ACCT 3122 EXAM (SUA) QUESTIONS
AND ANSWERS. VERIFIED 2025/2026.
To create value - ANS what is the purpose of a company?
a company transforms resources into goods and services that it sells to customers - ANS how
does a company create value?
The accounting system is used to - ANS -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 - ANS 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
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,7. prepare Adjusted Trial Balance
8. Prepare Financial Statements
9. Prepare Closing Entries
Transactions - ANS exchanges of goods and services
three most commons transaction cycles - ANS -sales and cash receipts
-purchases and cash disbursements
-payroll
characteristics of value chain cycle - ANS 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 - ANS Input: Good or Service
Output: cash
Duality of Purchases and Cash Disbursements Cycle - ANS Input:: Cash
Output: Fixed assets, raw material, inventory
Duality of Payroll Cycle - ANS Input: Cash
Output: Labor
Duality of Financing Cycle - ANS Input: Cash
Output: Cash
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Duality Conversion Cycle - ANS Input: Direct materials, direct labor, overhead
Output: Finished Goods
Examples of documents - ANS time cards, customer purchase order, sales invoices
methods of document preparation - ANS internal (within company) and external (by an
outsider)
*may be electronic or paper-based
documents prepared before a transaction occurs - ANS purchase order
customer purchase order
documents prepared at the same time a transaction occurs - ANS receiving report
bill of lading
documents prepared after a transaction occurs - ANS sales invoice
vendor sales invoice
Sales Journal - ANS credit sales
sales returns and allowance
Cash Receipts Journal - ANS Cash Sales
Cash Receipts from Customers
Cash receipts from other sources (i.e. bank loans)
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
AND ANSWERS. VERIFIED 2025/2026.
To create value - ANS what is the purpose of a company?
a company transforms resources into goods and services that it sells to customers - ANS how
does a company create value?
The accounting system is used to - ANS -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 - ANS 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
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,7. prepare Adjusted Trial Balance
8. Prepare Financial Statements
9. Prepare Closing Entries
Transactions - ANS exchanges of goods and services
three most commons transaction cycles - ANS -sales and cash receipts
-purchases and cash disbursements
-payroll
characteristics of value chain cycle - ANS 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 - ANS Input: Good or Service
Output: cash
Duality of Purchases and Cash Disbursements Cycle - ANS Input:: Cash
Output: Fixed assets, raw material, inventory
Duality of Payroll Cycle - ANS Input: Cash
Output: Labor
Duality of Financing Cycle - ANS Input: Cash
Output: Cash
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Duality Conversion Cycle - ANS Input: Direct materials, direct labor, overhead
Output: Finished Goods
Examples of documents - ANS time cards, customer purchase order, sales invoices
methods of document preparation - ANS internal (within company) and external (by an
outsider)
*may be electronic or paper-based
documents prepared before a transaction occurs - ANS purchase order
customer purchase order
documents prepared at the same time a transaction occurs - ANS receiving report
bill of lading
documents prepared after a transaction occurs - ANS sales invoice
vendor sales invoice
Sales Journal - ANS credit sales
sales returns and allowance
Cash Receipts Journal - ANS Cash Sales
Cash Receipts from Customers
Cash receipts from other sources (i.e. bank loans)
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
