ACC 100 Final Exam (60+ Questions) – GAAP, Financial Statements, Accounting Assumptions

This exam preparation document features 60+ questions and complete, correct answers for ACC 100: Introductory Financial Accounting, created for the 2025/2026 academic year at Toronto Metropolitan University. Focused on essential theoretical concepts, this resource is ideal for students preparing for final exams, midterms, or practical assessments in accounting fundamentals. The content emphasizes qualitative characteristics of accounting information (faithful, relevant, comparable, verifiable, timely, and understandable), as well as the core assumptions behind financial reporting such as the going concern principle, unit-of-measure, separate entity, and historic cost. Also included are foundational GAAP rules, ethical use of company resources, and detailed breakdowns of each of the four main financial statements: income statement, statement of retained earnings, balance sheet, and statement of cash flows. Students are guided through concepts like asset recognition, liability classification, equity calculations, and retained earnings. You'll also find simplified explanations of transaction analysis, revenue recognition, and prepaid vs. unearned items, as well as inventory costing methods including FIFO, average cost, and specific identification. This document is particularly useful for: Students in Bachelor of Commerce (BCom), Business Administration, or Accounting and Finance programs First-year or introductory accounting learners in ACC 100 or equivalent courses Anyone looking to strengthen their grasp of accounting theory and financial reporting for exams Clear question-and-answer formatting helps students review quickly and retain key information with minimal confusion. Keywords: ACC 100, final exam, financial accounting, GAAP, accounting assumptions, financial statements, income statement, retained earnings, balance sheet, statement of cash flows, accounting equation, assets, liabilities, owner’s equity, accounting principles, FIFO, specific identification, average cost method, prepaid expenses, unearned revenue, accounting theory, Toronto Metropolitan University