MARSHALL UNIVERSITY ACCOUNTING 1 FINAL EXAM REVIEW – EXAM PRACTICE
QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS) PLUS RATIONALES 2026
Q&A | INSTANT DOWNLOAD PDF
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CORE DOMAINS
Accounting Principles (GAAP)
Double-Entry Bookkeeping System
Financial Statements Preparation
Journal Entries and Posting
Adjusting Entries (Accruals & Deferrals)
Depreciation Methods
Accounts Receivable & Payable
Inventory Valuation
Trial Balance Preparation
Ethics in Accounting
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INTRODUCTION
This exam review is designed to assess foundational and applied knowledge in
introductory financial accounting. It evaluates your ability to analyze transactions, prepare
and interpret financial statements, and apply generally accepted accounting principles in
real-world scenarios. The questions include both conceptual and practical accounting
problems such as journal entries, adjusting entries, and financial reporting. Emphasis is
placed on decision-making, accuracy in recording transactions, and understanding the
accounting cycle. This assessment mirrors university-level final exams and prepares
students for professional accounting environments requiring analytical thinking and
technical precision in financial reporting and interpretation.
SECTION ONE: QUESTIONS 1–50
Question 1
Which accounting principle requires expenses to be matched with related revenues?
A. Cost Principle
B. Matching Principle
,C. Revenue Recognition Principle
D. Full Disclosure Principle
🟢 Correct Answer: B. Matching Principle
🔴 Explanation: The matching principle ensures expenses are recorded in the same period
as the revenues they help generate.
Question 2
Which financial statement shows assets, liabilities, and equity?
A. Income Statement
B. Statement of Cash Flows
C. Balance Sheet
D. Retained Earnings Statement
🟢 Correct Answer: C. Balance Sheet
🔴 Explanation: The balance sheet presents a snapshot of financial position at a specific
date.
, Question 3
Which account is increased with a credit entry?
A. Assets
B. Expenses
C. Dividends
D. Revenue
🟢 Correct Answer: D. Revenue
🔴 Explanation: Revenues are increased by credits under double-entry accounting rules.
Question 4
What is the normal balance of an asset account?
A. Credit
B. Debit
C. Zero
D. Either debit or credit
🟢 Correct Answer: B. Debit
🔴 Explanation: Asset accounts typically have debit balances because they represent
resources owned.
QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS) PLUS RATIONALES 2026
Q&A | INSTANT DOWNLOAD PDF
*
CORE DOMAINS
Accounting Principles (GAAP)
Double-Entry Bookkeeping System
Financial Statements Preparation
Journal Entries and Posting
Adjusting Entries (Accruals & Deferrals)
Depreciation Methods
Accounts Receivable & Payable
Inventory Valuation
Trial Balance Preparation
Ethics in Accounting
, *
INTRODUCTION
This exam review is designed to assess foundational and applied knowledge in
introductory financial accounting. It evaluates your ability to analyze transactions, prepare
and interpret financial statements, and apply generally accepted accounting principles in
real-world scenarios. The questions include both conceptual and practical accounting
problems such as journal entries, adjusting entries, and financial reporting. Emphasis is
placed on decision-making, accuracy in recording transactions, and understanding the
accounting cycle. This assessment mirrors university-level final exams and prepares
students for professional accounting environments requiring analytical thinking and
technical precision in financial reporting and interpretation.
SECTION ONE: QUESTIONS 1–50
Question 1
Which accounting principle requires expenses to be matched with related revenues?
A. Cost Principle
B. Matching Principle
,C. Revenue Recognition Principle
D. Full Disclosure Principle
🟢 Correct Answer: B. Matching Principle
🔴 Explanation: The matching principle ensures expenses are recorded in the same period
as the revenues they help generate.
Question 2
Which financial statement shows assets, liabilities, and equity?
A. Income Statement
B. Statement of Cash Flows
C. Balance Sheet
D. Retained Earnings Statement
🟢 Correct Answer: C. Balance Sheet
🔴 Explanation: The balance sheet presents a snapshot of financial position at a specific
date.
, Question 3
Which account is increased with a credit entry?
A. Assets
B. Expenses
C. Dividends
D. Revenue
🟢 Correct Answer: D. Revenue
🔴 Explanation: Revenues are increased by credits under double-entry accounting rules.
Question 4
What is the normal balance of an asset account?
A. Credit
B. Debit
C. Zero
D. Either debit or credit
🟢 Correct Answer: B. Debit
🔴 Explanation: Asset accounts typically have debit balances because they represent
resources owned.
