Acct 2101 Exam 2 questions n
answers 2025/2026
Example of permanent accounts - CORRECT ANSWER ✔✔Assets/contra assets
liabilities
equity (RETAINED EARNINGS, contributed capital
expense accrual - CORRECT ANSWER ✔✔It has been incurred but not yet paid
What is an accrual - CORRECT ANSWER ✔✔they are a transaction that have occurred but not
yet realized in cash Cash hasn't change hands yet
Revenue accrual - CORRECT ANSWER ✔✔It has been earned but not yet received.
Example of revenue accrual - CORRECT ANSWER ✔✔Account receivable and interest
example of expense accrual - CORRECT ANSWER ✔✔Wages and interest
Deferrals - CORRECT ANSWER ✔✔Cash has been realized paid) but the transaction has not yet
been completed. Cash has changed hands already.
Revenue deferrals - CORRECT ANSWER ✔✔when the cash is been received but a service hasn't
been provided yet
Example of revenue deferrals - CORRECT ANSWER ✔✔unearned revenues, ex gift cards. and
deposits
, Expense deferrals - CORRECT ANSWER ✔✔Money has been paid but not matched to revenues
Example of expenses deferrals - CORRECT ANSWER ✔✔Supplies, prepaid expenses such as rent
or insurance
Depreciation is a type of - CORRECT ANSWER ✔✔deferral
Example of depreciation - CORRECT ANSWER ✔✔accumulated depreciation and contra-asset
account
An adjusting entry affects what 2 types of accounts - CORRECT ANSWER ✔✔one balance sheet
and one income statement
When doing an adjusting entry, when is it exchanged? - CORRECT ANSWER ✔✔Never, cash is
never affected by an adjusting entry
To accrue or differ interest - CORRECT ANSWER ✔✔Principal x rate x time
(For time divide by 12)
adjusted trial balance - CORRECT ANSWER ✔✔debits = credits
Adjust the accounts is step # - CORRECT ANSWER ✔✔5
Adjust trial balance is step # - CORRECT ANSWER ✔✔6
Prepare financial statements is step # - CORRECT ANSWER ✔✔7
answers 2025/2026
Example of permanent accounts - CORRECT ANSWER ✔✔Assets/contra assets
liabilities
equity (RETAINED EARNINGS, contributed capital
expense accrual - CORRECT ANSWER ✔✔It has been incurred but not yet paid
What is an accrual - CORRECT ANSWER ✔✔they are a transaction that have occurred but not
yet realized in cash Cash hasn't change hands yet
Revenue accrual - CORRECT ANSWER ✔✔It has been earned but not yet received.
Example of revenue accrual - CORRECT ANSWER ✔✔Account receivable and interest
example of expense accrual - CORRECT ANSWER ✔✔Wages and interest
Deferrals - CORRECT ANSWER ✔✔Cash has been realized paid) but the transaction has not yet
been completed. Cash has changed hands already.
Revenue deferrals - CORRECT ANSWER ✔✔when the cash is been received but a service hasn't
been provided yet
Example of revenue deferrals - CORRECT ANSWER ✔✔unearned revenues, ex gift cards. and
deposits
, Expense deferrals - CORRECT ANSWER ✔✔Money has been paid but not matched to revenues
Example of expenses deferrals - CORRECT ANSWER ✔✔Supplies, prepaid expenses such as rent
or insurance
Depreciation is a type of - CORRECT ANSWER ✔✔deferral
Example of depreciation - CORRECT ANSWER ✔✔accumulated depreciation and contra-asset
account
An adjusting entry affects what 2 types of accounts - CORRECT ANSWER ✔✔one balance sheet
and one income statement
When doing an adjusting entry, when is it exchanged? - CORRECT ANSWER ✔✔Never, cash is
never affected by an adjusting entry
To accrue or differ interest - CORRECT ANSWER ✔✔Principal x rate x time
(For time divide by 12)
adjusted trial balance - CORRECT ANSWER ✔✔debits = credits
Adjust the accounts is step # - CORRECT ANSWER ✔✔5
Adjust trial balance is step # - CORRECT ANSWER ✔✔6
Prepare financial statements is step # - CORRECT ANSWER ✔✔7
