Financial accounting

[hidetoshidecide]

I took the CLEP and DSST exams for this a few months ago. I failed the CLEP with a 47, went back and took the DSST a week later and got a 67.

I don't feel that there's a major difference in difficulty between the two- I just took the CLEP coming right off Xmas and while I had been studying for several weeks, I wasn't as fresh as I should have been.

With regard to prep, I used principlesofaccounting.com exclusively. Make sure that you answer all of the end of chapter questions for each chapter: Goals Achievement, fill in the blank, and the multiple choice. I really cannot stress this enough. You cannot just skim the book and pass- you have to have a good understanding of the concepts and be able to work problems in order to pass.

A couple of pointers:

Chapters 17 and after at P. of Acc. relate to managerial accounting. Ignore them- this test deals only with financial accounting.

Make sure you know how to calculate cost of goods sold. I cannot stress this enough.

The beginning of chapter 16 has a summary of all the various accounting ratios that were taught earlier in the book. This is very useful! Make sure that you memorize all of these. If I had to single out some as being most important, it would be the liquidity ratios(current and quick) and the turnover ratios(accts. receivable and inventory). But really, memorize them all.