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The ACCT504 Midterm will be an online open-book, open-notes, open-computer exam with a time limit of 2 hours and 30 minutes. It will be worth 150 points or 15% of the course grade. The Midterm is multiple pages and consists of 30 multiple choice questions, one essay question, and one problem. The multiple choice questions are worth 3 points each. Some of the multiple choice questions are problem-based. There is also one essay question worth 25 points and one problem worth 35 points. Terminal Course Objectives A, B, C, D, and E are all addressed on this exam. For the multiple choice questions worth 90 points, you should 1. know what information is desired by external users of financial statements; 2. know about operating activities, investing activities, and financing activities; 3. be able to calculate net cash provided by operating activities in a simple situation (by identifying which activities are operating activities); 4. know the definitions of asset, liability, equity, revenue, and expense; 5. know what items appear under each classification in the balance sheet; 6. know how to compute earnings per share; 7. know the composition of a retained earnings statement; 8. know about a ledger account, its different parts, the rules of debit and credit, and the meaning of the term normal balance of an account; 9. know about revenue recognition principle, matching principle, and time-period assumption; 10. know the computation net income under accrual accounting (revenuesexpenses); 11. know the meaning and purpose of adjusting entries, and the different types of adjusting entries; 12. know the difference between periodic and perpetual inventory systems; 13. know how to calculate net cost of purchases when terms of payment look like, for example, 3/10 n/45; 14. know the components of cost of merchandise inventory (e.g., invoice price less discount plus what other items are included?); 15. know the main points of difference among the four inventory cost-flow assumptions that you learned about; 16. know how to prepare a single-step and multiple-step income statement and calculate certain ratios based on the numbers in the income statement; and 17. know about an accounting information system and its components (e.g., ledger accounts, trial balance, etc.). For the essay question worth 25 points, you should 1. Know about a ledger account, its different parts, the rules of debit and credit, and the meaning of the term normal balance of an account; and 2. Know about an accounting information system and its components (e.g., ledger accounts, trial balance, etc.). For the problem question worth 35 points, you should
Helpful Textbook Problems Problem 1-3A on page 35 Problem 1-4A on page 35 Exercise 2-4 on page 79 Exercise 2-7 on page 80 Exercise 3-1 on page 140 Exercise 3-16 on page 144 Problem 3-2A on pages 145 and 146 Exercise 4-4 on page 204 Exercise 4-13 on page 207 Exercise 5-7 on page 260 Problem 5-4A on pages 263 and 264 Exercise 6-4 on page 315