ACCT 4346 COMPREHENSIVE STUDY
PAPER 2026 QUESTIONS WITH ANSWERS
GRADED A+
◉Debits. Answer: increase assets and decrease liabilities
◉Credits. Answer: decrease assets and increase liabilities
◉If a company records a transaction with wrong amounts but
properly debits and credits affected accounts, or posts correct
numbers to wrong accounts. Answer: the accounting equation will
be satisfied but the financial statements will be incorrect
◉Before posting a payment of $5,000, the Accounts Payable of
Senator Company has a normal balance of $16,000. The balance
after posting this transaction was. Answer: 11,000
◉A credit to a liability account. Answer: indicates an increase in the
account.
, ◉On June 1, Diane Leno purchases a copier machine for her
business by paying half of the cost in cash and the balance is on
account. When journalizing this transaction, she will. Answer:
prepare a compound entry
◉A credit to a revenue account. Answer: indicates an increase in
revenues earned.
◉A trial balance will not balance if. Answer: a $100 cash drawing by
the owner is debited to Dividends for $1,000 and credited to Cash
for $100
◉The time period assumption states that. Answer: The economic life
of a business can be divided into artificial time periods.
◉under cash-basis accounting, companies record revenue only
when. Answer: cash is received.
◉The revenue recognition principle dictates that revenue should be
recognized in the accounting records. Answer: when service was
performed
◉If a resource has been consumed but a bill has not been received at
the end of the accounting period,. Answer: an adjusting entry should
be made recognizing the expense.
PAPER 2026 QUESTIONS WITH ANSWERS
GRADED A+
◉Debits. Answer: increase assets and decrease liabilities
◉Credits. Answer: decrease assets and increase liabilities
◉If a company records a transaction with wrong amounts but
properly debits and credits affected accounts, or posts correct
numbers to wrong accounts. Answer: the accounting equation will
be satisfied but the financial statements will be incorrect
◉Before posting a payment of $5,000, the Accounts Payable of
Senator Company has a normal balance of $16,000. The balance
after posting this transaction was. Answer: 11,000
◉A credit to a liability account. Answer: indicates an increase in the
account.
, ◉On June 1, Diane Leno purchases a copier machine for her
business by paying half of the cost in cash and the balance is on
account. When journalizing this transaction, she will. Answer:
prepare a compound entry
◉A credit to a revenue account. Answer: indicates an increase in
revenues earned.
◉A trial balance will not balance if. Answer: a $100 cash drawing by
the owner is debited to Dividends for $1,000 and credited to Cash
for $100
◉The time period assumption states that. Answer: The economic life
of a business can be divided into artificial time periods.
◉under cash-basis accounting, companies record revenue only
when. Answer: cash is received.
◉The revenue recognition principle dictates that revenue should be
recognized in the accounting records. Answer: when service was
performed
◉If a resource has been consumed but a bill has not been received at
the end of the accounting period,. Answer: an adjusting entry should
be made recognizing the expense.
