Here are about 20 inference problems similar to those in Notes 4 that we covered in class on August 19th. These are NOT assigned as homework, and are NOT required. They are available as additional problems for any student who would like more practice. There are four sections; section 1 has missing data (Type I) inference problems; sections 2 & 3 have missing transaction (Type II) inference problems - the problems in section 3 are significantly more difficult than those in section 2. Finally, section four has a few alternate accounting (Type III) problems similar to the AOL or Microsoft cases (which we will cover in classes 5 and 7 respectively). For the quiz, focus on the first three sections, and don’t worry about revenue recognition issues; all four sections will be relevant for the midterm.

In section 1, the key is to know all of the items which affect a given account, and the use the T-account approach to solve for what you do not know. In sections 2 & 3, the key is to understand the journal entries – both as actually done, and as they should have been done. Once you’ve done that, determining the effect on the financial statements should be relatively straightforward. In section 4, you again want to write out the journal entries under both the actual and the alternate approach; possibly use the techniques in section 1 to solve for any missing data, and then adjust the financial statements as needed. Solutions to all problems are included at the end of the handout.

Here are about 20 inference problems similar to those in Notes 4 that we covered in class on August 19th. These are NOT assigned as homework, and are NOT required. They are available as additional problems for any student who would like more practice. There are four sections; section 1 has missing data (Type I) inference problems; sections 2 & 3 have missing transaction (Type II) inference problems - the problems in section 3 are significantly more difficult than those in section 2. Finally, section four has a few alternate accounting (Type III) problems similar to the AOL or Microsoft cases (which we will cover in classes 5 and 7 respectively). For the quiz, focus on the first three sections, and don’t worry about revenue recognition issues; all four sections will be relevant for the midterm.

In section 1, the key is to know all of the items which affect a given account, and the use the T-account approach to solve for what you do not know. In sections 2 & 3, the key is to understand the journal entries – both as actually done, and as they should have been done. Once you’ve done that, determining the effect on the financial statements should be relatively straightforward. In section 4, you again want to write out the journal entries under both the actual and the alternate approach; possibly use the techniques in section 1 to solve for any missing data, and then adjust the financial statements as needed. Solutions to all problems are included at the end of the handout.
Here are about 20 inference problems similar to those in Notes 4 that we covered in class on August 19th. These are NOT assigned as homework, and are NOT required. They are available as additional problems for any student who would like more practice. There are four sections; section 1 has missing data (Type I) inference problems; sections 2 & 3 have missing transaction (Type II) inference problems - the problems in section 3 are significantly more difficult than those in section 2. Finally, section four has a few alternate accounting (Type III) problems similar to the AOL or Microsoft cases (which we will cover in classes 5 and 7 respectively). For the quiz, focus on the first three sections, and don’t worry about revenue recognition issues; all four sections will be relevant for the midterm.

In section 1, the key is to know all of the items which affect a given account, and the use the T-account approach to solve for what you do not know. In sections 2 & 3,