ACCT 3110 ENTRANCE COMPREHENSIVE
STUDY GUIDE 2026 FULL QUESTIONS AND
SOLUTIONS GRADED A+
◍ The adjusting entry to record accrued revenue.
Answer: increases both an asset and a revenue.
◍ Preferred cash dividends.
Answer: number of shares times the par value times percent given = amount
that MUST go to preferred shareholders first
◍ In the statement of cash flows, investing activities.
Answer: Acquisition (purchase) of Long-term assetsSUBTRACT the cash
paidProceeds from sale of Long-term assetsADD the total cash
proceedsLoans to other companies (notes receivable)SUBTRACT
INCREASES to notes receivable (we gave them cash)ADD DECREASES
to notes receivable (they paid us back)
◍ The accounting equation can be expressed as:.
Answer: Assets - Liabilities = Owner's Equity
◍ Venice Legal Association performs legal services for Spence Construction
for $4,000 on account with credit terms of 4/10, n/30. If Spence pays the
invoice within the discount period, Venice will record a debit to Cash in the
amount of.
Answer: $3,840(4k*4%=160)(4k-160=3840)
◍ Retained Earnings Formula.
Answer: Beginning Retained Earnings + Net Income - Dividends = Ending
Retained Earnings
◍ When does the cost of inventory become an expense?.
, Answer: When inventory is delivered to a customer
◍ Journal, ledger, trial balance, financial statements.
Answer: Which is the correct sequence for recording transactions and
preparing financial statements?
◍ Expense Recognition Principle.
Answer: match expenses with revenues in the period where it benefits the
company (helps it produce revenue)aka matching principle
◍ Post closing trial balance.
Answer: List of accounts and their balances after recording closing entries
◍ Nicholas is a software engineer and is starting a consulting practice. What
form of business organization limits his liability to the amount he has
invested in the business?
A. Corporation
B. Proprietorship
C. Partnership
D. None of the above..
Answer: A.Corporation
◍ Entry for interest paid to us.
Answer: Cash Dr xxxInterest receivable Cr xxxIntereat Revenue Cr xxx
◍ Going from lifo to fifo Change in principal.
Answer: Retrospective
◍ The financial statement that reports revenues and expenses is called the
A. statement of cash flows.
B. balance sheet.
C. statement of retained earnings.
D. income statement..
Answer: D.income statement.
◍ Blake Company completed a consulting job and billed the customer $5,000.
The impact on Blake Company from this transaction
STUDY GUIDE 2026 FULL QUESTIONS AND
SOLUTIONS GRADED A+
◍ The adjusting entry to record accrued revenue.
Answer: increases both an asset and a revenue.
◍ Preferred cash dividends.
Answer: number of shares times the par value times percent given = amount
that MUST go to preferred shareholders first
◍ In the statement of cash flows, investing activities.
Answer: Acquisition (purchase) of Long-term assetsSUBTRACT the cash
paidProceeds from sale of Long-term assetsADD the total cash
proceedsLoans to other companies (notes receivable)SUBTRACT
INCREASES to notes receivable (we gave them cash)ADD DECREASES
to notes receivable (they paid us back)
◍ The accounting equation can be expressed as:.
Answer: Assets - Liabilities = Owner's Equity
◍ Venice Legal Association performs legal services for Spence Construction
for $4,000 on account with credit terms of 4/10, n/30. If Spence pays the
invoice within the discount period, Venice will record a debit to Cash in the
amount of.
Answer: $3,840(4k*4%=160)(4k-160=3840)
◍ Retained Earnings Formula.
Answer: Beginning Retained Earnings + Net Income - Dividends = Ending
Retained Earnings
◍ When does the cost of inventory become an expense?.
, Answer: When inventory is delivered to a customer
◍ Journal, ledger, trial balance, financial statements.
Answer: Which is the correct sequence for recording transactions and
preparing financial statements?
◍ Expense Recognition Principle.
Answer: match expenses with revenues in the period where it benefits the
company (helps it produce revenue)aka matching principle
◍ Post closing trial balance.
Answer: List of accounts and their balances after recording closing entries
◍ Nicholas is a software engineer and is starting a consulting practice. What
form of business organization limits his liability to the amount he has
invested in the business?
A. Corporation
B. Proprietorship
C. Partnership
D. None of the above..
Answer: A.Corporation
◍ Entry for interest paid to us.
Answer: Cash Dr xxxInterest receivable Cr xxxIntereat Revenue Cr xxx
◍ Going from lifo to fifo Change in principal.
Answer: Retrospective
◍ The financial statement that reports revenues and expenses is called the
A. statement of cash flows.
B. balance sheet.
C. statement of retained earnings.
D. income statement..
Answer: D.income statement.
◍ Blake Company completed a consulting job and billed the customer $5,000.
The impact on Blake Company from this transaction
