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.
Build my AC116 study planWhat 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 just 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.
- 6
Keep the methods straight with Fennie
Upload your AC116 materials and Fennie builds a Daily Plan that paces each method's practice ahead of its Tuesday deadline, with flashcards and quizzes generated from the actual content so FIFO and LIFO never blur on an assessment. Free to begin.
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How Fennie helps with AC116
Fennie's Daily Plans pace AC116 so each measurement method gets drilled before the next one arrives to blur it — and the cash flow unit gets the extra runway it notoriously needs. Chat through why an operating-activities adjustment exists rather than just memorizing it, and use generated quizzes to test method selection, not just computation.
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.
Pass AC116 with a plan, not a cram
Upload your AC116 materials and Fennie generates a Daily Plan paced to your deadline — plus chat, flashcards, and quizzes built from the actual course content.
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