ACCT 4346 ACTUAL EXAM PAPER 2026
QUESTIONS WITH SOLUTIONS GRADED A+
◉Fayette Company includes in its accounting records only
transaction data that can be expressed in terms of money.. Answer:
correct, monetary unit assumption
◉Omar Shariff, president of Omar's Oasis, records his personal
living costs as expenses of Oasis.. Answer: incorrect, economic entity
assumption
◉Milo has the following year-end account balances: Accounts
Receivable, $5,000; Supplies, $12,000; Equipment, $18,000;
Accounts Payable, $17,000; Stockholders' Equity, $43,000. Given the
account balances listed, the balance in the Cash account should be.
Answer: 25,000
◉The ending retained earnings amount is shown on the. Answer:
balance sheet and the retained earnings statement.
◉The historical cost principle states that. Answer: assets should be
recorded at their cost.
, ◉Liabilities of a company would not include. Answer: accounts
receivable
◉The investment of cash by the stockholder. Answer: Increases
stockholders' equity.
◉Revenues and expenses are reported on the. Answer: income
statement
◉All of the financial statements are for a period of time except the.
Answer: balance sheet
◉The left side of an account. Answer: Debit
◉The Dividends account decreases stockholders' equity and is an
income statement account like expenses.. Answer: false
◉Which of the following statements is false?. Answer: Revenues are
increased by debits.
◉The first step in the recording process is to. Answer: analyze each
transaction for its effect on the accounts.
QUESTIONS WITH SOLUTIONS GRADED A+
◉Fayette Company includes in its accounting records only
transaction data that can be expressed in terms of money.. Answer:
correct, monetary unit assumption
◉Omar Shariff, president of Omar's Oasis, records his personal
living costs as expenses of Oasis.. Answer: incorrect, economic entity
assumption
◉Milo has the following year-end account balances: Accounts
Receivable, $5,000; Supplies, $12,000; Equipment, $18,000;
Accounts Payable, $17,000; Stockholders' Equity, $43,000. Given the
account balances listed, the balance in the Cash account should be.
Answer: 25,000
◉The ending retained earnings amount is shown on the. Answer:
balance sheet and the retained earnings statement.
◉The historical cost principle states that. Answer: assets should be
recorded at their cost.
, ◉Liabilities of a company would not include. Answer: accounts
receivable
◉The investment of cash by the stockholder. Answer: Increases
stockholders' equity.
◉Revenues and expenses are reported on the. Answer: income
statement
◉All of the financial statements are for a period of time except the.
Answer: balance sheet
◉The left side of an account. Answer: Debit
◉The Dividends account decreases stockholders' equity and is an
income statement account like expenses.. Answer: false
◉Which of the following statements is false?. Answer: Revenues are
increased by debits.
◉The first step in the recording process is to. Answer: analyze each
transaction for its effect on the accounts.
