ACC 200 FINAL EXAM QUESTIONS WITH VERIFIED
ANSWERS
What is the basis for the statement of cash flows under the direct method? - Answers -
cash T-account
What account is Salary Expense closed to? - Answers - Income Summary (where you
close all your expense accounts)
The statement which presents the financial picture of a company as of a specific date is
the: - Answers - Balance Sheet
The double-entry bookkeeping system requires that all transactions possess: - Answers
- debit entries balanced with credit entries
Payment if twelve month's insurance in advance would result in what entry? - Answers -
debit to prepaid insurance (credit cash)
The cash payment of an expense requires: - Answers - a credit entry to Cash
Adjusting entries are necessary in order to: - Answers - 1. measure properly the periods
income
2. bring asset accounts to correct balances
3. bring liability accounts to correct balances
Accrued revenue adjusting entries are required when: - Answers - cash is received after
the revenue (cash comes after the fact)
Where would you find Unearned Revenue? - Answers - the liability section of the
balance sheet
What accounts can be seen as temporary accounts? - Answers - 1. Revenues
2. Expenses
3. Dividends
(all closed to Income Summary)
What are claims against a company's assets? - Answers - Liabilities
What are residual claims against a company's assets? - Answers - Owners Equity
What is lifetime net income less dividends? - Answers - Retained Earnings
What is the outflow of assets needed to provide goods and services to customers? -
Answers - Expenses
ANSWERS
What is the basis for the statement of cash flows under the direct method? - Answers -
cash T-account
What account is Salary Expense closed to? - Answers - Income Summary (where you
close all your expense accounts)
The statement which presents the financial picture of a company as of a specific date is
the: - Answers - Balance Sheet
The double-entry bookkeeping system requires that all transactions possess: - Answers
- debit entries balanced with credit entries
Payment if twelve month's insurance in advance would result in what entry? - Answers -
debit to prepaid insurance (credit cash)
The cash payment of an expense requires: - Answers - a credit entry to Cash
Adjusting entries are necessary in order to: - Answers - 1. measure properly the periods
income
2. bring asset accounts to correct balances
3. bring liability accounts to correct balances
Accrued revenue adjusting entries are required when: - Answers - cash is received after
the revenue (cash comes after the fact)
Where would you find Unearned Revenue? - Answers - the liability section of the
balance sheet
What accounts can be seen as temporary accounts? - Answers - 1. Revenues
2. Expenses
3. Dividends
(all closed to Income Summary)
What are claims against a company's assets? - Answers - Liabilities
What are residual claims against a company's assets? - Answers - Owners Equity
What is lifetime net income less dividends? - Answers - Retained Earnings
What is the outflow of assets needed to provide goods and services to customers? -
Answers - Expenses
