First Exam Tips

1. Learn your theory

- practice theory questions in the book (self-test part) + achievement tests from
weygandt in the link I sent
- 30 points theory probably thats multiple choice so make sure you know/get the
lessons and some terms like what are assets or liabs or OE or the accounting equation
etc etc
- est 25 easy points na sa exam haha
- theory is objective part of chapters
- what are limitations of trial balance, etc etc
- what will certain actions do (understate or overstate)
2. For short probs:
- keep answering quizzes and exercises in class/book so that youre more confident in
answering problems and you get a feel
- samplexes also help a bit because samplexes are challenging
3. Long prob is probably a balance sheet or income statement
- know the proper form of a balance sheet (cuz thats usually partial points na_
= name of company, title of financial statement( balance sheet, income statement,
etc) and THE DATE
- Balance sheet is Current Assets, Non-Current Assets (longer than 12 months)
(includes PPE) for the assets part, and then Current Liabs, Non current liabs (longer
than 12 months), and then OE
- use the worksheet (even if not required)
- super helpful to use it because the answers are there na kaagad once you do it
correctly
- dont panic if your final amounts dont balance
- go back to worksheet and trial balance and review your entires cuz you probably
just missed
one detail
- know how to change/locate errors

4. Prepaid expenses and unearned revenues

- know also alternative treatments for Prepaid Expenses
Normal: Dr. Prepaid Expenses Cr. Cash, Dr. Asset Expense Cr. Prepaid Expenses for

what you used that year

Alternative: Dr. Asset Expense Cr. Cash, and then Dr Prepaid Expense Cr Asset
Expense for whats left
- usually there are problems na write journal entries for both approaches, or based on
the given method used, whats the adjusting entry
- unearned revenue is a LIABILITY because you still have to give something to the other
party
- unearned revenue problems will most likely be how much revenue has been earned,
write the journal entry for this, etc etc, make sure you know the types of unearned
revenues (ticket sales, subscription, rent in advance)
- for subscription revenues, the first month they give the magazine or whatever, no
matter what month (kahit March na yung first issue), thats the first month!
5. Accrued Expenses/Revenues
- accrue revenue when earned (not billed to clients yet but already done)
- always accrue by the end of the year
- interest, sal and wages expense usually mga problems given
- know how to solve interest expense accrued :
Amount * rate * x/12 (depending on how many months have passed since the note was
issued)
- know how to change rates from year rate to month/days
- sal and wages exp make sure that you check how many days per week there is work
and when the last day of recording sal and wages payable was

6. Remember accounting equation

-Assets = Liabs + OE
- learn how events change the equation (what will happen when you collect an accounts
receivable? no change because Dr. Cash Cr. A/R so your Assets will still be the same)

7. Know basic accounting assumptions

- economic entity
- monetary unit assumption
- going concern
8. Remember closing entries

- know which accounts are only for balance sheets and which are temporary accounts
(expenses/revenues)
- Dr. Income Summary Cr. Expenses
- Dr. Revenue Cr. Income Summary
- Dr. Income Summary Cr. Ownerss Capital for profit or vice versa for net loss
- Dr. Owners Capital Cr. Owners Drawings