1. 2 nd Midterm Exam Chapters 5 - 9 EBD-301 Accounting & Finance for Entrepreneurs

2. Chapter 5: Working Capital Management What accounts comprise working capital? What is net working capital? What are the three primary working capital accounts? What are the basic rules for managing each? What is the Cash Conversion Cycle? How do the elements affect the CCC?

3. Chapter 6: Payroll Accounting IRS requirements for businesses with employees What are the 4 main Journal Accounts Items subject to payroll withholding Importance of W-4 form Employer portion of Payroll Taxes Why Worker Compensation Insurance

4. Chapter 7: Business Taxation General Obligations of the employer Hobby or Business? Rules for Qualified Joint Venture Qualifications for S-Corporation –Taxation of S-Corporations –Importance of K-1 Form Defining Family Partnerships Limited Liability Companies: organization, taxation

5. Chapter 8: Business Organization What are some important decision criteria with respect to the form of business? How does the form impact the extent of personal liability? What does “piercing the corporate veil” mean? How does the form of business organization affect taxation?

6. Chapter 9: Time Value Compute PVIF, FVIF, PVIFA, FVIFA (formulas provided) Compute present and future value of single sums of money Compute loan payments, amortization schedule (at least first 3 payments) Compute future value of an investment plan; e.g. 401(k), IRA Compute annuity values; e.g. Insurance Annuity, annuitizing a retirement plan