Hi Everyone,
I'm back! I passed CLEP Principles of Accounting with a 68.
First of all, let me just say that this was the most difficult exam I have taken so far. The questions on Principles of Finance and Principles of Statistics were equally as challenging. However, both those exams were UNTIMED, and I could use a CALCULATOR. As a result, I found the Accounting exam to be more difficult than either of those other exams.
Here's the key to cracking the CLEP Principles of Accounting exam.
1) Spend more time studying for this one than you normally would for other exams.
This exam covers TWO SEMESTERS of accounting (Financial and Managerial). So, unless you have a background in accounting, there is just too much information to grasp in too short a period of time. I can normally pull off a high score on most exams with between two and seven days of intense studying. For this one, I studied almost non-stop for eleven days straight.
2) Read the following two online books in their entirety:
http://www.principlesofaccounting.com/
http://www.accountingcoach.com/index.html
You don't need to thoroughly MASTER everything in the above books, but you do need to be FAMILIAR with most things covered.
3) After you have read the two books above, then you can go through Instantcert. The books will give you the "Big Picture", so that as you work through Instantcert, it will make much more sense to you.
4) Make sure you have MASTERED all the basics:
- Accounting Cycle
- Accounting Principles
- The Financial Statements (what's included in each, their purposes, their uses, etc.)
- Debit versus Credit (Which accounts are credited, which are debited. T-accounts, etc.).
- Bonds, dividends, stocks.
- Breakeven, Depreciation, Net Income, COGS, Retained Earnings, Revenue/Expenses, Gains/Losses, Owner's Equity, etc.
5) Know the following ratios (there are many others, but these are essential):
- Payback Period.
- Cash, Current, Quick.
- Book Value Per Share, Price to Earnings, Earnings Per Share.
- ROA, ROI, ROE.
- Debt Ratio.
- Inventory Turnover
6) I told you you'd need more time to study, didn't I?
7) Try to grasp as much of the Managerial Accounting stuff as possible. But don't be disheartened if it starts to go way over your head at some point.
8) It is a thorough understanding of the BASICS that will enable you to pass this exam. Everything else is just icing on the cake (bonus points).
9) Try not to panic when you are taking the actual exam. Some of the questions might/will freak you out (they did me). But you have to stay focused.
- Go through the entire exam and answer every question that seems easy to you.
- Skip any questions that instantly make your eyeballs bleed.
- After you have answered all the easy questions, go back to the beginning and try to answer as many of the tough questions as possible.
- MANY TIMES, a question that I skipped on my first run through, actually turned out to be quite simple after taking some time to read the question fully.
- If you still cannot answer a question, GUESS, then MARK it (you'll probably be running out of time by now).
- After you have gone through and answered as many of the tough questions as possible, go back through the ones you guessed on (they should now be marked). Give it your best shot! You have nothing to lose. If all else fails and time runs out on you, at least you have already made a GUESS.
- Don't leave ANY question unanswered!
10) If you studied well and learned all the basics, you will be able to answer the majority of the questions (including several that seemed tough at first). Do your best on the rest!
11) You CAN score well on this exam, even if you don't thoroughly understand all the more complex concepts and managerial accounting stuff.
12) The "curve" (or scale), will TOTALLY help you on this exam, as long as you understand ALL the basics.
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Please don't get discouraged as you try to study all the complex stuff.
It's your thorough knowledge of the BASIC PRINCIPLES that will carry you through.
Of course, the more of the complex concepts you can grasp, the higher your score will be. But this exam is pass/fail....and passing only requires that you master the basics. Everything else will earn you bonus points!
I hope this helps,
Snazzlefrag
) Anyway, to answer the question you posted...I would recommend taking Accounting before Finance if you can. I commend Snazzlefrag for tackling the Finance exam first, especially since he doesn't have a background in accounting. But I really think getting all of the basics of Accounting down will help you when it comes time to studying for Finance.
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