ACCOUNTING 201: FINAL EXAM
QUESTIONS AND ANSWERS GRADED A+
2026
Which of the following would be included in the operating activity section of the Statement of
Cash Flows? (Select all that apply.) - ANS Cash collected from customers
Cash paid to suppliers
Cash paid to employees
Match each item below with the appropriate description using each one only once. -
ANS Income Statement
Reports a summary of all revenues minus all expenses during a period
Statement of Shareholders' Equity
Reports the changes that took place in the amount of the owners' investment during a period
Statement of Cash Flows
Reports a summary of cash collected and cash paid during a period
Balance Sheet
Reports the assets, liabilities and shareholders' equity of a company at a specific point in time
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
1
,Notes (or footnotes)
Reports additional information needed to better understand the financial statements
If a company's total assets equals $80,000 and its shareholders' equity equals $40,000, then its
liabilities must equal $______. - ANS $40000
80000-40000= 40000
Match the definition with each of the elements of the accounting equation. - ANS Assets
Economic resources that will provide future benefit
Liabilities
Creditors' claims to economic resources
Shareholders' Equity
Owners' claims to economic resources
A transaction may be recorded with an increase in a liability and a(n) ______. - ANS decrease
in shareholders' equity
What is the effect on total assets when a company buys a building in exchange for a 20-year
note payable? - ANS Total assets will increase.
The contra-asset account, ______, is used to record depreciation on equipment. -
ANS Accumulated Depreciation
Hot Diggity Dog, Inc., paid $10 of May's interest on the note payable, plus it paid off the $2,000
note payable. Show the effect of this transaction on total Assets, Liabilities, Stock and/or
Retained Earnings and the account titles. If no effect, select "$0 No Effect". - ANS Assets
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
2
, $(2,010) Cash
Liabilities
$(2,000) Note Payable
Stock
$0 No Effect
Retained Earnings
4(10) Interest Expense
Calculate the missing Operating Income amount in the following multi-step income statement:
Sales Revenue$1,500
Cost of Goods Sold ?
Gross Profit 500
Operating Expenses 100
Operating Income ?
Interest Expense 10
Net Income ? - ANS 400
1500-500= 1000 (cost of goods sold)
500-100= 400 (operating income
400-10= 390 (net income)
Purses, Inc., sold 2 purse(s) that cost $30 each to its customers for a price of $80 each. The
Gross Profit amount on the income statement will equal $______. - ANS 100
2*30= 60
2*80= 160
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
3
QUESTIONS AND ANSWERS GRADED A+
2026
Which of the following would be included in the operating activity section of the Statement of
Cash Flows? (Select all that apply.) - ANS Cash collected from customers
Cash paid to suppliers
Cash paid to employees
Match each item below with the appropriate description using each one only once. -
ANS Income Statement
Reports a summary of all revenues minus all expenses during a period
Statement of Shareholders' Equity
Reports the changes that took place in the amount of the owners' investment during a period
Statement of Cash Flows
Reports a summary of cash collected and cash paid during a period
Balance Sheet
Reports the assets, liabilities and shareholders' equity of a company at a specific point in time
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
1
,Notes (or footnotes)
Reports additional information needed to better understand the financial statements
If a company's total assets equals $80,000 and its shareholders' equity equals $40,000, then its
liabilities must equal $______. - ANS $40000
80000-40000= 40000
Match the definition with each of the elements of the accounting equation. - ANS Assets
Economic resources that will provide future benefit
Liabilities
Creditors' claims to economic resources
Shareholders' Equity
Owners' claims to economic resources
A transaction may be recorded with an increase in a liability and a(n) ______. - ANS decrease
in shareholders' equity
What is the effect on total assets when a company buys a building in exchange for a 20-year
note payable? - ANS Total assets will increase.
The contra-asset account, ______, is used to record depreciation on equipment. -
ANS Accumulated Depreciation
Hot Diggity Dog, Inc., paid $10 of May's interest on the note payable, plus it paid off the $2,000
note payable. Show the effect of this transaction on total Assets, Liabilities, Stock and/or
Retained Earnings and the account titles. If no effect, select "$0 No Effect". - ANS Assets
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
2
, $(2,010) Cash
Liabilities
$(2,000) Note Payable
Stock
$0 No Effect
Retained Earnings
4(10) Interest Expense
Calculate the missing Operating Income amount in the following multi-step income statement:
Sales Revenue$1,500
Cost of Goods Sold ?
Gross Profit 500
Operating Expenses 100
Operating Income ?
Interest Expense 10
Net Income ? - ANS 400
1500-500= 1000 (cost of goods sold)
500-100= 400 (operating income
400-10= 390 (net income)
Purses, Inc., sold 2 purse(s) that cost $30 each to its customers for a price of $80 each. The
Gross Profit amount on the income statement will equal $______. - ANS 100
2*30= 60
2*80= 160
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
3
