ACCT 2301 Final Exam Questions and Answers Already Passed Latest Update 2025-2026
The accounting process is correctly sequenced as - Answers identification, recording,
communication.
Bookkeeping differs from accounting in that bookkeeping primarily involves which part of the
accounting process - Answers Recording
Generally accepted accounting principles are - Answers standards that indicate how to report
economic events.
A basic assumption of accounting that requires activities of an entity be kept separate from the
activities of its owner is referred to as the - Answers economic entity assumption.
The assumption that the unit of measure remains sufficiently constant over time is part of the -
Answers monetary unit assumption.
The normal balance of any account is the - Answers side which increases that account
An account consists of - Answers a title, a debit side, and a credit side.
A T-account is - Answers a way of depicting the basic form of an account.
An account consists of - Answers three parts
For the basic accounting equation to stay in balance, each transaction recorded must - Answers
affect two or more accounts
The adjustment for depreciation is an example - Answers apportioning costs between two or
more periods.
The revenue recognition principle dictates that revenue should be recognized in the accounting
records - Answers when it is earned.
The matching principle matches - Answers expenses with revenues.
Adjusting entries are required - Answers every time financial statements are prepared.
Adjusting entries are required - Answers because some costs expire with the passage of time
and have not yet been journalized.
If the total debit column exceeds the total credit column of the income statement on a
, worksheet, then the company - Answers suffered a net loss for the period.
When using a worksheet, adjusting entries are journalized - Answers after the worksheet is
completed and after financial statements have been prepared.
Assuming that there is a net loss for the period, debits equal credits in all but which section of
the worksheet? - Answers Income statement columns.
Closing entries are necessary for - Answers temporary accounts only.
Each of the following accounts is closed to Income Summary except - Answers Dividends.
Two categories of expenses for merchandising companies are - Answers cost of goods sold
and operating expenses.
Sales revenue less cost of goods sold is called - Answers gross profit.
Cost of goods sold is determined only at the end of the accounting period in - Answers a
periodic inventory system.
Which of the following is a true statement about inventory systems? - Answers Perpetual
inventory systems require more detailed inventory records.
Bryan Company purchased merchandise from Cates Company with freight terms of FOB
shipping point. The freight costs will be paid by the - Answers buyer.
Inventories affect - Answers both the balance sheet and the income statement.
If goods in transit are shipped FOB destination - Answers the seller has legal title to the goods
until they are delivered.
The inventory turnover ratio is computed by dividing cost of goods sold by - Answers average
inventory.
In a period of rising prices, FIFO will have - Answers lower cost of goods sold than LIFO.
Under the LCM approach, the market value is defined as - Answers current replacement cost.
Accounting information is relevant if it - Answers has either predictive or feedback value.
Accounting information should be verifiable in order to enhance - Answers reliability.
The economic entity assumption states that - Answers economic events can be identitfied with
a particular entity
The revenue recognition principle dictates that revenue should be recognized in the accounting
period in which it is - Answers earned.
The accounting process is correctly sequenced as - Answers identification, recording,
communication.
Bookkeeping differs from accounting in that bookkeeping primarily involves which part of the
accounting process - Answers Recording
Generally accepted accounting principles are - Answers standards that indicate how to report
economic events.
A basic assumption of accounting that requires activities of an entity be kept separate from the
activities of its owner is referred to as the - Answers economic entity assumption.
The assumption that the unit of measure remains sufficiently constant over time is part of the -
Answers monetary unit assumption.
The normal balance of any account is the - Answers side which increases that account
An account consists of - Answers a title, a debit side, and a credit side.
A T-account is - Answers a way of depicting the basic form of an account.
An account consists of - Answers three parts
For the basic accounting equation to stay in balance, each transaction recorded must - Answers
affect two or more accounts
The adjustment for depreciation is an example - Answers apportioning costs between two or
more periods.
The revenue recognition principle dictates that revenue should be recognized in the accounting
records - Answers when it is earned.
The matching principle matches - Answers expenses with revenues.
Adjusting entries are required - Answers every time financial statements are prepared.
Adjusting entries are required - Answers because some costs expire with the passage of time
and have not yet been journalized.
If the total debit column exceeds the total credit column of the income statement on a
, worksheet, then the company - Answers suffered a net loss for the period.
When using a worksheet, adjusting entries are journalized - Answers after the worksheet is
completed and after financial statements have been prepared.
Assuming that there is a net loss for the period, debits equal credits in all but which section of
the worksheet? - Answers Income statement columns.
Closing entries are necessary for - Answers temporary accounts only.
Each of the following accounts is closed to Income Summary except - Answers Dividends.
Two categories of expenses for merchandising companies are - Answers cost of goods sold
and operating expenses.
Sales revenue less cost of goods sold is called - Answers gross profit.
Cost of goods sold is determined only at the end of the accounting period in - Answers a
periodic inventory system.
Which of the following is a true statement about inventory systems? - Answers Perpetual
inventory systems require more detailed inventory records.
Bryan Company purchased merchandise from Cates Company with freight terms of FOB
shipping point. The freight costs will be paid by the - Answers buyer.
Inventories affect - Answers both the balance sheet and the income statement.
If goods in transit are shipped FOB destination - Answers the seller has legal title to the goods
until they are delivered.
The inventory turnover ratio is computed by dividing cost of goods sold by - Answers average
inventory.
In a period of rising prices, FIFO will have - Answers lower cost of goods sold than LIFO.
Under the LCM approach, the market value is defined as - Answers current replacement cost.
Accounting information is relevant if it - Answers has either predictive or feedback value.
Accounting information should be verifiable in order to enhance - Answers reliability.
The economic entity assumption states that - Answers economic events can be identitfied with
a particular entity
The revenue recognition principle dictates that revenue should be recognized in the accounting
period in which it is - Answers earned.
