PRINCIPLES OF ACCOUNTING FINAL
EXAM QUESTIONS AND ANSWERS |
COMPREHENSIVE ACCOUNTING STUDY
GUIDE 2026 | GRADED A+ |
GUARANTEED SUCCESS
Updated 2026 Questions and Answers | 100% Verified
Exam Prep
,Which of the following accounts does no to onto the D
income statement?
A: Sales Revenue
B: Rent expense
C: Insurance expense
D: unearned revenue
The unadjusted trial balance for a prepaid rent shows a B
12,000 balance. At the end of this period, 7,000 rent has
been used. The adjusted trial balance for prepaid rent
shows what balance?
A: 7,000 Debit
B: 5,000 Debit
C: 5,000 credit
D: 7,000 Credit
A company bought a two year insurance policy on Aug. B
1st for 150 per month. No adjustments have been made
since then. What is the adjusting entry of Dec. 31 of this
year?
A: Debit prepaid insurance 150, Credit insurance expense
150
B: Debit insurance expense 750, credit prepaid insurance
750
C: Debit insurance expense 150, credit prepaid insurance
150
D: debit prepaid insurance 750, credit insurance expense
750
On the unadjusted trial balance, which accounts should B
have have their balance listed in the debit column?
A: Liabilities, revenue, common stock
B: Assets, dividends, and expenses
C: Assets, revenues, and dividends
D: Liabilities, revenues, and dividends
Which of the following is a true statement regarding the C
unearned revenue account?
A: Unearned revenue is accrued as the business provides
goods or services
B: unearned revenue is expensed as the business
provides goods or services
C: Unearned revenue decreases as the business provides
goods or services
D: unearned revenue increases as the business provides
goods or services
, The account cash had a beginning balance of zero and B
the following changes: increase of 250, decrease of 75,
increase of 113, and a decrease of 35. The ending balance
is a:
A: Credit balance of 253
B: Debit balance of 253
C: debit balance of 363
D: credit balance of 110
The general ledger is arranged in what order? D
A: Chronological
B: normal credit balance accounts first
C: alphabetical order of the account names
D: account order
Jill invested 25,000 in her business. the journal entry (for C
the business) would include a:
A: credit cash for 25,000 and a debit to common stock for
25,000
B: Debit cash for 25,000 and a credit to dividends for
25,000
C: debit to cash for 25,000 and a credit to common stock
for 25,000
D: credit to cash for 25,000 and a debit to dividends for
25,000
What is the basic account equation? C
A: Revenue minus expenses equal net income
B: Debits equal credits
C: Assets equal liabilities plus owners equity
D: Beginning retained earnings plus net income minus
dividends equals ending retained earnings
Respectively, cash, rent expense, and accounts payable C
are:
A: All permanent accounts
B: permanent, temporary, and temporary accounts
C: permanent, temporary, and permanent accounts
D: Temporary, permanent, and temporary accounts
EXAM QUESTIONS AND ANSWERS |
COMPREHENSIVE ACCOUNTING STUDY
GUIDE 2026 | GRADED A+ |
GUARANTEED SUCCESS
Updated 2026 Questions and Answers | 100% Verified
Exam Prep
,Which of the following accounts does no to onto the D
income statement?
A: Sales Revenue
B: Rent expense
C: Insurance expense
D: unearned revenue
The unadjusted trial balance for a prepaid rent shows a B
12,000 balance. At the end of this period, 7,000 rent has
been used. The adjusted trial balance for prepaid rent
shows what balance?
A: 7,000 Debit
B: 5,000 Debit
C: 5,000 credit
D: 7,000 Credit
A company bought a two year insurance policy on Aug. B
1st for 150 per month. No adjustments have been made
since then. What is the adjusting entry of Dec. 31 of this
year?
A: Debit prepaid insurance 150, Credit insurance expense
150
B: Debit insurance expense 750, credit prepaid insurance
750
C: Debit insurance expense 150, credit prepaid insurance
150
D: debit prepaid insurance 750, credit insurance expense
750
On the unadjusted trial balance, which accounts should B
have have their balance listed in the debit column?
A: Liabilities, revenue, common stock
B: Assets, dividends, and expenses
C: Assets, revenues, and dividends
D: Liabilities, revenues, and dividends
Which of the following is a true statement regarding the C
unearned revenue account?
A: Unearned revenue is accrued as the business provides
goods or services
B: unearned revenue is expensed as the business
provides goods or services
C: Unearned revenue decreases as the business provides
goods or services
D: unearned revenue increases as the business provides
goods or services
, The account cash had a beginning balance of zero and B
the following changes: increase of 250, decrease of 75,
increase of 113, and a decrease of 35. The ending balance
is a:
A: Credit balance of 253
B: Debit balance of 253
C: debit balance of 363
D: credit balance of 110
The general ledger is arranged in what order? D
A: Chronological
B: normal credit balance accounts first
C: alphabetical order of the account names
D: account order
Jill invested 25,000 in her business. the journal entry (for C
the business) would include a:
A: credit cash for 25,000 and a debit to common stock for
25,000
B: Debit cash for 25,000 and a credit to dividends for
25,000
C: debit to cash for 25,000 and a credit to common stock
for 25,000
D: credit to cash for 25,000 and a debit to dividends for
25,000
What is the basic account equation? C
A: Revenue minus expenses equal net income
B: Debits equal credits
C: Assets equal liabilities plus owners equity
D: Beginning retained earnings plus net income minus
dividends equals ending retained earnings
Respectively, cash, rent expense, and accounts payable C
are:
A: All permanent accounts
B: permanent, temporary, and temporary accounts
C: permanent, temporary, and permanent accounts
D: Temporary, permanent, and temporary accounts
