ACCT 3110 ENTRANCE CERTIFICATION
SCRIPT 2026 QUESTIONS WITH SOLUTIONS
GRADED A+
◍ increased by $61,000..
Answer: During February, assets increased by $85,000 and liabilities
increased by $24,000. Equity must have
◍ Collection of previously wirren off AR.
Answer: A/R DR XXXAllowance Cr XXXCash DR XXXA/R CR XXX
◍ Who is FASB and what is their role?.
Answer: Financial Accounting Standards Board, Sets accounting standards
for GAAP
◍ If a real estate company fails to accrue commission revenue:.
Answer: Assets are understated, and net income is understated
◍ Supplies expense.
Answer: Which of the following accounts would need to be closed at the end
of the period?
◍ Sales on accounts on periodic systementry.
Answer: A/R Dr xxxRevenue Cr xxx
◍ Liabilities are decreased.
Answer: by debits
◍ The depreciation method that does not initially use the residual value in
depreciation calculations is the.
Answer: Double-declining balance method
◍ accomplish both a and b. (increase total assets and increase stockholder's
equity).
, Answer: Performing a service on account will
◍ Buying equipment on account.
Answer: Which of the following transactions will increase an asset and
increase a liability?
◍ Recording Cogs on periodic system entry.
Answer: Cogs Dr XXXEnd bal Inventory Dr XXXBegin Bal Inv Cr
XxxPurchases Cr xxx
◍ What is the effect on the financial statements of recording depreciation on
equipment?.
Answer: Net income, assets, and stockholders' equity are all decreased.
◍ Which of the following statements regarding business organizations is NOT
correct?Owners of a corporation are called members.The business is liable
for company debts in a Limited Liability Company.In a limited liability
partnership, each partner is only liable for partnership debts to the extent of
his or her investment in the partnership.The owner of a proprietorship is
personally liable for all the business debts..
Answer: Owners of a corporation are called members.
◍ Which of the following statements is correct regarding correcting
accounting errors?.
Answer: Mistakenly posting a $400 debit as a $40 debit while correctly
recording the credit is a SLIDE ERROR that can be uncovered by dividing
the trial balance difference by 9.
◍ Jenner corporation paid its annual dividend. This transaction represents
a(n):.
Answer: Distribution to stockholders
◍ ABC corporation issues 1,000 shares of $10 par value common stock at $12
per share. In recording the transaction, credits are made to:.
Answer: Common Stock $10,000 and Paid-in Capital in Excess of Par Value
$2,000
SCRIPT 2026 QUESTIONS WITH SOLUTIONS
GRADED A+
◍ increased by $61,000..
Answer: During February, assets increased by $85,000 and liabilities
increased by $24,000. Equity must have
◍ Collection of previously wirren off AR.
Answer: A/R DR XXXAllowance Cr XXXCash DR XXXA/R CR XXX
◍ Who is FASB and what is their role?.
Answer: Financial Accounting Standards Board, Sets accounting standards
for GAAP
◍ If a real estate company fails to accrue commission revenue:.
Answer: Assets are understated, and net income is understated
◍ Supplies expense.
Answer: Which of the following accounts would need to be closed at the end
of the period?
◍ Sales on accounts on periodic systementry.
Answer: A/R Dr xxxRevenue Cr xxx
◍ Liabilities are decreased.
Answer: by debits
◍ The depreciation method that does not initially use the residual value in
depreciation calculations is the.
Answer: Double-declining balance method
◍ accomplish both a and b. (increase total assets and increase stockholder's
equity).
, Answer: Performing a service on account will
◍ Buying equipment on account.
Answer: Which of the following transactions will increase an asset and
increase a liability?
◍ Recording Cogs on periodic system entry.
Answer: Cogs Dr XXXEnd bal Inventory Dr XXXBegin Bal Inv Cr
XxxPurchases Cr xxx
◍ What is the effect on the financial statements of recording depreciation on
equipment?.
Answer: Net income, assets, and stockholders' equity are all decreased.
◍ Which of the following statements regarding business organizations is NOT
correct?Owners of a corporation are called members.The business is liable
for company debts in a Limited Liability Company.In a limited liability
partnership, each partner is only liable for partnership debts to the extent of
his or her investment in the partnership.The owner of a proprietorship is
personally liable for all the business debts..
Answer: Owners of a corporation are called members.
◍ Which of the following statements is correct regarding correcting
accounting errors?.
Answer: Mistakenly posting a $400 debit as a $40 debit while correctly
recording the credit is a SLIDE ERROR that can be uncovered by dividing
the trial balance difference by 9.
◍ Jenner corporation paid its annual dividend. This transaction represents
a(n):.
Answer: Distribution to stockholders
◍ ABC corporation issues 1,000 shares of $10 par value common stock at $12
per share. In recording the transaction, credits are made to:.
Answer: Common Stock $10,000 and Paid-in Capital in Excess of Par Value
$2,000
