Exam Preparation

Preparing for the Exam

For most students, extensive preparation and study will be required to pass this comprehensive exam. As a first step, students should review their Principles of Accounting textbook, identify areas of weakness, and focus their study efforts on areas where they do not fully understand the accounting concepts. Starting with a review of the textbook will provide a great foundation for success on the exam and in the ACCT 3110 course.

In addition to spending time with the textbook, Pearson has provided study materials via the My Accounting Lab software. The pass rate on the exam is over 90% for students who are spending more than 20 hours practicing sample multiple choice questions in the Study Plan module in My Accounting Lab. As this is a difficult exam, similar to a final exam for UNT's Principles of Accounting course, the overall pass rate is only around 50% so the Study Plan has been very beneficial to students. In order to pass the exam, please plan on studying for this exam like you would for a final exam. You will need to set aside an appropriate amount of time to study, take advantage of all of the materials available to you, and rigorously prepare for the exam. The cost of these study materials is included in the $20 exam registration fee. An access code for the on-line study materials will be provided to the student via an e-mail from the Accounting Department when the student registers for the exam. Information about the study materials is provided in the following link: https://cob.unt.edu/acct/registration-instructions.

Topics Covered on the Exam

Please note that percentages in parentheses represent an approximate estimation of points allocated to that topic.

  1. Overview Material (10%)
    1. Purpose of accounting and GAAP
    2. Basic accounting terms and accounting equation
  2. Accounting Cycle (45%)
    • External transaction journal entries
      1. Posting to ledgers (t-accounts)
      2. Trial balances
      3. Adjusting journal entries (prepaid expenses, unearned revenues, accrued expenses, and accrued revenues)
      4. Four basic financial statements (Income Statement, Balance Sheet, Statement of Cash Flows, and the Statement of Stockholders; Equity)
      5. Closing entries
  3. Cash and Receivables (10%)
    • Accounts receivable and the allowance for doubtful accounts
      1. Notes receivable and interest revenue
      2. Bank reconciliation
  4. Inventory (10%)
    • Valuation methods (FIFO, LIFO, and Average cost)
      1. Purchase and sale of inventory.
  5. Long-Term Assets (10%)
    • Acquisition and sale of long-term assets
      1. Depreciation and amortization
  6. Liabilities (5%)
    • Notes payable and interest expense
  7. Stockholders' Equity (10%)
    • Invested capital (Common Stock)
      1. Retained earnings and dividends
Pearson Study Plan Focus

The best way to pass the exam is to utilize Pearson's My Accounting Lab Study Plan that has been provided free of charge with the special access code included in your registration confirmation e-mail from the Accounting Department.

In order to pass the exam, students should plan on 30 to 40 hours of focused study. Relevant chapters in Pearson's My Accounting Lab Study Plan include Chapters 1-3 (excluding internal controls), Chapters 4-8, and Chapter 10. Chapters 1-7 comprise 85% of the exam.

ACCT 2010 YouTube Lectures

Please see Professor Rumbough's ACCT 2010 lectures via the links below:

Introduction to Accounting

Accrual Entries

Bank Reconciliations

Accounts Receivable

Notes Receivable


Property Plant & Equipment

Bonds Payable


Retained Earnings

Cash Flow Statement