FINANCIAL ACCOUNTING
COMPREHENSIVE ASSESSMENT 2026
COMPLETE QUESTIONS AND ANSWERS
◉ Cash Basis Accounting
Answer: recording revenues when cash is received and expenses
when cash is paid
◉ Bank Reconciliation
Answer: process of using both the bank statement and the cash
accounts of a business to determine the appropriate amount of cash
in a bank account, after taking into consideration delays or errors in
processing cash transactions
◉ Perpetual Inventory System
Answer: a system in which a delayed inventory record is maintained
by recording each purchase and sale of inventory during the
accounting period
◉ Discount
Answer: for bonds, occurs when the issue price is less than the face
value
, ◉ Net Sales
Answer: total sales revenue minus sales returns and allowances and
sales discounts
◉ Inventory
Answer: tangible property held for sale in the normal course of
business or used in producing goods or services for sale
◉ Cost of Goods Sold
Answer: expresses the relationship between inventory on hand,
purchases, and sold
◉ LIFO
Answer: last in first out method; assumes the most recently
purchased units (the last in) are sold first
◉ FIFO
Answer: first in first out method; assumes that the first goods
purchased (the first in) are the first goods sold
◉ Weighted Average
Answer: uses the weighted average unit cost of goods available for
sale for calculations of both the cost of goods sold and ending
inventory
COMPREHENSIVE ASSESSMENT 2026
COMPLETE QUESTIONS AND ANSWERS
◉ Cash Basis Accounting
Answer: recording revenues when cash is received and expenses
when cash is paid
◉ Bank Reconciliation
Answer: process of using both the bank statement and the cash
accounts of a business to determine the appropriate amount of cash
in a bank account, after taking into consideration delays or errors in
processing cash transactions
◉ Perpetual Inventory System
Answer: a system in which a delayed inventory record is maintained
by recording each purchase and sale of inventory during the
accounting period
◉ Discount
Answer: for bonds, occurs when the issue price is less than the face
value
, ◉ Net Sales
Answer: total sales revenue minus sales returns and allowances and
sales discounts
◉ Inventory
Answer: tangible property held for sale in the normal course of
business or used in producing goods or services for sale
◉ Cost of Goods Sold
Answer: expresses the relationship between inventory on hand,
purchases, and sold
◉ LIFO
Answer: last in first out method; assumes the most recently
purchased units (the last in) are sold first
◉ FIFO
Answer: first in first out method; assumes that the first goods
purchased (the first in) are the first goods sold
◉ Weighted Average
Answer: uses the weighted average unit cost of goods available for
sale for calculations of both the cost of goods sold and ending
inventory
