ACCT 3110 ENTRANCE PRACTICE
EXAMINATION 2026 QUESTIONS WITH
ANSWERS GRADED A+
◍ To be useful, information must have which of the following fundamental
qualitative characteristics?
A. Relevance and faithful representation
B. Expediency and relevance
C. Timeliness and affordability
D. Faithful representation and diversity.
Answer: A.Relevance and faithful representation
◍ What are the 5 steps of revenue recognition ?.
Answer: 1 Identifying the Contract with Customers 2. Identifying Separate
Performance Obligations 3. Determining the Transaction Price4. Allocating
the transaction price to separate performance obligations 5. Recognizing
Revenue When (or as) Each Performance Obligation is Satisfied
◍ update the Retained Earnings account..
Answer: A major purpose of preparing closing entries is to
◍ Who is IASB and what is their role?.
Answer: International Accounting Standards Committee, Sets accounting
standards for IFRS
◍ All of the following are types of adjusting entries except:.
Answer: Transactions
◍ Receiving cash from a customer on account will.
Answer: have no effect on total assets
◍ What item flows from the statement of retained earnings to the balance
, sheet?
A. Cash
B. Retained earnings
C. Net income
D. Dividends.
Answer: B.Retained earnings
◍ How is sales reported with the gross method.
Answer: Sale is recorded at full amount than minus discounts
◍ Four basic assumptions that underlie GAAP.
Answer: 1. The economic entity assumption2. The going concern
assumption3. The periodicity assumption4. The monetary unit assumption
◍ The adjusting entry to record an accrued expense increases.
Answer: both an expense and a liability
◍ Slide errors.
Answer: $400 instead of $40 for example, can be uncovered by dividing the
trial balance difference by 9, then searching through the journal and ledger
for this amount
◍ International Financial Reporting Standards (IFRS).
Answer: A set of global accounting guidelines, formulated by the
International Accounting Standards Board (IASB).
◍ Purchasing a building for $ 105,000 by paying cash of $ 30,000 and signing
a note payable for $ 75,000 will
A. decrease total assets and increase total liabilities by $ 30,000.
B. increase both total assets and total liabilities by $ 75,000.
C. increase both total assets and total liabilities by $ 105,000.
D. decrease both total assets and total liabilities by $ 30,000..
Answer: B.increase both total assets and total liabilities by $ 75,000.
◍ Which of the following is a true statement about International Financial
Reporting Standards?
A. They are converging gradually with
EXAMINATION 2026 QUESTIONS WITH
ANSWERS GRADED A+
◍ To be useful, information must have which of the following fundamental
qualitative characteristics?
A. Relevance and faithful representation
B. Expediency and relevance
C. Timeliness and affordability
D. Faithful representation and diversity.
Answer: A.Relevance and faithful representation
◍ What are the 5 steps of revenue recognition ?.
Answer: 1 Identifying the Contract with Customers 2. Identifying Separate
Performance Obligations 3. Determining the Transaction Price4. Allocating
the transaction price to separate performance obligations 5. Recognizing
Revenue When (or as) Each Performance Obligation is Satisfied
◍ update the Retained Earnings account..
Answer: A major purpose of preparing closing entries is to
◍ Who is IASB and what is their role?.
Answer: International Accounting Standards Committee, Sets accounting
standards for IFRS
◍ All of the following are types of adjusting entries except:.
Answer: Transactions
◍ Receiving cash from a customer on account will.
Answer: have no effect on total assets
◍ What item flows from the statement of retained earnings to the balance
, sheet?
A. Cash
B. Retained earnings
C. Net income
D. Dividends.
Answer: B.Retained earnings
◍ How is sales reported with the gross method.
Answer: Sale is recorded at full amount than minus discounts
◍ Four basic assumptions that underlie GAAP.
Answer: 1. The economic entity assumption2. The going concern
assumption3. The periodicity assumption4. The monetary unit assumption
◍ The adjusting entry to record an accrued expense increases.
Answer: both an expense and a liability
◍ Slide errors.
Answer: $400 instead of $40 for example, can be uncovered by dividing the
trial balance difference by 9, then searching through the journal and ledger
for this amount
◍ International Financial Reporting Standards (IFRS).
Answer: A set of global accounting guidelines, formulated by the
International Accounting Standards Board (IASB).
◍ Purchasing a building for $ 105,000 by paying cash of $ 30,000 and signing
a note payable for $ 75,000 will
A. decrease total assets and increase total liabilities by $ 30,000.
B. increase both total assets and total liabilities by $ 75,000.
C. increase both total assets and total liabilities by $ 105,000.
D. decrease both total assets and total liabilities by $ 30,000..
Answer: B.increase both total assets and total liabilities by $ 75,000.
◍ Which of the following is a true statement about International Financial
Reporting Standards?
A. They are converging gradually with
