What This Document Is
This is a midterm examination for an introductory economics course (ECON 2) at the University of California, Berkeley. It’s designed to assess student understanding of core economic principles as applied to a business context, specifically focusing on financial statement analysis and accounting practices. The exam requires students to demonstrate their ability to interpret financial data and apply economic concepts to real-world scenarios.
Why This Document Matters
This resource is invaluable for students currently enrolled in a similar introductory economics course, particularly those with a focus on financial accounting. It’s most beneficial when used as part of a comprehensive study plan, allowing you to gauge your preparedness for a midterm assessment. Reviewing the structure and scope of this exam can help you identify areas where you need further study and refine your test-taking strategies. Understanding the types of questions asked and the level of detail expected is crucial for success.
Topics Covered
* Financial Statement Analysis
* Accounting Equation & Journal Entries
* Statement of Cash Flows (Indirect Method)
* Working Capital Management
* Rate of Return on Equity (ROE)
* Debt to Equity Ratio (D/E)
* Impact of Business Transactions on Financial Statements
* Accrual Accounting Principles
* Allowance for Doubtful Accounts
* Asset Valuation
What This Document Provides
* A full-length midterm examination with allocated point values for each question.
* A series of transaction-based problems requiring application of accounting principles.
* Analytical exercises focused on interpreting key financial ratios and their sensitivity to business events.
* A supplemental financial statement excerpt to be used in answering specific exam questions.
* Clear instructions regarding exam procedures and expectations.
