SUA EXAM 1 QUESTIONS AND ANSWERS 2026
Accounting Process Steps: - Answers - 1. Transactions Occur
2. Prepare Documents
3. Record in Journals
4. Post to Ledgers
5. Prepare Unadjusted Trial Balances
6. Prepare and Post Adjusting Entries
7. Prepare Adjusted Trial Balance
8. Prepare Financial Statements
9. Prepare Closing Entries
Three Most Common Transaction Cycles/Systems: - Answers - 1. Sales and Cash
Receipts
2. Purchases and Cash Disbursements
3. Payroll
Payroll Time Card - Answers - Used to determine gross pay owed to employee
Customer Purchase Order (includes quantity ordered and agreed-upon price) - Answers
- Used to determine quantities to ship to customer and amount to bill
Sales Invoice (includes total amount of sale) - Answers - Provides information to
customer and for recording sales transactions
Monthly Bank Statement - Answers - Provides information to determine whether the
company or bank has errors or omissions in recording cash receipts and disbursements
Internally Prepared Documents: - Answers - Purchase order to buy inventory; Payroll
time card
Externally Prepared Documents: - Answers - Customer purchase order; Vendor's
invoice
Documents prepared BEFORE transaction occurs: - Answers - 1. Issue order to buy
goods or services (Purchase Order)
2. Receive order for a sale of goods or services (Customer Purchase Order)
Documents prepared AT SAME TIME transaction occurs: - Answers - 1. Receive goods
or services (Receiving report)
2. Deliver goods (Bill of lading/Shipping document)
Documents prepared AFTER transaction occurs: - Answers - 1. Send bill for
goods/services sold (Sales invoice)
, 2. Receive bill for goods/services purchased (Vendor's invoice)
Special Journals - Answers - Summarize similar, repetitive types of transactions such
as, sales, cash receipts, and purchases
General Journal - Answers - Used for mostly non-repetitive transactions such as error
corrections, adjusting entries, and transactions not appropriate for any special journals
Sales Journal Transactions: - Answers - 1. Sales or other revenue
2. Sales returns and allowances (may be recorded here or in separate journal)
Cash Receipts Journal Transactions: - Answers - 1. All cash receipts
Purchases Journal Transactions: - Answers - 1. All purchases of goods and services
except payroll
2. Purchases returns and allowances (may be recorded here or in separate journal)
Cash Disbursements Journal Transactions: - Answers - 1. All cash disbursements made
by check except payroll
Payroll Journal Transactions: - Answers - 1. All payroll disbursements (usually made by
check)
Special Journal TOTALS posted to - Answers - corresponding GL Accounts
Special Journal TRANSACTION AMOUNTS posted to - Answers - corresponding
customer Subsidiary Ledger Accounts
Adjusting Entries - 6 General Categories: - Answers - 1. Prepaid expenses (adjust asset
& expense accounts)
2. Accrued expenses (adjust liability & expense accounts)
3. Accrued revenue (adjust asset & revenue accounts)
4. Unearned Revenue (adjust liability & revenue accounts)
5. Estimated (expense) items (adjust expense & contra-asset OR liability accounts)
6. Inventory Adjustment (adjust asset & expense accounts)
Adjusting Entries posted to: - Answers - End Period Worksheet and GL (after financial
statements prepared)
Closing Entries - 3 Typical: - Answers - 1. Close all revenue accounts to income
summary (Debit: all revenue accounts and Credit: income summary account)
2. Close all expense accounts to income summary (Debit: income summary and Credit:
expense accounts)
2. Close the income summary to stockholders' equity (retained earnings)
Internal Controls: - Answers - 1. Adequate documents and records
Accounting Process Steps: - Answers - 1. Transactions Occur
2. Prepare Documents
3. Record in Journals
4. Post to Ledgers
5. Prepare Unadjusted Trial Balances
6. Prepare and Post Adjusting Entries
7. Prepare Adjusted Trial Balance
8. Prepare Financial Statements
9. Prepare Closing Entries
Three Most Common Transaction Cycles/Systems: - Answers - 1. Sales and Cash
Receipts
2. Purchases and Cash Disbursements
3. Payroll
Payroll Time Card - Answers - Used to determine gross pay owed to employee
Customer Purchase Order (includes quantity ordered and agreed-upon price) - Answers
- Used to determine quantities to ship to customer and amount to bill
Sales Invoice (includes total amount of sale) - Answers - Provides information to
customer and for recording sales transactions
Monthly Bank Statement - Answers - Provides information to determine whether the
company or bank has errors or omissions in recording cash receipts and disbursements
Internally Prepared Documents: - Answers - Purchase order to buy inventory; Payroll
time card
Externally Prepared Documents: - Answers - Customer purchase order; Vendor's
invoice
Documents prepared BEFORE transaction occurs: - Answers - 1. Issue order to buy
goods or services (Purchase Order)
2. Receive order for a sale of goods or services (Customer Purchase Order)
Documents prepared AT SAME TIME transaction occurs: - Answers - 1. Receive goods
or services (Receiving report)
2. Deliver goods (Bill of lading/Shipping document)
Documents prepared AFTER transaction occurs: - Answers - 1. Send bill for
goods/services sold (Sales invoice)
, 2. Receive bill for goods/services purchased (Vendor's invoice)
Special Journals - Answers - Summarize similar, repetitive types of transactions such
as, sales, cash receipts, and purchases
General Journal - Answers - Used for mostly non-repetitive transactions such as error
corrections, adjusting entries, and transactions not appropriate for any special journals
Sales Journal Transactions: - Answers - 1. Sales or other revenue
2. Sales returns and allowances (may be recorded here or in separate journal)
Cash Receipts Journal Transactions: - Answers - 1. All cash receipts
Purchases Journal Transactions: - Answers - 1. All purchases of goods and services
except payroll
2. Purchases returns and allowances (may be recorded here or in separate journal)
Cash Disbursements Journal Transactions: - Answers - 1. All cash disbursements made
by check except payroll
Payroll Journal Transactions: - Answers - 1. All payroll disbursements (usually made by
check)
Special Journal TOTALS posted to - Answers - corresponding GL Accounts
Special Journal TRANSACTION AMOUNTS posted to - Answers - corresponding
customer Subsidiary Ledger Accounts
Adjusting Entries - 6 General Categories: - Answers - 1. Prepaid expenses (adjust asset
& expense accounts)
2. Accrued expenses (adjust liability & expense accounts)
3. Accrued revenue (adjust asset & revenue accounts)
4. Unearned Revenue (adjust liability & revenue accounts)
5. Estimated (expense) items (adjust expense & contra-asset OR liability accounts)
6. Inventory Adjustment (adjust asset & expense accounts)
Adjusting Entries posted to: - Answers - End Period Worksheet and GL (after financial
statements prepared)
Closing Entries - 3 Typical: - Answers - 1. Close all revenue accounts to income
summary (Debit: all revenue accounts and Credit: income summary account)
2. Close all expense accounts to income summary (Debit: income summary and Credit:
expense accounts)
2. Close the income summary to stockholders' equity (retained earnings)
Internal Controls: - Answers - 1. Adequate documents and records
