ACCT 2000 EXAM 2 LSU TERMS FINAL TEST
PAPER 2026 EXAM PREP QUESTIONS AND
ANSWERS 100% CORRECT SOLUTIONS
●● The main purpose of adjusting entries is to:
Answer: Recognize transactions and events that are not yet recorded.
●● The principle that requires expenses be reported in the same period
as the revenues that were recognized as a result of those expenses is the:
Answer: Expense recognition (Matching) principle.
●● The approach to preparing financial statements based on recording
revenues when products and services are delivered and recording
expenses when incurred is:
Answer: Accrual basis accounting.
●● Prepaid expenses, depreciation expense, accrued expenses, unearned
revenues, and accrued revenues are all examples of:
Answer: Items that require adjusting entries.
●● The contra account that includes total depreciation expense for all
prior periods for which an asset was used:
Answer: Is referred to as accumulated depreciation.
,●● Prior to recording adjusting entries, the Office Supplies account had
a $368 debit balance. A physical count of the supplies showed $110 of
unused supplies available. The required adjusting entry is:
Answer: Debit Office Supplies Expense $258 and credit Office Supplies
$258.
●● Unearned revenue is reported in the financial statements as:
Answer: A liability on the balance sheet.
●● Which of the following assets is not depreciated?
Answer: Land.
●● The difference between the cost of an asset and the accumulated
depreciation for that asset is called
Answer: Book Value.
●● A trial balance prepared after adjustments have been recorded is
called a(n):
Answer: Adjusted trial balance.
●● Financial statements are typically prepared in the following order:
Answer: Income statement, statement of retained earnings, balance
sheet.
, ●● Which of the following accounts is a permanent account?
Answer: Accounts payable.
●● Journal entries that transfer the end-of-period balances in revenue
accounts to a permanent equity account are known as:
Answer: Closing entries.
●● Closing entries are necessary at the end of each period to:
Answer: Ensure that temporary accounts begin each period with zero
balances.
●● Which of the following is the usual final step in the accounting
cycle?
Answer: Preparing a post-closing trial balance.
●● The assets section of a classified balance sheet usually includes the
subgroups:
Answer: Current assets, long-term investments, plant assets, and
intangible assets.
●● Two common subgroups for liabilities on a classified balance sheet
are:
Answer: Current liabilities and long-term liabilities.
PAPER 2026 EXAM PREP QUESTIONS AND
ANSWERS 100% CORRECT SOLUTIONS
●● The main purpose of adjusting entries is to:
Answer: Recognize transactions and events that are not yet recorded.
●● The principle that requires expenses be reported in the same period
as the revenues that were recognized as a result of those expenses is the:
Answer: Expense recognition (Matching) principle.
●● The approach to preparing financial statements based on recording
revenues when products and services are delivered and recording
expenses when incurred is:
Answer: Accrual basis accounting.
●● Prepaid expenses, depreciation expense, accrued expenses, unearned
revenues, and accrued revenues are all examples of:
Answer: Items that require adjusting entries.
●● The contra account that includes total depreciation expense for all
prior periods for which an asset was used:
Answer: Is referred to as accumulated depreciation.
,●● Prior to recording adjusting entries, the Office Supplies account had
a $368 debit balance. A physical count of the supplies showed $110 of
unused supplies available. The required adjusting entry is:
Answer: Debit Office Supplies Expense $258 and credit Office Supplies
$258.
●● Unearned revenue is reported in the financial statements as:
Answer: A liability on the balance sheet.
●● Which of the following assets is not depreciated?
Answer: Land.
●● The difference between the cost of an asset and the accumulated
depreciation for that asset is called
Answer: Book Value.
●● A trial balance prepared after adjustments have been recorded is
called a(n):
Answer: Adjusted trial balance.
●● Financial statements are typically prepared in the following order:
Answer: Income statement, statement of retained earnings, balance
sheet.
, ●● Which of the following accounts is a permanent account?
Answer: Accounts payable.
●● Journal entries that transfer the end-of-period balances in revenue
accounts to a permanent equity account are known as:
Answer: Closing entries.
●● Closing entries are necessary at the end of each period to:
Answer: Ensure that temporary accounts begin each period with zero
balances.
●● Which of the following is the usual final step in the accounting
cycle?
Answer: Preparing a post-closing trial balance.
●● The assets section of a classified balance sheet usually includes the
subgroups:
Answer: Current assets, long-term investments, plant assets, and
intangible assets.
●● Two common subgroups for liabilities on a classified balance sheet
are:
Answer: Current liabilities and long-term liabilities.
