ACCT 3110 ENTRANCE FINAL TEST 2026
QUESTIONS WITH CORRECT ANSWERS
GRADED A+
◍ Decreases the Walt Disneys stockholder's equity.
Answer: Net lossdividends
◍ On which financial statement would the ending balance of the account
"accounts receivable" be found?.
Answer: Balance sheet
◍ When a prepaid expense was initially recorded as a debit to an asset
account, the subsequent required adjusting entry includes:.
Answer: A debit to an expense
◍ 2.0..
Answer: Total assets are $22.0million, with $12.0million being long-term
assets. Current liabilities are $5.0million and total liabilities are
$13.5million. The current ratio would be closest to:
◍ Cost of goods sold.
Answer: cogs is an EXPENSE account income statementUse cost of
inventory to calculate= Beginning inventory plus purchases equals Goods
available minus ending inventoryequals Cost of goods sold
◍ Which of the accounts would need to be closed at the end of the period?.
Answer: Supplies expense
◍ have no effect on total assets, total liabilities, or stockholders' equity..
Answer: Purchasing computer equipment for cash will
◍ $550,000 (original purchase price).
Answer: HootEnterprises buys a warehouse for $550,000to use for its East
, Coast distribution operations. On the date of thepurchase, a professional
appraisal shows a value of $640,000for the warehouse. The seller had
originally purchased the building for $510,000.Hoothas a similar warehouse
on the West Coast that has a book value of $566,000.Under the historical
costprinciple,Hootshould record the building for
◍ Related Party Transactions.
Answer: transactions with owners, management, families of owners or
management, affiliated companies, and other parties that can significantly
influence or be influenced by the companymust be disclosed
◍ All of the following events at a sandwich shop are transactions except
A. A representative from the local university contacts the manager of the
shop to get a list of catering services.
B. A customer purchases a sandwich.
C. The accountant for the sandwich shop pays the electric bill.
D. A delivery of coffee beans purchased on account from the local roaster is
received..
Answer: A.A representative from the local university contacts the manager
of the shop to get a list of catering services.
◍ What is the effect on total assets and stockholders' equity of paying the
telephone bill as soon as it is received each month?Total assetsStockholders'
equity
A. Decrease No effect
B. Decrease Decrease
C. No effect No effect
D. No effect Decrease.
Answer: B. Decrease Decrease
◍ Going Concern.
Answer: The business will continue indefinitely
◍ In a period of rising prices.
Answer: Gross profit under FIFO will be higher than under LIFO
QUESTIONS WITH CORRECT ANSWERS
GRADED A+
◍ Decreases the Walt Disneys stockholder's equity.
Answer: Net lossdividends
◍ On which financial statement would the ending balance of the account
"accounts receivable" be found?.
Answer: Balance sheet
◍ When a prepaid expense was initially recorded as a debit to an asset
account, the subsequent required adjusting entry includes:.
Answer: A debit to an expense
◍ 2.0..
Answer: Total assets are $22.0million, with $12.0million being long-term
assets. Current liabilities are $5.0million and total liabilities are
$13.5million. The current ratio would be closest to:
◍ Cost of goods sold.
Answer: cogs is an EXPENSE account income statementUse cost of
inventory to calculate= Beginning inventory plus purchases equals Goods
available minus ending inventoryequals Cost of goods sold
◍ Which of the accounts would need to be closed at the end of the period?.
Answer: Supplies expense
◍ have no effect on total assets, total liabilities, or stockholders' equity..
Answer: Purchasing computer equipment for cash will
◍ $550,000 (original purchase price).
Answer: HootEnterprises buys a warehouse for $550,000to use for its East
, Coast distribution operations. On the date of thepurchase, a professional
appraisal shows a value of $640,000for the warehouse. The seller had
originally purchased the building for $510,000.Hoothas a similar warehouse
on the West Coast that has a book value of $566,000.Under the historical
costprinciple,Hootshould record the building for
◍ Related Party Transactions.
Answer: transactions with owners, management, families of owners or
management, affiliated companies, and other parties that can significantly
influence or be influenced by the companymust be disclosed
◍ All of the following events at a sandwich shop are transactions except
A. A representative from the local university contacts the manager of the
shop to get a list of catering services.
B. A customer purchases a sandwich.
C. The accountant for the sandwich shop pays the electric bill.
D. A delivery of coffee beans purchased on account from the local roaster is
received..
Answer: A.A representative from the local university contacts the manager
of the shop to get a list of catering services.
◍ What is the effect on total assets and stockholders' equity of paying the
telephone bill as soon as it is received each month?Total assetsStockholders'
equity
A. Decrease No effect
B. Decrease Decrease
C. No effect No effect
D. No effect Decrease.
Answer: B. Decrease Decrease
◍ Going Concern.
Answer: The business will continue indefinitely
◍ In a period of rising prices.
Answer: Gross profit under FIFO will be higher than under LIFO
