ACCT 3122 EXAM (SUA) UPDATED
Actual Exam Questions and CORRECT
Answers
how does a company create value? - CORRECT ANSWER- ✔✔a company transforms
resources into goods and services that it sells to customers
what is the purpose of a company? - CORRECT ANSWER- ✔✔to create value
The accounting system is used to - CORRECT ANSWER- ✔✔-measure, record, categorize,
and summarize the daily operating activities
-provide accountability of all levels of management for their responsibilities
-protect business assets from unauthorized use or consumption
9 Step Accounting Cycle - CORRECT ANSWER- ✔✔1. Transactions Occur
2. Prepare Documents
3. Record in Journals
4. Post to Ledgers
5. Prepare Unadjusted G/L Trial Balance
6. Prepare and Post Adjusting entries
7. prepare Adjusted Trial Balance
8. Prepare Financial Statements
9. Prepare Closing Entries
Transactions - CORRECT ANSWER- ✔✔exchanges of goods and services
three most commons transaction cycles - CORRECT ANSWER- ✔✔-sales and cash receipts
-purchases and cash disbursements
,-payroll
characteristics of value chain cycle - CORRECT ANSWER- ✔✔1. duality - for each event a
company gives something, a related event will cause the company to receive something
2. Stock flow - one inflow and one outflow of a resources
Duality of Sales and Cash Receipts Cycle - CORRECT ANSWER- ✔✔Input: Good or
Service
Output: cash
Duality of Purchases and Cash Disbursements Cycle - CORRECT ANSWER- ✔✔Input::
Cash
Output: Fixed assets, raw material, inventory
Duality of Payroll Cycle - CORRECT ANSWER- ✔✔Input: Cash
Output: Labor
Duality of Financing Cycle - CORRECT ANSWER- ✔✔Input: Cash
Output: Cash
Duality Conversion Cycle - CORRECT ANSWER- ✔✔Input: Direct materials, direct labor,
overhead
Output: Finished Goods
Examples of documents - CORRECT ANSWER- ✔✔time cards, customer purchase order,
sales invoices
methods of document preparation - CORRECT ANSWER- ✔✔internal (within company)
and external (by an outsider)
*may be electronic or paper-based
, documents prepared before a transaction occurs - CORRECT ANSWER- ✔✔purchase order
customer purchase order
documents prepared at the same time a transaction occurs - CORRECT ANSWER-
✔✔receiving report
bill of lading
documents prepared after a transaction occurs - CORRECT ANSWER- ✔✔sales invoice
vendor sales invoice
Sales Journal - CORRECT ANSWER- ✔✔credit sales
sales returns and allowance
Cash Receipts Journal - CORRECT ANSWER- ✔✔Cash Sales
Cash Receipts from Customers
Cash receipts from other sources (i.e. bank loans)
Purchases Journal - CORRECT ANSWER- ✔✔Purchases of Inventory
Purchases of Fixed Assets
Purchases of Supplies
Purchase Returns and Allowances
Cash Disbursements Journal - CORRECT ANSWER- ✔✔Payments to Suppliers
Payments for Freight Costs
Payments to Other Sources (i.e. Utilities, Insurance, IRS, etc.)
Payroll Journal - CORRECT ANSWER- ✔✔Payments to employees
Actual Exam Questions and CORRECT
Answers
how does a company create value? - CORRECT ANSWER- ✔✔a company transforms
resources into goods and services that it sells to customers
what is the purpose of a company? - CORRECT ANSWER- ✔✔to create value
The accounting system is used to - CORRECT ANSWER- ✔✔-measure, record, categorize,
and summarize the daily operating activities
-provide accountability of all levels of management for their responsibilities
-protect business assets from unauthorized use or consumption
9 Step Accounting Cycle - CORRECT ANSWER- ✔✔1. Transactions Occur
2. Prepare Documents
3. Record in Journals
4. Post to Ledgers
5. Prepare Unadjusted G/L Trial Balance
6. Prepare and Post Adjusting entries
7. prepare Adjusted Trial Balance
8. Prepare Financial Statements
9. Prepare Closing Entries
Transactions - CORRECT ANSWER- ✔✔exchanges of goods and services
three most commons transaction cycles - CORRECT ANSWER- ✔✔-sales and cash receipts
-purchases and cash disbursements
,-payroll
characteristics of value chain cycle - CORRECT ANSWER- ✔✔1. duality - for each event a
company gives something, a related event will cause the company to receive something
2. Stock flow - one inflow and one outflow of a resources
Duality of Sales and Cash Receipts Cycle - CORRECT ANSWER- ✔✔Input: Good or
Service
Output: cash
Duality of Purchases and Cash Disbursements Cycle - CORRECT ANSWER- ✔✔Input::
Cash
Output: Fixed assets, raw material, inventory
Duality of Payroll Cycle - CORRECT ANSWER- ✔✔Input: Cash
Output: Labor
Duality of Financing Cycle - CORRECT ANSWER- ✔✔Input: Cash
Output: Cash
Duality Conversion Cycle - CORRECT ANSWER- ✔✔Input: Direct materials, direct labor,
overhead
Output: Finished Goods
Examples of documents - CORRECT ANSWER- ✔✔time cards, customer purchase order,
sales invoices
methods of document preparation - CORRECT ANSWER- ✔✔internal (within company)
and external (by an outsider)
*may be electronic or paper-based
, documents prepared before a transaction occurs - CORRECT ANSWER- ✔✔purchase order
customer purchase order
documents prepared at the same time a transaction occurs - CORRECT ANSWER-
✔✔receiving report
bill of lading
documents prepared after a transaction occurs - CORRECT ANSWER- ✔✔sales invoice
vendor sales invoice
Sales Journal - CORRECT ANSWER- ✔✔credit sales
sales returns and allowance
Cash Receipts Journal - CORRECT ANSWER- ✔✔Cash Sales
Cash Receipts from Customers
Cash receipts from other sources (i.e. bank loans)
Purchases Journal - CORRECT ANSWER- ✔✔Purchases of Inventory
Purchases of Fixed Assets
Purchases of Supplies
Purchase Returns and Allowances
Cash Disbursements Journal - CORRECT ANSWER- ✔✔Payments to Suppliers
Payments for Freight Costs
Payments to Other Sources (i.e. Utilities, Insurance, IRS, etc.)
Payroll Journal - CORRECT ANSWER- ✔✔Payments to employees
