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Gavin Walton
- July 21, 2024
Hello, future money whiz! Welcome to your comprehensive guide to acing the Study.com Accounting 201: Intermediate Financial Accounting I final proctored exam. If you are reading this, most likely you are beginning to feel slightly excited and maybe a tiny bit nervous about taking this course. Fear not! This study guide is designed to assist you in taking control of this class and leading you toward great success.
So what’s the big deal with Accounting 201? This is a course that studies financial accounting in-depth, and its objective is to impart some important principles and practices relevant to preparation. By the time you finish this course, you will have acquired the ability to analyze definitions and explanations of concepts on subjects as critical as financial accounting terms; balance sheets, income statements, cash flow evaluations; business transactions; and many others.
Be it while striving for an accounting career or simply for the sake of doing well in this course so that you can pass it and get your degree, this guide will demystify anything you need to know in a friendly, easy-to-follow manner. We will present below what one should expect from the class, followed by a week-by-week study plan, key topics to focus on, and some external resources that will make studying a breeze.
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What to Expect from Accounting 201 Class 📖
Okay, let me go over what you can look forward to as you take Accounting 201: Intermediate Financial Accounting I. This course is juiced with important data that can assist in passing the final proctored examination and gaining an understanding of financial accounting principles.
Key Topics Covered
Here’s a quick overview of the main topics you’ll explore in this course:
Overview of Financial Accounting
- Financial accounting vs. managerial accounting
- Key accounting principles and systems
- Importance of GAAP (Generally Accepted Accounting Principles) and SEC regulations
Ethical and Theoretical Frameworks
- GAAP and IFRS (International Financial Reporting Standards)
- Periodic reporting and financial statements
- The role of FASB and IASB
Preparing and Analyzing Financial Statements
- Balance sheets, income statements, and cash flow statements
- Understanding and preparing financial disclosures
- Evaluating company assets, liabilities, and equity
Time Value of Money and Cash Flows
- Cash receipts and payment journals
- Direct and indirect methods for preparing cash flow statements
- Annuities and discounted cash flows
Accounting Systems and Controls
- Internal controls and safeguarding assets
- Common financial information problems
- Cash control, disbursements, and bank reconciliation
Inventory Process and Business Transactions
- Inventory control systems and valuation methods
- Recording transactions and asset management
- Depreciation, amortization, and depletion
Financial Ratios and Business Applications
- Key financial ratios like EPS, P/E, ROE, and debt-to-equity
- Working capital and quick ratios
- Using financial ratios for business decision-making
Course Structure
The course content is provided to you in short video lessons. The videos are generally 5-10 minutes long and contain lesson-end quizzes to test the knowledge you acquire. After you have gone through an entire chapter, you will also be faced with a chapter-end quiz to evaluate your overall memory of the subject matter. Once you’ve completed all the chapters, you can take a practice test and use the study tools provided to prepare for the final proctored exam.
So, gear up! This course will require dedication and effort, but with the right preparation, you’ll be able to master all these concepts and more.
Week-by-Week Study Plan to Ace Accounting 201 Exam📝
Okay, here is the schedule of your study sessions for the intermediate financial accounting I-Accounting 201 course: This schedule will help you to stay on course and ensure that you focus on all the important areas, without being overloaded. Let’s get started!
Week 1: Introduction and Financial Accounting Basics
- Topics to Cover:
- Overview of Financial Accounting
- Accounting Principles
- Fields of Accounting
- The Accounting Cycle
- Activities:
- Watch all video lessons in Chapter 1.
- Complete the chapter quizzes.
- Create flashcards for key terms (e.g., GAAP, FASB, SEC).
- External Resources:
- Accounting Basics on YouTube
- Quizlet Flashcards on Accounting Basics
- Goal: Understand the foundational concepts of financial accounting and get comfortable with the terminology.
Week 2: Ethical and Theoretical Frameworks
- Topics to Cover:
- GAAP Overview & Rules
- International Financial Reporting Standards (IFRS)
- Periodic Reporting and Financial Statements
- Activities:
- Watch all video lessons in Chapter 2.
- Complete the chapter quizzes.
- Summarize the differences between GAAP and IFRS in your notes.
- External Resources:
- GAAP vs. IFRS on YouTube
- Quizlet Flashcards on GAAP
- Goal: Gain a clear understanding of the accounting principles and the regulatory frameworks that govern financial reporting.
Week 3: Balance Sheet Preparation
- Topics to Cover:
- Balance Sheet Definition, Format & Examples
- Preparing and Analyzing Balance Sheets
- Activities:
- Watch all video lessons in Chapter 3.
- Complete the chapter quizzes.
- Practice preparing a balance sheet using sample data.
- External Resources:
- How to Prepare a Balance Sheet on YouTube
- Quizlet Flashcards on Balance Sheets
- Goal: Be able to prepare and analyze balance sheets accurately.
Week 4: Income Statement Preparation
- Topics to Cover:
- Income Statement Overview, Format & Examples
- Operations of an Income Statement
- Activities:
- Watch all video lessons in Chapter 5.
- Complete the chapter quizzes.
- Create flashcards for key components of the income statement (e.g., revenue, expenses, net income).
- External Resources:
- How to Prepare an Income Statement on YouTube
- Quizlet Flashcards on Income Statements
- Goal: Understand the structure and preparation of income statements.
Week 5: Cash Flows and Time Value of Money
- Topics to Cover:
- Cash Receipts and Payment Journals
- Cash Flow Statements (Direct & Indirect Methods)
- Time Value of Money Concepts
- Activities:
- Watch all video lessons in Chapter 6.
- Complete the chapter quizzes.
- Solve practice problems related to cash flows and the time value of money.
- External Resources:
- Cash Flow Statements on YouTube
- Quizlet Flashcards on Time Value of Money
- Goal: Master the concepts of cash flow management and the time value of money.
Week 6: Accounting Systems and Controls
- Topics to Cover:
- Internal Controls in Accounting
- Safeguards & Controls of Banking Activities
- Cash Control
- Activities:
- Watch all video lessons in Chapter 9.
- Complete the chapter quizzes.
- Research real-world examples of internal controls and cash control measures.
- External Resources:
- Internal Controls in Accounting on YouTube
- Quizlet Flashcards on Internal Controls
- Goal: Understand the importance of internal controls and how they protect a company’s assets.
Week 7: Inventory Process and Business Transactions
- Topics to Cover:
- Inventory Control Systems
- Recording Transactions in Accounting
- Depreciation Methods
- Activities:
- Watch all video lessons in Chapters 10 and 11.
- Complete the chapter quizzes.
- Practice recording inventory transactions and calculating depreciation.
- External Resources:
- Inventory Accounting on YouTube
- Quizlet Flashcards on Depreciation
- Goal: Be able to manage inventory accounting and understand the methods of recording business transactions.
Week 8: Financial Ratios and Final Review
- Topics to Cover:
- Key Financial Ratios (EPS, P/E, ROE, etc.)
- Review of All Key Topics
- Activities:
- Watch all video lessons in Chapter 13.
- Complete the chapter quizzes.
- Create a summary sheet of all key formulas and concepts.
- Take practice exams to assess your knowledge.
- External Resources:
- Financial Ratios on YouTube
- Quizlet Flashcards on Financial Ratios
- Goal: Solidify your understanding of key financial ratios and review all major topics to ensure you’re ready for the final exam.
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Free External Resources to Study 📂
Although you possess the Study, do not underestimate it since it is one of the favorable grounds. While having materials in front of you, sometimes it is good to have something additional to make sure that the certain concept is fully understood. Also, it is pleasant to receive the same information explained in various forms. Here are some free external resources that can help you master the content in Accounting 201: Intermediate Financial Accounting I:
YouTube Channels & Playlists
- Accounting Stuff – This channel offers clear and concise explanations of various accounting topics. Check out their playlists on Financial Accounting for helpful videos.
- Edspira – Another great resource, Edspira offers in-depth tutorials on accounting concepts. Their Financial Accounting playlist is particularly useful.
- Khan Academy – Known for its high-quality educational content, Khan Academy has a comprehensive Accounting and Financial Statements playlist.
Quizlet Flashcards
- Financial Accounting Terms – Quizlet has numerous flashcard sets that can help you memorize key terms and concepts. Check out this set for a good start.
- Intermediate Accounting – For a more advanced review, this Quizlet set covers terms and concepts relevant to your course.
Free Online Courses and Articles
- Coursera: Financial Accounting Fundamentals – While Coursera courses can sometimes be paid, many offer free audits. This course provides a solid foundation in financial accounting.
- Investopedia – A go-to site for all things finance, Investopedia has excellent articles on accounting principles and financial statements. Start with their Financial Accounting section.
Study Guides and Practice Exams
- AccountingCoach – This site offers a wealth of free accounting tutorials and practice questions. Check out their Financial Accounting Topics.
- Principlesofaccounting.com – Another great resource for free tutorials and practice problems. Their Financial Accounting section is particularly helpful.
Interactive Tools
- Desmos Scientific Calculator – You’ll need a reliable calculator for your exams. Desmos offers a free online scientific calculator that you can use for practice.
- Wolfram Alpha – This powerful computational engine can help you solve complex accounting problems. Check it out here.
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Key Topics to Focus On 🔑
According to the learning objectives of Accounting 201: Intermediate Financial Accounting I, there are several topic areas on which you must build to perform well. In this section, we will therefore clarify some theoretical knowledge of key concepts and deepen their understanding, describe similarities and differences between related concepts, and cite practical examples, accordingly.
Financial Statements: Balance Sheet vs. Income Statement
Balance Sheet
- Definition: A financial statement that provides a snapshot of a company’s financial position at a specific point in time.
- Components:
- Assets: What the company owns (e.g., cash, inventory, equipment).
- Liabilities: What the company owes (e.g., loans, accounts payable).
- Equity: The owner’s interest in the company (e.g., retained earnings, common stock).
- Formula: Assets = Liabilities + Equity
Income Statement
- Definition: A financial statement that shows a company’s financial performance over a specific accounting period.
- Components:
- Revenue: Income from sales or services.
- Expenses: Costs incurred to generate revenue.
- Net Income: Revenue minus expenses (profit or loss).
- Formula: Net Income = Revenue – Expenses
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Aspect
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Balance Sheet
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Income Statement
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Purpose
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Snapshot of financial position
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Performance over a period
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Key Elements
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Assets, Liabilities, Equity
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Revenue, Expenses, Net Income
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Formula
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Assets = Liabilities + Equity
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Net Income = Revenue - Expenses
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Timing
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Specific point in time
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Over a specific period
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Depreciation Methods: Straight-Line vs. Double-Declining Balance
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Aspect
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Straight-Line Depreciation
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Double-Declining Balance Depreciation
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Calculation
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Evenly spread over the useful life
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Accelerated, more in earlier years
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Formula
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(Cost - Residual Value) / Useful Life
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2 * (1/Useful Life) * Book Value
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Year 1 Example
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($10,000 - $2,000) / 4 = $2,000
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2 * (1/4) * $10,000 = $5,000
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When to Use
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When uniform expense is needed
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When more expense is justified earlier
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Key Financial Ratios: Understanding Their Importance
Working Capital Ratio
- Definition: Measures a company’s ability to cover its short-term obligations with its short-term assets.
- Formula: Current Assets / Current Liabilities
- Ideal Range: 1.2 to 2.0
- Example: A company with $50,000 in current assets and $30,000 in current liabilities has a working capital ratio of 1.67.
Quick Ratio
- Definition: Measures a company’s ability to meet its short-term obligations without relying on the sale of inventory.
- Formula: (Current Assets – Inventory – Prepaids) / Current Liabilities
- Ideal Range: Above 1.0
- Example: A company with $50,000 in current assets, $10,000 in inventory, and $30,000 in current liabilities has a quick ratio of 1.33.
Earnings Per Share (EPS)
- Definition: Indicates how much profit is attributed to each share of stock.
- Formula: (Net Income – Preferred Dividends) / Weighted Average Shares Outstanding
- Example: A company with a net income of $100,000 and 10,000 shares outstanding has an EPS of $10.
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Ratio
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Definition
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Formula
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Ideal Range/Example
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Working Capital
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Ability to cover short-term obligations
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Current Assets / Current Liabilities
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1.2 to 2.0 / Example: 1.67
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Quick Ratio
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Ability to meet obligations without inventory
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(Current Assets - Inventory - Prepaids) / Current Liabilities
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Above 1.0 / Example: 1.33
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Earnings Per Share (EPS)
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Profit attributed to each share of stock
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(Net Income - Preferred Dividends) / Shares Outstanding
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Example: $10
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Real-World Examples
- Income Statement Analysis: Let’s take a scenario where you own a coffee shop. You receive a revenue of $50,000 from sales and you spend a total of $30,000. So your overall net income is $20,000
- Depreciation in Action: You spend money to buy a van for delivery at a price of $20,000. Using straight-line depreciation, if the van has a lifetime of 5 years and it has a residual value of $5,000, the annual depreciation expense is calculated to be $3,000.
By focusing on the discussed topics above, you will be well prepared to tackle the final exam of this course with ease.
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FAQ: Exploring the Horizons of Digital Accounting 201❓
Q: What is the best way to study for the proctored final exam?
Answer: Based on what has been mentioned above, the most effective technique on how to prepare for the proctored final exam is to set up a timetable of study (as exemplified in this article), take down notes diligently during the lessons, and engage in frequent quizzes using flash card and mock tests. Remember to incorporate outside sources such as YouTube videos and Quizlet flashcards to make ideas more concrete and aid in better concept mastery.
Q: How can I ensure I understand all the accounting principles and concepts covered in the course?
Answer: To ensure you understand all the accounting principles and concepts, break down each topic into smaller sections and study them one at a time. Utilize the flashcards provided on Study.com, participate in study groups, and seek additional explanations through external resources. Practice problems are also essential for mastering accounting concepts.
Q: Can I use any resources during the proctored final exam?
Answer: A proctoring final examination where you are only allowed to use blank paper, a pen or pencil, a non-graphing scientific calculator, and the formula sheet provided in this Studying for Accounting 201 chapter. However, the use of textbooks, notes, mobile phones, or any other material or online resource which are not included in the formula sheet is prohibited.
Q: What should I do if I don’t pass the final exam on the first attempt?
Answer: In case you fail the final exam the first time around do not lose heart. In the case where you are not satisfied with your results, you can rewrite the exam after 72 hours. Given this opportunity, read through the sections you considered difficult, go back to your notes, and attempt more practice tests. Each time you do the exam, you are allowed to do it twice, then make it an effective learning process.
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Conclusion 📄
Thus, I have managed to complete the entire guide to Accounting 201: Intermediate Financial Accounting I at Study. with the knowledge, tools, and study strategy gained here at study.com, you are now all geared up to score high in this course and the final proctored exam. Stick with your weekly study plan, remember to use flashcards, and solve practice questions as scheduled. In times of difficulty do not hesitate to look for help and maintain an optimistic attitude in the learning process. The knowledge and skills that you are going to gain here will create the groundwork for your future profession in accounting. Gather pace, keep on asking questions, and embrace and savor the learning process. always bear in mind that you are not preparing for an examination and more than that you are preparing for your future career in the accounting field. Accept the described studying schedule, use additional resources, and show everyone your abilities in accounting.
Good luck, and may the force be with you in your studies as well.
