ACCT 3110 ENTRANCE ACTUAL EXAM
PAPER 2026 QUESTIONS WITH ANSWERS
GRADED A+
◍ How is sales reported with the Net method.
Answer: Report the sales with the full discount
◍ What is consignment.
Answer: A party (the Principal) has ownership of goods but gives possession
of the goods to another party (the Agent for the purpose of allowing the
consignee to sell the goods.
◍ Changes in Stockholders' equity that result from the company's primary and
usual business operations are:.
Answer: Revenues and Expenses
◍ All of the following represent business transactions except:cash dividends
were paid.common stock was sold for cash.the owner paid her personal
home mortgage.a car was given to the business in exchange for common
stock..
Answer: the owner paid her personal home mortgage.
◍ prospective treatment.
Answer: A way of applying changes due to new accounting policy/method
and estimate such that the changes are applied in the current and future
periods, but the past periods are left as is.change in accounting estimate due
to new information
◍ Which type of business organization provides the least amount of protection
for bankers and other creditors of the company?
A. Proprietorship
B. Corporation
, C. Partnership
D. Both a and c.
Answer: B.Corporation
◍ Which of the following is most likely true?.
Answer: A gain is recognized when a long-term fixed asset is sold and the
proceeds received are more than its carrying value
◍ A trial balance is the same as a balance sheet..
Answer: Which statement is false?
◍ Which of the following terms describe probably future economic benefits
obtained or controlled by a particular company as a result of past
transactions or events?.
Answer: Asset
◍ Generally Accepted Accounting Principles(GAAP) are established by:.
Answer: The financial Accounting Standards board
◍ increase stockholders' equity..
Answer: An investment of cash by stockholders into the business will
◍ Thorpe Corporation purchases a new delivery truck and signs a note payable
at the truck dealership for the total cost. The impact of this transaction on
Thorpe Corporation
A. increases assets and increases liabilities.
B. increases assets and increases stockholders' equity.
C. decreases assets and increases liabilities.
D. increases assets and decreases stockholders' equity..
Answer: A.increases assets and increases liabilities.
◍ faithful relevance.
Answer: Information should faithfully reflect the economic phenomena it
purports to represent.
◍ Which of the following is true about every adjusting entry?.
Answer: It affects a balance sheet account and an income statement account.
PAPER 2026 QUESTIONS WITH ANSWERS
GRADED A+
◍ How is sales reported with the Net method.
Answer: Report the sales with the full discount
◍ What is consignment.
Answer: A party (the Principal) has ownership of goods but gives possession
of the goods to another party (the Agent for the purpose of allowing the
consignee to sell the goods.
◍ Changes in Stockholders' equity that result from the company's primary and
usual business operations are:.
Answer: Revenues and Expenses
◍ All of the following represent business transactions except:cash dividends
were paid.common stock was sold for cash.the owner paid her personal
home mortgage.a car was given to the business in exchange for common
stock..
Answer: the owner paid her personal home mortgage.
◍ prospective treatment.
Answer: A way of applying changes due to new accounting policy/method
and estimate such that the changes are applied in the current and future
periods, but the past periods are left as is.change in accounting estimate due
to new information
◍ Which type of business organization provides the least amount of protection
for bankers and other creditors of the company?
A. Proprietorship
B. Corporation
, C. Partnership
D. Both a and c.
Answer: B.Corporation
◍ Which of the following is most likely true?.
Answer: A gain is recognized when a long-term fixed asset is sold and the
proceeds received are more than its carrying value
◍ A trial balance is the same as a balance sheet..
Answer: Which statement is false?
◍ Which of the following terms describe probably future economic benefits
obtained or controlled by a particular company as a result of past
transactions or events?.
Answer: Asset
◍ Generally Accepted Accounting Principles(GAAP) are established by:.
Answer: The financial Accounting Standards board
◍ increase stockholders' equity..
Answer: An investment of cash by stockholders into the business will
◍ Thorpe Corporation purchases a new delivery truck and signs a note payable
at the truck dealership for the total cost. The impact of this transaction on
Thorpe Corporation
A. increases assets and increases liabilities.
B. increases assets and increases stockholders' equity.
C. decreases assets and increases liabilities.
D. increases assets and decreases stockholders' equity..
Answer: A.increases assets and increases liabilities.
◍ faithful relevance.
Answer: Information should faithfully reflect the economic phenomena it
purports to represent.
◍ Which of the following is true about every adjusting entry?.
Answer: It affects a balance sheet account and an income statement account.
