A mixture of multiple-choice, fill in the blank calculations and journal entry type questions on chapters 15,16 and 18 of intermediate accounting 2. Chapter 15 is on stockholder’s equity, 16 is on dilutive securities and earnings per share, and 18 is on revenue recognition. an hour is given to complete it.
Study guide
Chapter 18:
- What does the asset-liability approach mean within revenue recognition
- Revenue is recognized after going through the 5 steps of revenue recognition. The journal entry to recognize revenue involves a credit to a revenue account (e.g., sales revenue, service revenue)
- Understand the decisions and estimates that are made in each step of the revenue recognition process
- How does a “seller” record a repurchase agreement
- Know the difference between cost and fair value, and when each is used in journal entries
Journal Entries
- Returns with Credit Sales
- Sales on Consignment
Chapter 15:
- What are the rights of shareholders of common stock
- What are the similarities of preferred stock and debt
- How do share repurchases influence the ratio of earnings per share
- What accounts are debited and credited when stock is issued
- How do stock splits and stock dividends affect shares issued and par value
Journal Entries
- Stock issued with other securities
- Stock Dividends
Chapter 16:
- What adjustments are made to basic EPS to get to diluted EPS
- How is stock-based compensation expense recorded
Journal Entries
- Convertible preferred stock
- Stock Compensation – Restricted Stock
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