JHU BU.210.620 Accounting & Financial Reporting
Comprehensive Final Exam Test Bank (200
Questions)
Section 1: Questions
Question 1. In the context of Working Capital, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 2. In the context of Asset Valuation, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 3. In the context of Adjusting Entries, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 4. In the context of Adjusting Entries, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 5. In the context of Cash Flow Statement, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
, C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 6. In the context of Revenue Recognition, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 7. In the context of GAAP vs IFRS, which statement best reflects proper accounting treatment
under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 8. In the context of Liabilities and Bonds, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 9. In the context of Adjusting Entries, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 10. In the context of Adjusting Entries, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 11. In the context of Accounting Cycle, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
, B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 12. In the context of Cash Flow Statement, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 13. In the context of Accounting Cycle, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 14. In the context of Working Capital, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 15. In the context of Accounting Cycle, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 16. In the context of GAAP vs IFRS, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 17. In the context of Depreciation, which statement best reflects proper accounting treatment
under generally accepted accounting principles (GAAP)?
, A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 18. In the context of Working Capital, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 19. In the context of Revenue Recognition, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 20. In the context of Asset Valuation, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 21. In the context of Cost Accounting, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 22. In the context of Depreciation, which statement best reflects proper accounting treatment
under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Comprehensive Final Exam Test Bank (200
Questions)
Section 1: Questions
Question 1. In the context of Working Capital, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 2. In the context of Asset Valuation, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 3. In the context of Adjusting Entries, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 4. In the context of Adjusting Entries, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 5. In the context of Cash Flow Statement, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
, C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 6. In the context of Revenue Recognition, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 7. In the context of GAAP vs IFRS, which statement best reflects proper accounting treatment
under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 8. In the context of Liabilities and Bonds, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 9. In the context of Adjusting Entries, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 10. In the context of Adjusting Entries, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 11. In the context of Accounting Cycle, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
, B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 12. In the context of Cash Flow Statement, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 13. In the context of Accounting Cycle, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 14. In the context of Working Capital, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 15. In the context of Accounting Cycle, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 16. In the context of GAAP vs IFRS, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 17. In the context of Depreciation, which statement best reflects proper accounting treatment
under generally accepted accounting principles (GAAP)?
, A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 18. In the context of Working Capital, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 19. In the context of Revenue Recognition, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 20. In the context of Asset Valuation, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 21. In the context of Cost Accounting, which statement best reflects proper accounting
treatment under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
Question 22. In the context of Depreciation, which statement best reflects proper accounting treatment
under generally accepted accounting principles (GAAP)?
A. Transactions should always be recorded only when cash changes hands.
B. Financial results should be recognized only at the end of the fiscal year.
C. Revenues and expenses should be recognized in the period in which they are earned or incurred.
D. Only large transactions must be reported in financial statements.
