AAT Test Outline
The content outline for the AAT Test appears below. If you do not feel comfortable with your basic financial and/or managerial accounting knowledge, you might consider purchasing and reading through one or both of the following study guides:
The test is offered each semester. This semester the dates are:
- Saturday, April 13th
Important Details:
- This semester, the exam will be administered on MyClasses.
- Lockdown Browser will be required to take the exam. Additional information regarding a required simultaneous Zoom meeting will also be provided to those that will be taking the exam.
- Pre-registration and prepayment will also be required this semester via PayPal.
- To register for the testing date of your choice click the link below. Payment information will be provided at the end of the registration.
Testing Date Registration - You must be registered and have paid by Thursday, April 11th at 12pm for the April testing date in order to have access to the exam.
- Once you have registered and paid, you will be enrolled in the MyClasses course for the AAT.
- Any questions? Contact us at DALS@salisbury.edu.
Content Outline:
- Financial Accounting
- Basic Financial Statements
- Income Statement and Retained Earnings/Stockholder’s Equity
- Revenues
- Expenses
- Net income
- Prior period adjustments
- Multi-Step Income Statement for merchandise
- Balance Sheet
- Assets
- Current, Property, Plant & Equipment LT investments, intangibles
- Liabilities
- Current
- Long term
- Owners’ Equity/Stockholders Equity
- Corporation
- Other legal forms – Partnership, LLC, non-profit, sole proprietorship
- Assets
- Statement of Cash Flows
- Interim Financial Statements
- Income Statement and Retained Earnings/Stockholder’s Equity
- Underlying Assumptions and Principles
- Realization
- Conservatism
- Going Concern
- Monetary Unit
- Cost Principle
- Entity
- Time period
- Consistency
- Full disclosure
- Income Determination
- Cash versus accrual basis
- Revenue recognition principle
- At the point of sale/when earned
- Expense recognition
- Matching Principle
- Processing Accounting Information
- The Accounting cycle (including adjusting entries)
- Journals and ledgers
- Fundamental principles of internal control
- Assets and Equities
- Assets
- Cash
- Nature and composition
- Petty Cash
- Bank reconciliations
- Short-term investments (including valuation at lower of cost or market)
- Receivables
- Allowance for uncollectable accounts
- Notes receivable
- Prepaid expenses
- Inventories
- FIFO
- LIFO
- Average cost
- Lower of cost or market
- Inventory systems
- --Perpetual
- --Periodic
- Property, Plant and Equipment; Natural Resources
- Acquisition cost
- Costs subsequent to acquisition
- Depreciation
- Straight line
- Double declining balance
- Units of activity
- Intangible Assets
- Valuation
- Amortization
- Cash
- Liabilities
- Current liabilities
- Bonds payable (including amortization of premium and discount)
- Notes payable
- Contingencies
- Installment loans
- Owners’ Equity/Stockholders Equity
- Corporations
- Common stock and stock splits
- Other contributed capital
- Retained earnings
- Treasury stock
- Dividends
- Declaration date
- Date of record
- Payment Date
- Cash Dividends
- Stock Dividends
- Partnerships and proprietorships
- Corporations
- Assets
- Analysis of Financial Statements
- Profitability Measures (e.g., EPS and ROI)
- Liquidity Measures (e.g., current ratio)
- Solvency Measures (e.g., debt-equity ratio)
- Basic Financial Statements
- Managerial Accounting
- Cost Terminology and Concepts
- Variable vs. Fixed Cost
- Unit vs. Total Cost
- Direct vs. Indirect Costs
- Product vs. Period Costs
- Variable vs. Absorption Costing
- Controllable vs. Non-controllable
- Production costs
- Direct Material
- Direct Labor
- Factory overhead
- Sunk costs
- Inventory
- Materials
- Work in process
- Finished goods
- Contribution approach
- Opportunity costs
- Relevant costs
- Costs of Goods Manufactured
- Centralization vs. Decentralization
- Responsibility accounting
- Cost Centers
- Profit Centers
- Investment Centers
- Segment Reporting
- Internal Service Departments
- Allocation of Factory Overhead
- Bases
- Applying to work in process
- Capital Budgeting
- Analysis Techniques
- Payback period
- Accounting rate of return
- Discounted cash flows
- Net present value
- Internal rate of return
- Analysis Techniques
- Analytical Tools
- Cost/Volume/Profit
- Assumptions
- Graphic solution
- Break-even graphs
- Profit volume chart
- Formulas (e.g. ROI)
- Cost/Volume/Profit
- Job Order Cost
- Characteristics
- Cost Flow
- Process Costs
- Characteristics
- Cost Flow
- Standard Costs and Analysis of Variances
- Standard Setting
- Capacity levels
- Ideal
- Attainable
- Capacity levels
- Types and Analysis of Variances
- Material
- Labor
- Overhead
- Variable
- Fixed
- Disposition of Variances
- Standard Setting
- Cost Terminology and Concepts