Study Guides (238,237)
Commerce (679)
Final

# Accounting – Final Review.docx

3 Pages
264 Views

School
McMaster University
Department
Commerce
Course
COMMERCE 1BA3
Professor
Semester
Fall

Description
Accounting – Final Review Breakdown is same as 2012 final 10 T/F (one mark each) Chapter 9: 3 questions  Book value equation: BV = Cost – Accumulated Depreciation  How does a loss or gain come about: o Gain (loss) = Cash from sale – BV o Cash > BV = Gain o Cash < BV = Loss  Definition of depreciation: an allocation of cost of asset over its useful life (not a cash flow)  Splitting of basket purchase using relative market values (split land vs. building when bought together)  Capital vs. revenue expenditures (chart)  Definitions of methods, how they work, how to select (accelerated methods) o Double-declining and SYD  Effect on income, expense, accumulated amortization  Double declining balance method short cut calculation o 80% x 80% x 80% x 80% for 4 years  Composition of asset cost (everything spent to acquire the asset and prepare it for it’s intended use) Chapter 10: 2 questions  Conditions (definition, estimate able objectively, one year, refinancing of debt)  Contingent liabilities (if the payout is likely and can be estimated, accrue and record in the notes)  Examples of current liabilities  Blended interest and principal payments and how they work Chapter 11: 2 questions  Calculating issue price of bonds in theory (present value of future cash flows)  Annual interest expense of semi-annual bonds (in-class problem)  Issuance at par, premium or discount (in-class problem)  Trending of columns under premium or discount (in-class example)  Using the straight line method to calculate carrying values or interest expense  Definition of premium or discount and relation to interest expense vs. issue price  Capital lease criteria Chapter 12: 3 questions  Effect of cash dividends on financial statements (in-class example)  Theory of cash dividends  Theory of secondary market, stock splits, cash dividends, stock
More Less

Related notes for COMMERCE 1BA3

OR

Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Join to view

OR

By registering, I agree to the Terms and Privacy Policies
Just a few more details

So we can recommend you notes for your school.