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Accounting 1301 Final Exam Multiple Choice
Questions with Correct Answers | Updated
(100% Correct Answers)
Financial Accounting Standards Board Answer: The private
organization that oversees the creation and governance of
accounting standards in the United States.
GAAP Stand for Answer: Generally Accepted Accounting Principles.
Accounting Equation Answer: Assets = Liabilities + Equity
What is the correct order of the preparation of the financial
statements Answer: Income Statements - Statement of Revenue
earned - Balance sheet - Statement of Cash closed.
What are revenues Answer: Earnings that result from delivering
goods or services to customers. Increases equity. Example: Service
revenue and Rent revenue.
What is a ledger Answer: It's a collection of all the accounts, the
changes in those accounts, and their balances.
Which account groups have a normal credit balance? Answer: 1)
Liabilities 2) Common stock 3) Revenues4) Retained earnings.
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, 2
Which account groups have normal debit balance? Answer: Assets,
Liabilities, and Equity.
Which basis of accounting is required by GAAP Answer: The accrual
basis
What is accrued revenue Answer: It's a revenue that has been
earned, but for which the cash has not yet been collected.
What is depreciation Answer: The process by which business spread
the allocation of a plant asset's cost over its useful life.
What is the book value Answer: A depreciable asset's cost minus
accumulated depreciation
What is a permanent account Answer: An account that is not closed
at the end of the period. The asset, liability, common stock, and
retained earning accounts.
What are closing entries Answer: Are entries made at the end of an
accounting period to zero out all temporary accounts and transfer
their balances to permanent accounts. In other words, the
temporary accounts are closed or reset at the end of the year
Which types of accounts are temporary Answer: 1) Revenues 2)
Expenses3) Dividends
© 2025 All rights reserved
Accounting 1301 Final Exam Multiple Choice
Questions with Correct Answers | Updated
(100% Correct Answers)
Financial Accounting Standards Board Answer: The private
organization that oversees the creation and governance of
accounting standards in the United States.
GAAP Stand for Answer: Generally Accepted Accounting Principles.
Accounting Equation Answer: Assets = Liabilities + Equity
What is the correct order of the preparation of the financial
statements Answer: Income Statements - Statement of Revenue
earned - Balance sheet - Statement of Cash closed.
What are revenues Answer: Earnings that result from delivering
goods or services to customers. Increases equity. Example: Service
revenue and Rent revenue.
What is a ledger Answer: It's a collection of all the accounts, the
changes in those accounts, and their balances.
Which account groups have a normal credit balance? Answer: 1)
Liabilities 2) Common stock 3) Revenues4) Retained earnings.
© 2025 All rights reserved
, 2
Which account groups have normal debit balance? Answer: Assets,
Liabilities, and Equity.
Which basis of accounting is required by GAAP Answer: The accrual
basis
What is accrued revenue Answer: It's a revenue that has been
earned, but for which the cash has not yet been collected.
What is depreciation Answer: The process by which business spread
the allocation of a plant asset's cost over its useful life.
What is the book value Answer: A depreciable asset's cost minus
accumulated depreciation
What is a permanent account Answer: An account that is not closed
at the end of the period. The asset, liability, common stock, and
retained earning accounts.
What are closing entries Answer: Are entries made at the end of an
accounting period to zero out all temporary accounts and transfer
their balances to permanent accounts. In other words, the
temporary accounts are closed or reset at the end of the year
Which types of accounts are temporary Answer: 1) Revenues 2)
Expenses3) Dividends
© 2025 All rights reserved
