HFT 2401 Exam 3 Review

Exam will cover: Chapter 8 – Cash & Internal Controls Chapter 9 – Receivables & Payables Chapter 10 – Inventory Chapter 11 – Assets & Depreciation Chapter 12 – Liabilities & Payroll

Chapter 8 – Cash & Internal Control Vocabulary Samples  Imprest account  Steps to a bank reconciliation  Purchase discounts Problem  Bank Reconciliation

Chapter 9 – Receivables Vocabulary samples  Trade receivables  Discounting / Factoring Problem  Cash flow projections

Chapter 10 - Inventory Vocabulary samples  FIFO,LIFO,Perpetual,Periodic  Effect on profit from calculation errors  LIFO vs. FIFO in an inflationary climate  FOB destination vs. FOB shipping Problem  Inventory valuation (quiz 4)

Chapter 11 – Assets & Depreciation Vocabulary samples  Revenue vs. capital outlay  What is / is not included in the purchase price of an asset  Intangible assets Franchise Trademark Patent Goodwill Copyright Problem – Depreciation

Chapter 12 Liabilities & Payroll Vocabulary  Loss contingency Expected to happen – accrue estimate  Contingent liability May happen – no accrual – make note

Other items Scantron (brown form 2052) Pencils Formula sheet will be provided Calculator