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ACCT 212 Final Exam (Updated)

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ACCT 212 Final Exam (Updated)

 

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(TCO 3) Closing temporary accounts is necessary at the end of the accounting period. (1) Explain the closing process, include each set of entries required (15 points) and (2) provide an example of closing the Dividend account in the form of a journal entry. (10 points). (Points : 25)

(TCO 2) As required to complete Course Project 1, one must follow the cycle that includes 10 steps to complete the accounting cycle. (1) Explain how to construct an Unadjusted Trial Balance (15 points) and (2) provide an example of the application of the debit/credit rules in the development of the trial balance. (10 points)(Points : 25)

(TCO 5) Discuss the various components of Internal Control (10 points). (2) Explain management’s role in establishing a good internal control environment (10 points). (3) What role does internal auditors and external auditors have in the internal control process? (5 points)(Points : 25)

(TCO 4) Inventory valuation methods determine the cost of goods sold and the inventory balance reported by companies. Companies use FIFO, LIFO, Weighted Average and Specific identification. 1) If costs are increasing, which method would yield the highest gross profit? Why? 2) Which method comes closest to matching current costs and revenues? Why? (Points : 25)

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(TCO 1) Financial statement analysts among others compute ratios to gauge how the company is performing. One such ratio is the Acid-test (or Quick) Ratio. (1) Provide the formula for the Acid-test (or Quick) Ratio. (10 points) (2) Explain why inventories and prepaid expenses are excluded from this calculation (15 points)

(TCO 5) Internal Control Procedures are in place to protect the assets of every business as mentioned in the textbook and our discussions.  Of the seven internal control procedures, list five of these controls and describe how each procedure is implemented. (5 points each with 2 points for listing and 3 points for a description)(Points : 25)

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