Purdue Global AC116: Accounting II
AC116 continues from AC114 into the meatier balance-sheet topics (receivables, inventory, plant assets, liabilities, and equity) along with the statement of cash flows. It completes the financial accounting foundation the rest of the accounting program builds on.
Fennie is independent and not affiliated with Purdue Global. This is an unofficial study guide.
What makes it hard
Each unit introduces a new measurement method with its own rules (inventory costing, depreciation, bad debt estimation), and the methods are easy to blur together by midterm. The cash flow statement is the folklore final boss: students who can journal anything still wrestle with operating-activities adjustments. AC114 gaps also resurface here with interest.
What you'll cover
- • Receivables and bad debt
- • Inventory costing methods
- • Plant assets and depreciation
- • Current and long-term liabilities
- • Stockholders' equity basics
- • The statement of cash flows
The AC116 study guide
How to study for Purdue Global AC116, step by step.
- 1
Re-drill AC114 mechanics before week one
AC116 assumes journal entries and the statement relationships are automatic. A weekend re-drilling the accounting cycle pays for itself across all 10 weeks.
- 2
Keep a methods comparison table
FIFO versus LIFO, straight-line versus declining balance, allowance methods: each unit adds methods that blur together by midterm. One running table of when each applies and how it computes is your exam sheet.
- 3
Work each method until you can choose it, not only run it
Assessments increasingly ask which method fits a situation and what it does to income. Practice the selection reasoning alongside the arithmetic.
- 4
Give the cash flow statement its own week of respect
The operating-activities adjustments are the course's hardest material. Start practicing indirect-method problems before that unit opens, and trace every adjustment back to why it's there.
- 5
Tie every topic to the statements
Each estimation and costing choice changes reported income and assets. Noting the so-what per method is what turns mechanical answers into the analysis later courses expect.
Today
Today's AC116 plan
What a Fennie Daily Plan looks like for AC116. Yours is built from your own syllabus and adapts every day to your deadlines and progress.
First plan free, no card required. Fennie is independent and unaffiliated with your school.
FAQ
Is AC116 harder than AC114?
Most students find it comparable but denser. Each unit brings a new measurement method with its own rules, and the statement of cash flows near the end is widely considered the hardest single topic in the sequence.
What does AC116 cover?
The major balance sheet areas: receivables, inventory costing, plant assets and depreciation, liabilities, and equity, finishing with the statement of cash flows, the second half of the financial accounting foundation.
How do I prepare for AC116?
Make sure AC114's mechanics are genuinely automatic: journal entries, adjusting entries, and how the statements connect. AC116 builds new methods on top of that base without reteaching it, and old gaps resurface quickly.