ACCY 201 FINAL EXAM BARTON 2026
FINANCIAL ACCOUNTING PRACTICE SET
ANSWERS FULL SOLUTION
◉ merchandise inventory.
Answer: goods available and ready to be sold -- includes cost to buy
goods, ship them to the store, and make them ready for sale
◉ Current liabilities.
Answer: anything that must be paid within one year (accounts
payable, wages payable, warranty liabilities, etc.)
◉ long term.
Answer: anything that can be paid in more than a year (notes
payable, lease liabilities, bonds payable)
◉ calculating bond interest expense for premiums/discounts.
Answer: interest = par value x market rate x (1/2)
◉ sarbanes-oxley.
,Answer: passed in order to prevent fraud -- a lot is the same as CME
stuff with governances and the CEO and CFO having to sign off of
financial statements
◉ capital stock.
Answer: is a general term that refers to any shares issued to obtain
capital (owner financing)
◉ common stock.
Answer: corporation's basic ownership share; also generically called
capital stock
◉ treasury stock.
Answer: Corporation's own stock that it reacquired and still holds
◉ preferred stock.
Answer: stock with a priority status over common stockholders in
one or more ways, such as paying dividends or distributing assets
◉ Authorized stock.
Answer: maximum number of shares a company is legally allowed to
issue (most companies will hold back amounts of stock to keep as a
backup)
, ◉ Treasury stock entries.
Answer: When stock is purchased:
debit treasury stock, common; credit cash
When the stock is re-issued:
debit cash, credit treasury stock,common
◉ par value.
Answer: amount assigned per share by the corporation in its charter
◉ No-Par value.
Answer: stock not assigned a value per share by the corporate
charter. its advantage is that it can be issued at any price without the
possibility of a minimum legal capital deficiency
◉ stated value.
Answer: no-par stock to which the directors assign a "stated" value
per share
◉ retained earnings.
Answer: increased by net income (found from income statement)
FINANCIAL ACCOUNTING PRACTICE SET
ANSWERS FULL SOLUTION
◉ merchandise inventory.
Answer: goods available and ready to be sold -- includes cost to buy
goods, ship them to the store, and make them ready for sale
◉ Current liabilities.
Answer: anything that must be paid within one year (accounts
payable, wages payable, warranty liabilities, etc.)
◉ long term.
Answer: anything that can be paid in more than a year (notes
payable, lease liabilities, bonds payable)
◉ calculating bond interest expense for premiums/discounts.
Answer: interest = par value x market rate x (1/2)
◉ sarbanes-oxley.
,Answer: passed in order to prevent fraud -- a lot is the same as CME
stuff with governances and the CEO and CFO having to sign off of
financial statements
◉ capital stock.
Answer: is a general term that refers to any shares issued to obtain
capital (owner financing)
◉ common stock.
Answer: corporation's basic ownership share; also generically called
capital stock
◉ treasury stock.
Answer: Corporation's own stock that it reacquired and still holds
◉ preferred stock.
Answer: stock with a priority status over common stockholders in
one or more ways, such as paying dividends or distributing assets
◉ Authorized stock.
Answer: maximum number of shares a company is legally allowed to
issue (most companies will hold back amounts of stock to keep as a
backup)
, ◉ Treasury stock entries.
Answer: When stock is purchased:
debit treasury stock, common; credit cash
When the stock is re-issued:
debit cash, credit treasury stock,common
◉ par value.
Answer: amount assigned per share by the corporation in its charter
◉ No-Par value.
Answer: stock not assigned a value per share by the corporate
charter. its advantage is that it can be issued at any price without the
possibility of a minimum legal capital deficiency
◉ stated value.
Answer: no-par stock to which the directors assign a "stated" value
per share
◉ retained earnings.
Answer: increased by net income (found from income statement)
