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Passing the CLEP Financial Accounting Exam | |
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About This Book and Testware“ | |
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About the Exam | |
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How to Use This Book | |
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Format and Content of the Exam | |
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About Our Course Review | |
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Special Tools in This Book | |
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Scoring Your Practice Tests | |
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Studying for the CLEP | |
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Test-Taking Tips | |
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The Day of the Exam | |
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Getting Started | |
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Balloon Party, Lauren's New Business | |
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Lauren's First Accounting | |
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The Balance Sheet Introduced | |
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Analyzing the Balance Sheet | |
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Operating Cycle and Fiscal Year | |
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Making Money | |
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Operating the Business | |
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Making Adjustments | |
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The Income Statement Refined | |
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The Statement of Owner's Equity | |
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Keeping Track of Numbers in Accounts | |
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Using T-Accounts | |
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How Operations Affect the Balance Sheet | |
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Watching Over Cash | |
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Lauren Decides She Needs to Watch Over Cash | |
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Cash from Operations | |
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Cash from Investing Activities | |
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Cash from Financing Activities | |
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The Direct Method of Presenting the Cash Flow Statement | |
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Accounting Reports and the Outside World | |
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Other Users of Lauren's Financial Statements | |
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Making Sure the Statements Are Accurate | |
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Debits and Credits | |
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Introducing Debits and Credits | |
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Posting the Start-Up Transactions in the T-Accounts | |
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T-Accounts for Income and Expenses | |
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Posting Operations to T-Accounts | |
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Closing Temporary Accounts | |
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Correcting Errors | |
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Normal Balances of Accounts | |
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Journals and Ledgers | |
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The General Journal | |
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The General Ledger | |
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Specialized Journals | |
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How to Write Vertical Journal Entries | |
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Controls and Ethics | |
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Why Balloon Party Should Have Internal Controls | |
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Lauren Designs Balloon Party's Internal Controls | |
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Ethics | |
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All Internal Controls Are Imperfect | |
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This Chapter Has Not Told Everything | |
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Cash and Short-Term Investments | |
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Reconciling the Bank Statement | |
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Setting Up a Petty Cash System | |
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Investing in Short-Term Securities | |
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Accounts Receivable | |
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Accrual Accounting for Accounts Receivable | |
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Cash Basis Accounting for Sales on Account | |
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The Direct Write-Off Method for Bad Debts | |
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Other Receivables | |
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Discounting a Note Receivable at the Bank | |
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Accruing Interest Receivable | |
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A Customer Dishonors a Note | |
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Loans Receivable | |
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Analysis of Current Assets | |
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Merchandise Inventories | |
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Two Methods for Handling Inventory | |
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The Perpetual Inventory Method | |
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Following the Trail of Debits | |
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The Periodic Inventory Method | |
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Comparing the Four Inventory Systems and Two Methods | |
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Analyzing How Well a Business Handles Inventory | |
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Supplies and Prepaids | |
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Accounting for Prepaid Assets | |
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Two Methods to Account for Operating Supplies | |
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Buying and Selling Plant Assets | |
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Balloon Party Buys a Group of Machines | |
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Repairs or Improvements | |
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Disposing of Fixed Assets | |
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Vertical Journal Entries for Fixed Assets | |
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The Cash Flow Statement and Fixed Assets | |
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Depreciation | |
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Depreciation: Allocating the Cost of Plant Assets | |
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The Depreciation Expense Formula | |
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Depreciation Conventions | |
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The Depreciation Schedule | |
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Changing Accounting Estimates | |
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Land, Natural Resources, and Intangible Assets | |
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Land or Land Improvement? | |
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Assets You Cannot Grab Hold Of Natural Resources | |
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Vertical Journal Entries for Intangible Assets 214 | |
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Current Liabilities | |
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What Does It Mean to "Accrue" a Liability? | |
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Adjusting Entries at the End of the Period | |
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Make Sure Wages Get Counted at the End of the Period | |
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Estimating Warranty Expense | |
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Loan Amortization Schedules | |
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Accruing Interest Expense | |
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Reversing Entries-Making Adjusting Entries Easier | |
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Long-Term Liabilities | |
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What Are Bonds? | |
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Recording the Money Received When Issuing Bonds | |
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Making the Periodic Cash Payments for Bonds | |