CSUF ACCT 201A (HOFFMAN) FINAL
PRACTICE EXAMINATION 2026
QUESTIONS WITH ANSWERS GRADED
A+
◍ The Basic Accounting Equation.
Answer: Assets = Liabilities + Stockholders Equity
◍ Net Income.
Answer: Revenues - Expenses
◍ Retained Earnings.
Answer: Revenues - Expenses - Dividends
◍ Net Cash Flows.
Answer: Operating + Investing + Financing
◍ Generally accepted accounting principles are:.
Answer: a set of standards and rules that are recognized as a general guide
for financial reporting.
◍ Interest.
Answer: Principal x Interest Rate x Fraction of the Year
◍ Which is an advantage of corporations relative to partnerships and sole
proprietorships?.
Answer: Reduced legal liability for investors.
◍ Ending Retained Earnings.
Answer: Beginning Retained Earnings + Revenues - Expenses - Dividends
◍ Kam Company has the following units and costs.Inventory, Jan. 1 8,000
$11Purchase, Jun. 19 13,000 $12Purchase, Nov. 8 5,000 $13If 9,000 units
, are on hand at December 31, what is the cost of the ending inventory under
FIFO?.
Answer: $113,000(total 309,000 - ((8,00011)+(remaining 9,00012))
◍ To record the sale of goods for cash in a perpetual inventory system:.
Answer: two journal entries are necessary: one to record the receipt of cash
and sales revenue, and one to record the cost of goods sold and reduction of
inventory.
◍ Net Sales.
Answer: Total Sales - Sales Discounts - Sales Returns - Sales Allowances
◍ Which is not one of the three primary business activities?.
Answer: Advertising.
◍ Receivables Turnover Ratio.
Answer: Net Credit Sales / Average Accounts Receivable, net
◍ Average Collection Period.
Answer: 365 days / Receivables Turnover Ratio
◍ Total Inventory Available For Sale.
Answer: Beginning Inventory + Purchases
◍ A trial balance:.
Answer: will not balance if a correct journal entry is posted twice.
◍ Gross Profit.
Answer: Net Sales - Cost of Goods Sold
◍ Which accounts normally have debit balances?.
Answer: Assets, dividends, and expenses.
◍ Operating Income.
Answer: Gross Profit - Operating Expenses
◍ Which account will have a zero balance after a company has journalized and
posted closing entries?.
Answer: Service Revenue.
, ◍ Income Before Income Taxes.
Answer: Operating Income + Non-Operating Revenues - Non-Operating
Expenses
◍ Gross Profit Ratio.
Answer: Gross Profit / Net Sales
◍ Adjustments for prepaid expenses:.
Answer: decrease assets and increase expenses.
◍ Weighted-Average Cost.
Answer: Cost of Goods Available For Sale / Number of Units Available For
Sale
◍ LIFO Adjustment.
Answer: FIFO Ending Inventory - LIFO Ending Inventory
◍ Queenan Company computes depreciation on delivery equipment at $1,000
for the month of June. The adjusting entry to record this depreciation is as
follows:.
Answer: Depreciation Expense dr 1,000. Accumulated
Depreciation-Equipment cr 1,000
◍ A ledger:.
Answer: is a record of all accounts maintained by a company and their
amounts.
◍ Net income will result during a time period when:.
Answer: revenues exceed expenses.
◍ Inventory Turnover Ratio.
Answer: Cost of Goods Sold / Inventory
◍ Davidson Electronics has the following: Inventory, Jan. 1 5,000 $8Purchase,
April 2 15,000 $10Purchase, Aug. 28 20,000 $12If Davidson has 7,000 units
on hand at December 31, the cost of ending inventory under the
average-cost method is:.
Answer: $75,25040,000+ 150,000+ 240,000 = 430,00040,000
PRACTICE EXAMINATION 2026
QUESTIONS WITH ANSWERS GRADED
A+
◍ The Basic Accounting Equation.
Answer: Assets = Liabilities + Stockholders Equity
◍ Net Income.
Answer: Revenues - Expenses
◍ Retained Earnings.
Answer: Revenues - Expenses - Dividends
◍ Net Cash Flows.
Answer: Operating + Investing + Financing
◍ Generally accepted accounting principles are:.
Answer: a set of standards and rules that are recognized as a general guide
for financial reporting.
◍ Interest.
Answer: Principal x Interest Rate x Fraction of the Year
◍ Which is an advantage of corporations relative to partnerships and sole
proprietorships?.
Answer: Reduced legal liability for investors.
◍ Ending Retained Earnings.
Answer: Beginning Retained Earnings + Revenues - Expenses - Dividends
◍ Kam Company has the following units and costs.Inventory, Jan. 1 8,000
$11Purchase, Jun. 19 13,000 $12Purchase, Nov. 8 5,000 $13If 9,000 units
, are on hand at December 31, what is the cost of the ending inventory under
FIFO?.
Answer: $113,000(total 309,000 - ((8,00011)+(remaining 9,00012))
◍ To record the sale of goods for cash in a perpetual inventory system:.
Answer: two journal entries are necessary: one to record the receipt of cash
and sales revenue, and one to record the cost of goods sold and reduction of
inventory.
◍ Net Sales.
Answer: Total Sales - Sales Discounts - Sales Returns - Sales Allowances
◍ Which is not one of the three primary business activities?.
Answer: Advertising.
◍ Receivables Turnover Ratio.
Answer: Net Credit Sales / Average Accounts Receivable, net
◍ Average Collection Period.
Answer: 365 days / Receivables Turnover Ratio
◍ Total Inventory Available For Sale.
Answer: Beginning Inventory + Purchases
◍ A trial balance:.
Answer: will not balance if a correct journal entry is posted twice.
◍ Gross Profit.
Answer: Net Sales - Cost of Goods Sold
◍ Which accounts normally have debit balances?.
Answer: Assets, dividends, and expenses.
◍ Operating Income.
Answer: Gross Profit - Operating Expenses
◍ Which account will have a zero balance after a company has journalized and
posted closing entries?.
Answer: Service Revenue.
, ◍ Income Before Income Taxes.
Answer: Operating Income + Non-Operating Revenues - Non-Operating
Expenses
◍ Gross Profit Ratio.
Answer: Gross Profit / Net Sales
◍ Adjustments for prepaid expenses:.
Answer: decrease assets and increase expenses.
◍ Weighted-Average Cost.
Answer: Cost of Goods Available For Sale / Number of Units Available For
Sale
◍ LIFO Adjustment.
Answer: FIFO Ending Inventory - LIFO Ending Inventory
◍ Queenan Company computes depreciation on delivery equipment at $1,000
for the month of June. The adjusting entry to record this depreciation is as
follows:.
Answer: Depreciation Expense dr 1,000. Accumulated
Depreciation-Equipment cr 1,000
◍ A ledger:.
Answer: is a record of all accounts maintained by a company and their
amounts.
◍ Net income will result during a time period when:.
Answer: revenues exceed expenses.
◍ Inventory Turnover Ratio.
Answer: Cost of Goods Sold / Inventory
◍ Davidson Electronics has the following: Inventory, Jan. 1 5,000 $8Purchase,
April 2 15,000 $10Purchase, Aug. 28 20,000 $12If Davidson has 7,000 units
on hand at December 31, the cost of ending inventory under the
average-cost method is:.
Answer: $75,25040,000+ 150,000+ 240,000 = 430,00040,000
