ACCT 3122 EXAM (SUA) QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2026/2027

ACCT 3122 EXAM (SUA) QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2026/2027 to create value - Answers what is the purpose of a company? a company transforms resources into goods and services that it sells to customers - Answers how does a company create value? The accounting system is used to - Answers -measure, record, categorize, and summarize the daily operating activities -provide accountability of all levels of management for their responsibilities -protect business assets from unauthorized use or consumption 9 Step Accounting Cycle - Answers 1. Transactions Occur 2. Prepare Documents 3. Record in Journals 4. Post to Ledgers 5. Prepare Unadjusted G/L Trial Balance 6. Prepare and Post Adjusting entries 7. prepare Adjusted Trial Balance 8. Prepare Financial Statements 9. Prepare Closing Entries Transactions - Answers exchanges of goods and services three most commons transaction cycles - Answers -sales and cash receipts -purchases and cash disbursements -payroll characteristics of value chain cycle - Answers 1. duality - for each event a company gives something, a related event will cause the company to receive something 2. Stock flow - one inflow and one outflow of a resources Duality of Sales and Cash Receipts Cycle - Answers Input: Good or Service Output: cash Duality of Purchases and Cash Disbursements Cycle - Answers Input:: Cash Output: Fixed assets, raw material, inventory Duality of Payroll Cycle - Answers Input: Cash Output: Labor Duality of Financing Cycle - Answers Input: Cash Output: Cash Duality Conversion Cycle - Answers Input: Direct materials, direct labor, overhead Output: Finished Goods Examples of documents - Answers time cards, customer purchase order, sales invoices methods of document preparation - Answers internal (within company) and external (by an outsider) *may be electronic or paper-based documents prepared before a transaction occurs - Answers purchase order customer purchase order documents prepared at the same time a transaction occurs - Answers receiving report bill of lading documents prepared after a transaction occurs - Answers sales invoice vendor sales invoice Sales Journal - Answers credit sales sales returns and allowance Cash Receipts Journal - Answers Cash Sales Cash Receipts from Customers Cash receipts from other sources (i.e. bank loans) Purchases Journal - Answers Purchases of Inventory Purchases of Fixed Assets Purchases of Supplies Purchase Returns and Allowances Cash Disbursements Journal - Answers Payments to Suppliers Payments for Freight Costs Payments to Other Sources (i.e. Utilities, Insurance, IRS, etc.) Payroll Journal - Answers Payments to employees General Journal - Answers Miscellaneous Transactions (i.e. adjusting entries, closing entries and other transactions The Chart of Accounts - Answers a set of general ledger accounts unique to a company it is also a model of the organization a multidimensional structure represented in the account numbers,