Study Guide for BA 211Z Winter 2025
1st Mid-Term Exam - Wednesday, January 29th at 7 pm
Chapter Coverage – 1, 2, 3, & 4
(T his is only a guide to your study. The exam is closed book and closed note and no note cards.
Expect to answer multiple-choice questions, and to make journal entries [including adjusting and
closing] and to make simple, yet correct financial statements.)
Your textbook, Spiceland 6th edition lists multiple choice questions at the end of every chapter! Have you
worked those M/C questions? The answers to the M/C questions are on the last page of the chapter. Each
chapter contains a section called ‘Let’s Review’ have you looked at these sections?
Chapter 1 – The Financial Statements
Why do decision makers use accounting?
Entity – Going Concern – Historical Cost – Why do we care about these concepts?
Accounting Equation balances always. What is the equation?
Assets, Liabilities, Stockholders Equity, Oh my!
We all have relationships! So how do the financial statements relate?
Chapter 2 – Transaction Analysis
Economic substance is important, why?
Can you draw a T? How about a T-Account?
Can you place the BB and EB correctly? You can if you know what a normal balance is?
What’s a journal entry? Can you post a journal entry to a T-Account?
What’s a debit? A credit is when you get money back, right?
What side does an account increase on? Decrease on?
Accounting cycle is important?
Do you know how information flows through the accounts and statements?
Chapter 3 – Accrual Accounting
Accrual Accounting includes revenue recognition. Do you recognize this fact?
Can you meet the obligation to perform? What is an expense?
Life is about adjustment so can you adjust your accounts?
There are four adjustment types!
Can you close the books?
That is can you write a closing entry?
What does closing really mean? (The account nets to Zero!)
Chapter 4 – Cash and Internal Control
Cash and Cash Equivalents
What is the difference?
Fraud – Can you define it?
What are the components of the Fraud Triangle?
Separation of Duties
Why is this important?
What is collusion?
Internal Control
What is it? And why do we care? Over
