MGA 201 FINAL EXAM {LATEST 2026 -2027
update} QUESTIONS AND ANSWERS 100%
CORRECT
Net Profit Margin - correct answer NPM = Net Income / Revenue
Adjustments for Income Statement - correct answer -Revenues are recorded when
earned
-Expenses are recorded in the same period as the revenues to which they relate
Adjustments for Balance Sheet - correct answer -Assets are reported at amounts
representing the economic benefits that remain at the end of the period
-Liabilities are reported at amounts owed at the end of the period
,Adjustment Analysis - correct answer -Determine the necessary adjustments to make
to the accounting records
-Without adjustments the financial statements present and incomplete and misleading
picture of the company's financial performance.
The Balance Sheet - correct answer Reports at a point in time: 1. What the business
owns(assets)
2. What it owes to creditors(liabilities)
3. What is left over for the owners of the company's stock(stockholders equity)
Accrual Adj's for Revenues - correct answer -Revenues earned during the period but
were not yet recorded
-Cash will be received in the future(creating an asset)
,-Adjusting Entries: Accrued Receivables
-Debit Assets : credit Revenues
Depreciation - correct answer The process of allocating (distributing) the cost of
buildings, vehicles, and equipment to the accounting periods in which they are used.
Contra-Account - correct answer An account that is an offset to, or reduction of
another account
Adjusting Journal Entry Hints: - correct answer -Adjusting journal entries never
involve cash
-Adjusting entries always include one balance sheet and one income statement
account
The Accounting Cycle - correct answer 1. Analyze transactions (daily)->
, 2. Prepare journal entries and post to accounts(daily)->
3. Prepare unadj. Trial balance(monthly)->
4. Prepare adj. Journal entries and post to accounts(monthly)->
5. Prepare adj. Trial balance(monthly)->
6. Prepare financial statements(monthly)->
7. Prepare closing journal entries and post to accounts "closing the books"(yearly)->
8. Prepare post closing trial balance(yearly)
Closing the Books - correct answer -Balance sheet account balances carry forward
from period to period, but income statement and dividend account balances do not
-Balance sheet accounts-> permanent accounts
-Income statement accounts and dividends account-> temporary accounts
For Closing Entries we need to: - correct answer 1. Transfer net income/loss and
dividends(if any) to retained earnings
update} QUESTIONS AND ANSWERS 100%
CORRECT
Net Profit Margin - correct answer NPM = Net Income / Revenue
Adjustments for Income Statement - correct answer -Revenues are recorded when
earned
-Expenses are recorded in the same period as the revenues to which they relate
Adjustments for Balance Sheet - correct answer -Assets are reported at amounts
representing the economic benefits that remain at the end of the period
-Liabilities are reported at amounts owed at the end of the period
,Adjustment Analysis - correct answer -Determine the necessary adjustments to make
to the accounting records
-Without adjustments the financial statements present and incomplete and misleading
picture of the company's financial performance.
The Balance Sheet - correct answer Reports at a point in time: 1. What the business
owns(assets)
2. What it owes to creditors(liabilities)
3. What is left over for the owners of the company's stock(stockholders equity)
Accrual Adj's for Revenues - correct answer -Revenues earned during the period but
were not yet recorded
-Cash will be received in the future(creating an asset)
,-Adjusting Entries: Accrued Receivables
-Debit Assets : credit Revenues
Depreciation - correct answer The process of allocating (distributing) the cost of
buildings, vehicles, and equipment to the accounting periods in which they are used.
Contra-Account - correct answer An account that is an offset to, or reduction of
another account
Adjusting Journal Entry Hints: - correct answer -Adjusting journal entries never
involve cash
-Adjusting entries always include one balance sheet and one income statement
account
The Accounting Cycle - correct answer 1. Analyze transactions (daily)->
, 2. Prepare journal entries and post to accounts(daily)->
3. Prepare unadj. Trial balance(monthly)->
4. Prepare adj. Journal entries and post to accounts(monthly)->
5. Prepare adj. Trial balance(monthly)->
6. Prepare financial statements(monthly)->
7. Prepare closing journal entries and post to accounts "closing the books"(yearly)->
8. Prepare post closing trial balance(yearly)
Closing the Books - correct answer -Balance sheet account balances carry forward
from period to period, but income statement and dividend account balances do not
-Balance sheet accounts-> permanent accounts
-Income statement accounts and dividends account-> temporary accounts
For Closing Entries we need to: - correct answer 1. Transfer net income/loss and
dividends(if any) to retained earnings
