CBAD 201 FINAL EXAM STUDY GUIDE
2026/2027 COMPLETE QUESTIONS WITH
VERIFIED CORRECT ANSWERS ||
100% GUARANTEED PASS
<NEWEST VERSION>
1. Accounting - ANSWER ✔ System for recording financial transactions.
2. Faithful Representation - ANSWER ✔ Accurate depiction of financial
information.
3. Accounting Equation - ANSWER ✔ Assets = Liabilities + Equity.
4. Balance Sheet - ANSWER ✔ Financial statement showing assets, liabilities,
equity.
5. Order of Liquidity - ANSWER ✔ Ranking of current assets by
convertibility.
6. Business Transaction - ANSWER ✔ Economic event affecting financial
position.
7. Debits and Credits - ANSWER ✔ Debits increase assets; credits increase
liabilities.
,8. Accounting Process Order - ANSWER ✔ Identify, record, classify,
summarize, report.
9. Adjusting Journal Entry - ANSWER ✔ Entry made to update account
balances.
10.Common stock __________ stockholders' equity - ANSWER ✔ Increases
11.Retained Earnings ________ stockholders' equity - ANSWER ✔ Increases
12.Dividends _____________ stockholders' equity - ANSWER ✔ decreases
13.Revenues ______________ stockholders' equity - ANSWER ✔ increases
14.Expenses ______________ stockholders' equity - ANSWER ✔ decreases
15.Assets ______ with debit and _________ with credit - ANSWER ✔
increase, decrease
16.Liabilities ________ with debit and _________ with credit - ANSWER ✔
decrease, increase
17.Expenses _________ with debit and _______ with credit - ANSWER ✔
increase, decrease
,18.Revenues ________ with debit and _________ with credit - ANSWER ✔
decrease, increase
19.Dividends _________ with credit and __________ with debit - ANSWER ✔
decrease, increase
20.what are financial statements? - ANSWER ✔ they are the business
documents companies use to report the results of their activities to stake
holders i.e., stockholders, creditors, employee, customers vendors and
regulatory agencies
THEY USE THEM FOR DECISION MAKING
21.list of financial statements - ANSWER ✔ -balance sheet
-income statement
-statement of retained earnings
-cash flow statement
22.FINANCIAL STATEMENTS ARE BUILT ON THE "GENERAL
ACCEPTED ACCOUNTING PRINCIPLES" (GAAP)
23.definition of Accounting the Language of Business - ANSWER ✔
accounting is an information system that measures business activities,
processes data into financial statements and reports, can communicates
results to decision makers
24.Which of the following should be included in the cost of land
improvements?
, a. driveways
b. All of these
c. fencing
d. sprinkler system for the landscaping - ANSWER ✔ b. All of these
25.Land is purchased for $300,000. Back taxes paid by the purchaser were
$8500; total costs to demolish an existing building were $12,000 and the
cost to clear the land was $22,000. The cost of paving the parking lot was
$8100. The cost of land is ________ and the cost of land improvements is
________.
a. $342,100; $8500
b. $320,500; $30,100
c. $342,500; $8100
d. $350,600; $0 - ANSWER ✔ c. $342,500; $8100
26.A machine is purchased for $80,000. The transportation cost from the seller
was $3000, installation costs were $2000 and taxes on the purchase price
were $700. Testing runs of the new machine cost $3000. What is the cost of
the machine?
a. $80,000
b. $88,700
c. $85,700
d. $85,000 - ANSWER ✔ b. $88,700
27.Which of the following costs for a delivery vehicle should NOT be
capitalized?
a. repair dented fender
b. repair air conditioning system
2026/2027 COMPLETE QUESTIONS WITH
VERIFIED CORRECT ANSWERS ||
100% GUARANTEED PASS
<NEWEST VERSION>
1. Accounting - ANSWER ✔ System for recording financial transactions.
2. Faithful Representation - ANSWER ✔ Accurate depiction of financial
information.
3. Accounting Equation - ANSWER ✔ Assets = Liabilities + Equity.
4. Balance Sheet - ANSWER ✔ Financial statement showing assets, liabilities,
equity.
5. Order of Liquidity - ANSWER ✔ Ranking of current assets by
convertibility.
6. Business Transaction - ANSWER ✔ Economic event affecting financial
position.
7. Debits and Credits - ANSWER ✔ Debits increase assets; credits increase
liabilities.
,8. Accounting Process Order - ANSWER ✔ Identify, record, classify,
summarize, report.
9. Adjusting Journal Entry - ANSWER ✔ Entry made to update account
balances.
10.Common stock __________ stockholders' equity - ANSWER ✔ Increases
11.Retained Earnings ________ stockholders' equity - ANSWER ✔ Increases
12.Dividends _____________ stockholders' equity - ANSWER ✔ decreases
13.Revenues ______________ stockholders' equity - ANSWER ✔ increases
14.Expenses ______________ stockholders' equity - ANSWER ✔ decreases
15.Assets ______ with debit and _________ with credit - ANSWER ✔
increase, decrease
16.Liabilities ________ with debit and _________ with credit - ANSWER ✔
decrease, increase
17.Expenses _________ with debit and _______ with credit - ANSWER ✔
increase, decrease
,18.Revenues ________ with debit and _________ with credit - ANSWER ✔
decrease, increase
19.Dividends _________ with credit and __________ with debit - ANSWER ✔
decrease, increase
20.what are financial statements? - ANSWER ✔ they are the business
documents companies use to report the results of their activities to stake
holders i.e., stockholders, creditors, employee, customers vendors and
regulatory agencies
THEY USE THEM FOR DECISION MAKING
21.list of financial statements - ANSWER ✔ -balance sheet
-income statement
-statement of retained earnings
-cash flow statement
22.FINANCIAL STATEMENTS ARE BUILT ON THE "GENERAL
ACCEPTED ACCOUNTING PRINCIPLES" (GAAP)
23.definition of Accounting the Language of Business - ANSWER ✔
accounting is an information system that measures business activities,
processes data into financial statements and reports, can communicates
results to decision makers
24.Which of the following should be included in the cost of land
improvements?
, a. driveways
b. All of these
c. fencing
d. sprinkler system for the landscaping - ANSWER ✔ b. All of these
25.Land is purchased for $300,000. Back taxes paid by the purchaser were
$8500; total costs to demolish an existing building were $12,000 and the
cost to clear the land was $22,000. The cost of paving the parking lot was
$8100. The cost of land is ________ and the cost of land improvements is
________.
a. $342,100; $8500
b. $320,500; $30,100
c. $342,500; $8100
d. $350,600; $0 - ANSWER ✔ c. $342,500; $8100
26.A machine is purchased for $80,000. The transportation cost from the seller
was $3000, installation costs were $2000 and taxes on the purchase price
were $700. Testing runs of the new machine cost $3000. What is the cost of
the machine?
a. $80,000
b. $88,700
c. $85,700
d. $85,000 - ANSWER ✔ b. $88,700
27.Which of the following costs for a delivery vehicle should NOT be
capitalized?
a. repair dented fender
b. repair air conditioning system
