• Cite a good source document for use when compiling by hand

Chapter 13

• Identify how specific items should be classified on a balance sheet
• List steps used to construct a balance sheet

Chapter 14

• Identify an item included in the investing activities section of a statement of cash flows
• Specify where an increase in trade receivables would be accounted for

Chapter 15

• List an item that could be separately identified on the statement of retained earnings

Chapter 16

• List what should be included when disclosing bad debts, contingencies and commitments, fixed assets, or revenue issues

Chapter 17

• Define segment test and identify how to proceed when cutoffs are not met
• Cite procedure for reporting segment information

Chapter 18

• Identify assumptions and applications of the integral view
• State effects of the discrete view on interim reporting
• Specify when a change in accounting estimate occurs

Chapter 19

• Cite when adjustments should be made to basic earnings per share
• Specify when to subtract interest expense from and items that may reduce diluted earnings per share

Chapter 20

• List a possible consequence of third-party Form 10-Q preparation
• Name a document that may only be issued with board of directors’ approval
• Cite a step in the EDGARizing process

Chapter 21

• Identify when an analytical review is helpful

Chapter 22

• List items to be included in the month-end binder
• Identify what should be part of recordkeeping for public companies

Chapter 23

• Identify good recipients for soft close financial statements
• Cite the date when calendar-year companies would use a soft close
• List situations when a soft close may produce financial statement errors
• Define a virtual close and specify how it differs from a soft close