ACC 100 FINAL EXAM FINAL PAPER 2026
COMPLETE QUESTIONS AND SOLUTIONS
◉ Assumption: Time period Answer: Information is broken into
artificial time periods such as a month, quarter or year, so that
stakeholders can analyze and compare information to make
decisions
◉ Assumption: Full disclosure Answer: If something will affect the
decisions of external stakeholders, it must be reported
◉ Faithful connects to: Answer: Separate entity and full disclosure
◉ Relavent connects to: Answer: Separate entity, going concern, and
time period
◉ Comparable connects to: Answer: Unit of measure, going concern
◉ Verifiable connects to: Answer: Historic cost
◉ Timely connects to: Answer: Time period
, ◉ Understandable connects to: Answer: ALL assumptions
◉ The owner of a business buys a car for her daughter using the
business's money and records the car on the business's accounting
system. The car is never used for business purposes Answer:
Faithful/separate entity are being violated because the business
owner was not truthful about a purchase with company money and
what it was used for (personal)
◉ Cooper Company changed one of its accounting policies this year
because the new policy will provide better information for decision-
making. The business has recalculated the financial information for
all prior years and announced the change, including its effect on the
financial statements, to everyone who uses the statements Answer:
Understandable, comparable, relevant/ full disclosure is being
followed because old information was updated
◉ Greene Company receives a bill for $13,000 but records it as
$1,300 Answer: Faithful / historic cost are being violated because
the company did not accurately record the bill
◉ Define Assets Answer: Assets are owned, benefit the company in
the future (revenue), and happened in the past (cannot claim a
future asset you plan on getting)
COMPLETE QUESTIONS AND SOLUTIONS
◉ Assumption: Time period Answer: Information is broken into
artificial time periods such as a month, quarter or year, so that
stakeholders can analyze and compare information to make
decisions
◉ Assumption: Full disclosure Answer: If something will affect the
decisions of external stakeholders, it must be reported
◉ Faithful connects to: Answer: Separate entity and full disclosure
◉ Relavent connects to: Answer: Separate entity, going concern, and
time period
◉ Comparable connects to: Answer: Unit of measure, going concern
◉ Verifiable connects to: Answer: Historic cost
◉ Timely connects to: Answer: Time period
, ◉ Understandable connects to: Answer: ALL assumptions
◉ The owner of a business buys a car for her daughter using the
business's money and records the car on the business's accounting
system. The car is never used for business purposes Answer:
Faithful/separate entity are being violated because the business
owner was not truthful about a purchase with company money and
what it was used for (personal)
◉ Cooper Company changed one of its accounting policies this year
because the new policy will provide better information for decision-
making. The business has recalculated the financial information for
all prior years and announced the change, including its effect on the
financial statements, to everyone who uses the statements Answer:
Understandable, comparable, relevant/ full disclosure is being
followed because old information was updated
◉ Greene Company receives a bill for $13,000 but records it as
$1,300 Answer: Faithful / historic cost are being violated because
the company did not accurately record the bill
◉ Define Assets Answer: Assets are owned, benefit the company in
the future (revenue), and happened in the past (cannot claim a
future asset you plan on getting)
