ACCOUNTING 1301 FINAL EXAM
QUESTIONS AND ANSWERS 100% PASS
2026/2027
Financial Accounting Standards Board - ANS The private organization that oversees the
creation and governance of accounting standards in the United States.
GAAP Stand for - ANS Generally Accepted Accounting Principles.
Accounting Equation - ANS Assets = Liabilities + Equity
What is the correct order of the preparation of the financial statements - ANS Income
Statements - Statement of Revenue earned - Balance sheet - Statement of Cash closed.
What are revenues - ANS Earnings that result from delivering goods or services to customers.
Increases equity. Example: Service revenue and Rent revenue.
What is a ledger - ANS It's a collection of all the accounts, the changes in those accounts, and
their balances.
Which account groups have a normal credit balance? - ANS 1) Liabilities 2) Common stock 3)
Revenues4) Retained earnings.
@2026 ALLRIGHTS RESERVED 1
, Which account groups have normal debit balance? - ANS Assets, Liabilities, and Equity.
Which basis of accounting is required by GAAP - ANS The accrual basis
What is accrued revenue - ANS It's a revenue that has been earned, but for which the cash
has not yet been collected.
What is depreciation - ANS The process by which business spread the allocation of a plant
asset's cost over its useful life.
What is the book value - ANS A depreciable asset's cost minus accumulated depreciation
What is a permanent account - ANS An account that is not closed at the end of the period.
The asset, liability, common stock, and retained earning accounts.
What are closing entries - ANS Are entries made at the end of an accounting period to zero
out all temporary accounts and transfer their balances to permanent accounts. In other words,
the temporary accounts are closed or reset at the end of the year
Which types of accounts are temporary - ANS 1) Revenues 2) Expenses3) Dividends
What is post-closing trial balance - ANS Entering that transfer the revenues, expenses, and
dividends balances to retained earnings.
The two main categories of merchandising systems - ANS Perpetual and Periodic
@2026 ALLRIGHTS RESERVED 2
QUESTIONS AND ANSWERS 100% PASS
2026/2027
Financial Accounting Standards Board - ANS The private organization that oversees the
creation and governance of accounting standards in the United States.
GAAP Stand for - ANS Generally Accepted Accounting Principles.
Accounting Equation - ANS Assets = Liabilities + Equity
What is the correct order of the preparation of the financial statements - ANS Income
Statements - Statement of Revenue earned - Balance sheet - Statement of Cash closed.
What are revenues - ANS Earnings that result from delivering goods or services to customers.
Increases equity. Example: Service revenue and Rent revenue.
What is a ledger - ANS It's a collection of all the accounts, the changes in those accounts, and
their balances.
Which account groups have a normal credit balance? - ANS 1) Liabilities 2) Common stock 3)
Revenues4) Retained earnings.
@2026 ALLRIGHTS RESERVED 1
, Which account groups have normal debit balance? - ANS Assets, Liabilities, and Equity.
Which basis of accounting is required by GAAP - ANS The accrual basis
What is accrued revenue - ANS It's a revenue that has been earned, but for which the cash
has not yet been collected.
What is depreciation - ANS The process by which business spread the allocation of a plant
asset's cost over its useful life.
What is the book value - ANS A depreciable asset's cost minus accumulated depreciation
What is a permanent account - ANS An account that is not closed at the end of the period.
The asset, liability, common stock, and retained earning accounts.
What are closing entries - ANS Are entries made at the end of an accounting period to zero
out all temporary accounts and transfer their balances to permanent accounts. In other words,
the temporary accounts are closed or reset at the end of the year
Which types of accounts are temporary - ANS 1) Revenues 2) Expenses3) Dividends
What is post-closing trial balance - ANS Entering that transfer the revenues, expenses, and
dividends balances to retained earnings.
The two main categories of merchandising systems - ANS Perpetual and Periodic
@2026 ALLRIGHTS RESERVED 2
