ACCT 330 Intermediate Accounting I FINAL ExaM, University of Kansas
School of Business, 2026/2027 – 50-Question GAAP & FASB Codification
Examination with Verified Solutions
Total Asset Turnover - ANSWER-measures the sales generated per dollar of assets; a
high or rising ratio suggests that the company is managing its assets more efficiently
Net Sales (or Operating Revenues)/Average Total Assets
Accounting - ANSWER-system that collects and processes (analyzes, measures and
records) financial information about an organization and reports that information to
decision makers
Accounting Entity - ANSWER-organization for which financial data are to be collected
Accounting Period - ANSWER-time period covered by the financial statements
Audit - ANSWER-examination of the financial reports to ensure that they represent what
they claim and conform with GAAP
Balance Sheet (Statement of Financial Position) - ANSWER-reports the amounts of
assets, liabilities and stockholders' equity of an accounting entity at a point in time
Basic Accounting Equation (Balance Sheet Equation) - ANSWER-Assets = Liabilities +
Stockholders' Equity
Generally Accepted Accounting Principles (GAAP) - ANSWER-measurements and
disclosure rules used to develop the information in financial statements
Income Statement (Statement of Income, Statement of Earnings, Statement of
Operations or Statement of Comprehensive Income) - ANSWER-reports the revenues
less the expenses of the accounting period
Notes (Footnotes) - ANSWER-provide supplemental information about the financial
condition of a company, without which the financial statements cannot be fully
understood
Statement of Cash Flows (Cash Flows Statement) - ANSWER-reports inflows and
outflows of cash during the accounting period in the categories of operating, investing
and financing
,Statement of Stockholders' Equity - ANSWER-reports the way that net income and the
distribution of dividends affected the financial position of the company during the
accounting period
Management - ANSWER-has primary responsibility for the accuracy of a company's
financial information.
Auditors - ANSWER-are responsible for expressing an opinion on the fairness of the
financial statement presentations based on their examination of the reports and records
of the company.
Account - ANSWER-standardized format that organizations use to accumulate the
dollar effect of transactions on each financial statement item
assets: cash, accounts receivable, inventory, prepaid expenses, investments, property
(buildings and land) and equipment, and intangibles (rights without physical substance)
liabilities: accounts payable, notes payable, accrued expenses payable, unearned
revenues, and taxes payable
stockholders' equity: common stock, additional paid-in capital, and retained earnings
Accounting Cycle - ANSWER-process followed by entities to analyze and record
transactions, adjust the records a the end of the period, prepare financial statements,
and prepare the records for the next cycle
Additional Paid-in Capital (Paid-in Capital, Contributed Capital in Excess of Par) -
ANSWER-amount of capital contributed by the shareholders less the par value of the
stock
Assets - ANSWER-probably future economic benefits owned or controlled by an entity
as a result of past transactions or events
Business Transaction - ANSWER-exchange of cash, goods or services for cash, goods,
services or promises between a business and one or more external parties to a
business (not the exchange of a promise for a promise)
Common Stock - ANSWER-account that is equal to the number of shares issued by a
corporation times the par value per share; basic voting stock issued by a corporation
Continuity (Going-Concern) Assumption - ANSWER-states that businesses are
assumed to continue into the foreseeable future
Credit - ANSWER-(cr) refers to the right side of a T-account
Current Assets - ANSWER-assets that will be used or turned into cash within one year.
Inventory is always considered a current asset regardless of the time needed to
produce and sell it.
Current Liabilities - ANSWER-obligations that will be settled by providing cash, goods,
other current assets, or services within the coming year
ex. accounts payable, accrued costs, deferred revenue
Debit - ANSWER-(dr) refers to the left side of a T-account
Faithful Representation - ANSWER-requires that the information be complete, neutral,
and free from error
Journal Entry - ANSWER-accounting method for expressing the effects of a transaction
on accounts in a debits-equal-credits format
,Liabilities - ANSWER-probable future sacrifices of economic benefits arising form
present obligations of a business as a result of past transactions or events
Mixed-Attribute Measurement Model - ANSWER-most balance sheet elements are
recorded following the historical cost (or cost) principle; financial statement elements
should be recorded at the cash equivalent cost on the date of the transaction; however,
these values may be adjusted to other amounts such as market value depending on
certain conditions.
Par Value of Stock - ANSWER-legal amount per share established by the board of
directors; it represents the minimum amount a stockholder must contribute and has no
relationship to the market price of the stock
Primary Objective of Financial Reporting to Eternal Users - ANSWER-is to provide
financial information about the reporting entity that is useful to existing and potential
investors, lenders, and other creditors in making decisions about providing resources to
the entity
Relevant Information - ANSWER-can influence a decision; it is timely and has predictive
and/or feedback value
Retained Earnings - ANSWER-cumulative earnings of a company that have not been
distributed to the owners and are reinvested in the business
Separate-Entity Assumption - ANSWER-states that a business's activities are
accounted for separately from those of its owners
Stable Monetary Unit Assumption - ANSWER-states that accounting information should
be measured and reported in the national monetary unit without any adjustment for
changes in purchasing power
Stockholders' Equity (Shareholders' or Owners' Equity) - ANSWER-residual interest in
assets of the entity after settling liabilities; financing provided by the owners (contributed
capital) and by business operations (earned capital)
T-account - ANSWER-tool for summarizing transaction effects for each account,
determining balances and drawing inferences about a company's activities
Transaction - ANSWER-(1) an exchange of assets or services for assets, services or
promises to pay between a business and one or more external parties to a business or
(2) a measurable internal event such as adjustments for the use of assets in operations
Transaction Analysis - ANSWER-process of studying a transaction to determine its
economic effect on the fundamental accounting model
Trial Balance - ANSWER-list of all accounts with their balances to provide a check on
the equality of the debits and credits
Current Ratio - ANSWER-measures ability of the company to pay its short-term
obligations with current assets.
current assets/current liabilities
Accrual Basis Accounting - ANSWER-records revenues when earned and expenses
when incurred, regardless of the timing of cash receipts or payment
Cash Basis Accounting - ANSWER-records revenues when cash is received and
expenses when cash is paid
Expense Matching Principle - ANSWER-requires that expenses be recorded when
incurred in earning revenue
, Expenses - ANSWER-outflows or the using up of assets or increases in liabilities from
ongoing operations incurred to generate revenues during the period
Gains - ANSWER-increases in assets or decreases in liabilities from peripheral
transactions
Losses - ANSWER-decreases in assets or increases in liabilities from peripheral
transactions
Operating (Cash-to-Cash) Cycle - ANSWER-time it takes for a company to pay cash to
suppliers, sell goods and services to customers, and collect cash from customers
Revenue Realization Principle - ANSWER-states that revenues are recognized when
(1) goods or services are delivered, (2) there is persuasive evidence of an arrangement
for customer payment, (3) the price is fixed or determinable, and (4) collection is
reasonably assured
Revenues - ANSWER-increases in assets or settlements of liabilities from ongoing
operations
Time Period Assumption - ANSWER-indicates that the long life of a company can be
reported in shorter time periods
Net Profit Margin Ratio - ANSWER-measures the profit generated per dollar of sales
(operating revenues). A high ratio suggests that a company is generating revenues
and/or controlling expenses effectively
Net Income/Net Sales (or Operating Revenues)
Accrued Expenses - ANSWER-previously unrecorded expenses that need to be
adjusted at the end of the accounting period to reflect the amount incurred and the
related payable account
Accrued Revenues - ANSWER-previously unrecorded revenues that need to be
adjusted at the end of the accounting period to reflect the amount earned and the
related receivable account
Adjusting Entries - ANSWER-entries necessary at the end of the accounting period to
measure all revenues and expenses of that period
Closing Entry - ANSWER-transfers balances in temporary accounts to Retained
Earnings at the end of the accounting period
Contra-Account - ANSWER-account that is an offset to, or reduction of, the primary
account
Deferred Expenses - ANSWER-previously acquired assets that need to be adjusted at
the end of the accounting period to reflect the amount of expense incurred in using the
assets to generate revenue
Deferred (Unearned) Revenues - ANSWER-previously recorded liabilities that need to
be adjusted at the end of the accounting period to reflect the amount of revenue earned
Net Book Value (Book Value, Carrying Value) - ANSWER-is the difference between an
asset's acquisition cost and accumulated depreciation, its related contra-account
~this is the amount reported on the balance sheet
Permanent (Real ) Accounts - ANSWER-balance sheet accounts that carry their ending
balances into the next accounting period
Post-Closing Trial Balance - ANSWER-prepared as an additional step of the accounting
cycle to check that debits equal credits and all temporary accounts have been closed
School of Business, 2026/2027 – 50-Question GAAP & FASB Codification
Examination with Verified Solutions
Total Asset Turnover - ANSWER-measures the sales generated per dollar of assets; a
high or rising ratio suggests that the company is managing its assets more efficiently
Net Sales (or Operating Revenues)/Average Total Assets
Accounting - ANSWER-system that collects and processes (analyzes, measures and
records) financial information about an organization and reports that information to
decision makers
Accounting Entity - ANSWER-organization for which financial data are to be collected
Accounting Period - ANSWER-time period covered by the financial statements
Audit - ANSWER-examination of the financial reports to ensure that they represent what
they claim and conform with GAAP
Balance Sheet (Statement of Financial Position) - ANSWER-reports the amounts of
assets, liabilities and stockholders' equity of an accounting entity at a point in time
Basic Accounting Equation (Balance Sheet Equation) - ANSWER-Assets = Liabilities +
Stockholders' Equity
Generally Accepted Accounting Principles (GAAP) - ANSWER-measurements and
disclosure rules used to develop the information in financial statements
Income Statement (Statement of Income, Statement of Earnings, Statement of
Operations or Statement of Comprehensive Income) - ANSWER-reports the revenues
less the expenses of the accounting period
Notes (Footnotes) - ANSWER-provide supplemental information about the financial
condition of a company, without which the financial statements cannot be fully
understood
Statement of Cash Flows (Cash Flows Statement) - ANSWER-reports inflows and
outflows of cash during the accounting period in the categories of operating, investing
and financing
,Statement of Stockholders' Equity - ANSWER-reports the way that net income and the
distribution of dividends affected the financial position of the company during the
accounting period
Management - ANSWER-has primary responsibility for the accuracy of a company's
financial information.
Auditors - ANSWER-are responsible for expressing an opinion on the fairness of the
financial statement presentations based on their examination of the reports and records
of the company.
Account - ANSWER-standardized format that organizations use to accumulate the
dollar effect of transactions on each financial statement item
assets: cash, accounts receivable, inventory, prepaid expenses, investments, property
(buildings and land) and equipment, and intangibles (rights without physical substance)
liabilities: accounts payable, notes payable, accrued expenses payable, unearned
revenues, and taxes payable
stockholders' equity: common stock, additional paid-in capital, and retained earnings
Accounting Cycle - ANSWER-process followed by entities to analyze and record
transactions, adjust the records a the end of the period, prepare financial statements,
and prepare the records for the next cycle
Additional Paid-in Capital (Paid-in Capital, Contributed Capital in Excess of Par) -
ANSWER-amount of capital contributed by the shareholders less the par value of the
stock
Assets - ANSWER-probably future economic benefits owned or controlled by an entity
as a result of past transactions or events
Business Transaction - ANSWER-exchange of cash, goods or services for cash, goods,
services or promises between a business and one or more external parties to a
business (not the exchange of a promise for a promise)
Common Stock - ANSWER-account that is equal to the number of shares issued by a
corporation times the par value per share; basic voting stock issued by a corporation
Continuity (Going-Concern) Assumption - ANSWER-states that businesses are
assumed to continue into the foreseeable future
Credit - ANSWER-(cr) refers to the right side of a T-account
Current Assets - ANSWER-assets that will be used or turned into cash within one year.
Inventory is always considered a current asset regardless of the time needed to
produce and sell it.
Current Liabilities - ANSWER-obligations that will be settled by providing cash, goods,
other current assets, or services within the coming year
ex. accounts payable, accrued costs, deferred revenue
Debit - ANSWER-(dr) refers to the left side of a T-account
Faithful Representation - ANSWER-requires that the information be complete, neutral,
and free from error
Journal Entry - ANSWER-accounting method for expressing the effects of a transaction
on accounts in a debits-equal-credits format
,Liabilities - ANSWER-probable future sacrifices of economic benefits arising form
present obligations of a business as a result of past transactions or events
Mixed-Attribute Measurement Model - ANSWER-most balance sheet elements are
recorded following the historical cost (or cost) principle; financial statement elements
should be recorded at the cash equivalent cost on the date of the transaction; however,
these values may be adjusted to other amounts such as market value depending on
certain conditions.
Par Value of Stock - ANSWER-legal amount per share established by the board of
directors; it represents the minimum amount a stockholder must contribute and has no
relationship to the market price of the stock
Primary Objective of Financial Reporting to Eternal Users - ANSWER-is to provide
financial information about the reporting entity that is useful to existing and potential
investors, lenders, and other creditors in making decisions about providing resources to
the entity
Relevant Information - ANSWER-can influence a decision; it is timely and has predictive
and/or feedback value
Retained Earnings - ANSWER-cumulative earnings of a company that have not been
distributed to the owners and are reinvested in the business
Separate-Entity Assumption - ANSWER-states that a business's activities are
accounted for separately from those of its owners
Stable Monetary Unit Assumption - ANSWER-states that accounting information should
be measured and reported in the national monetary unit without any adjustment for
changes in purchasing power
Stockholders' Equity (Shareholders' or Owners' Equity) - ANSWER-residual interest in
assets of the entity after settling liabilities; financing provided by the owners (contributed
capital) and by business operations (earned capital)
T-account - ANSWER-tool for summarizing transaction effects for each account,
determining balances and drawing inferences about a company's activities
Transaction - ANSWER-(1) an exchange of assets or services for assets, services or
promises to pay between a business and one or more external parties to a business or
(2) a measurable internal event such as adjustments for the use of assets in operations
Transaction Analysis - ANSWER-process of studying a transaction to determine its
economic effect on the fundamental accounting model
Trial Balance - ANSWER-list of all accounts with their balances to provide a check on
the equality of the debits and credits
Current Ratio - ANSWER-measures ability of the company to pay its short-term
obligations with current assets.
current assets/current liabilities
Accrual Basis Accounting - ANSWER-records revenues when earned and expenses
when incurred, regardless of the timing of cash receipts or payment
Cash Basis Accounting - ANSWER-records revenues when cash is received and
expenses when cash is paid
Expense Matching Principle - ANSWER-requires that expenses be recorded when
incurred in earning revenue
, Expenses - ANSWER-outflows or the using up of assets or increases in liabilities from
ongoing operations incurred to generate revenues during the period
Gains - ANSWER-increases in assets or decreases in liabilities from peripheral
transactions
Losses - ANSWER-decreases in assets or increases in liabilities from peripheral
transactions
Operating (Cash-to-Cash) Cycle - ANSWER-time it takes for a company to pay cash to
suppliers, sell goods and services to customers, and collect cash from customers
Revenue Realization Principle - ANSWER-states that revenues are recognized when
(1) goods or services are delivered, (2) there is persuasive evidence of an arrangement
for customer payment, (3) the price is fixed or determinable, and (4) collection is
reasonably assured
Revenues - ANSWER-increases in assets or settlements of liabilities from ongoing
operations
Time Period Assumption - ANSWER-indicates that the long life of a company can be
reported in shorter time periods
Net Profit Margin Ratio - ANSWER-measures the profit generated per dollar of sales
(operating revenues). A high ratio suggests that a company is generating revenues
and/or controlling expenses effectively
Net Income/Net Sales (or Operating Revenues)
Accrued Expenses - ANSWER-previously unrecorded expenses that need to be
adjusted at the end of the accounting period to reflect the amount incurred and the
related payable account
Accrued Revenues - ANSWER-previously unrecorded revenues that need to be
adjusted at the end of the accounting period to reflect the amount earned and the
related receivable account
Adjusting Entries - ANSWER-entries necessary at the end of the accounting period to
measure all revenues and expenses of that period
Closing Entry - ANSWER-transfers balances in temporary accounts to Retained
Earnings at the end of the accounting period
Contra-Account - ANSWER-account that is an offset to, or reduction of, the primary
account
Deferred Expenses - ANSWER-previously acquired assets that need to be adjusted at
the end of the accounting period to reflect the amount of expense incurred in using the
assets to generate revenue
Deferred (Unearned) Revenues - ANSWER-previously recorded liabilities that need to
be adjusted at the end of the accounting period to reflect the amount of revenue earned
Net Book Value (Book Value, Carrying Value) - ANSWER-is the difference between an
asset's acquisition cost and accumulated depreciation, its related contra-account
~this is the amount reported on the balance sheet
Permanent (Real ) Accounts - ANSWER-balance sheet accounts that carry their ending
balances into the next accounting period
Post-Closing Trial Balance - ANSWER-prepared as an additional step of the accounting
cycle to check that debits equal credits and all temporary accounts have been closed
