Practice Accounting Questions

Accounts

• Accounting Equation - A high-level understanding of a company's value
• Account Types - The six basic types of accounts
• Debits and Credits - The two most important words in accounting

  Inventory

• Free on Board - When does title transfer?
• Lower of Cost or Market
• Lower of Cost or Net Realizable Value

  Cash and Cash Flow

• Cash and Cash Equivalents - Two types of assets
• Bank Reconciliation - Do your books match your bank's records?
• Cash Flow From Operating Activities: Indirect Method - How do transactions affect the cash flow from operations when using the indirect method?
• Time Value of Money
• Annuities - What's the value of a stream of payments?

  Leases

• Finance or Operating Lease?

  Bonds

• Journal Entries for Bonds at Par
• Present Value of Bonds - How much is a bond really worth?
• Bonds at a Premium or Discount - How do we compensate for a difference in interest rates?

  Bad Debt

• Percentage of Sales Method for Estimating Bad Debt Expense
• Aging Method for Estimating Uncollectable Accounts

  Depreciation

• Straight-Line Depreciation
• Double-Declining-Balance Depreciation
• Sum-of-Years-Digits Depreciation
• Units of Production Depreciation

  Valuation

• Fair Value Method - A <20% ownership stake
• Equity Method - A 20-50% ownership stake
• Fair Value - Principal markets and most advantageous markets
• Fair Value Hierarchy - How much is this website worth?

  Managerial Accounting

• Fixed or Variable Costs
• Break-Even Analysis
• Labor Efficiency Variance

  Tax

• Deferred Tax Assets and Liabilities
• IRS Tax Forms

  Government Accounting

• Government Forms - The most common SEC and IRS forms
• Governmental Funds

  Misc.

• Common Stock Classifications - issued, outstanding, and treasury
• Financial Ratios
• Sales Discounts - Gross method and net method
• Subsequent Events