ACC 221 LATEST EXAMS EVALUATION 2026
QUESTIONS AND ANSWERS SURE A+
✔✔Trial Balance - ✔✔Used by accountants to prove that total debits equal total credits.
✔✔General Ledger - ✔✔A collection of all accounts in the accounting system.
✔✔General Journal - ✔✔Records entries of transactions in the accounting system.
✔✔Posting - ✔✔The process of transferring entries from the General Journal to the
accounts.
✔✔Issue Common Stock (Journal Entry) - ✔✔Dr-Cash, Cr-Common Stock.
✔✔Loan From Bank (Journal Entry) - ✔✔Dr-Cash, Cr-Note Payable.
✔✔Purchase of Equipment (Journal Entry) - ✔✔Dr-Equipment, Cr-Cash.
✔✔Purchase of Inventory (Journal Entry) - ✔✔Dr-Inventory, Cr-Cash.
✔✔Preparing a Balance Sheet - ✔✔Gives a snapshot of a company at one point in
time.
, ✔✔Period of Time Assumption - ✔✔The time period in which the accounting cycle
occurs.
✔✔The Accounting Cycle - ✔✔The collective process of recording and processing
accounting events.
✔✔Entity Assumption - ✔✔Only transactions related to the entity are recorded.
✔✔Accounting Entity - ✔✔A clearly defined economic unit that engages in identifiable
economic activities.
✔✔Monetary Unit Assumption - ✔✔Only transactions that can be stated in monetary
terms are recorded.
✔✔Going Concern Assumption - ✔✔Assumes that the company will continue to operate
indefinitely.
✔✔Cost Principle - ✔✔Transactions are recorded at cost.
✔✔Key Aspect of the Retained Earnings Account - ✔✔Adjusted with every journal entry
made to income or expense accounts.
✔✔Interest Payable - ✔✔Interest owed to the bank as of the balance sheet date.
✔✔Recording Transactions in Revenue and Expense Accounts - ✔✔Debits in expense
accounts and credits in revenue accounts reset balances to zero.
✔✔Sales Revenue Account - ✔✔A revenue account with a normal credit balance that
increases cash.
✔✔Recording a Sale in a Merchandising Company (Journal Entry) - ✔✔Dr-Accounts
Receivable, Cr-Sales Revenue.
✔✔Types of Expense Accounts - ✔✔Includes rent, wage, interest, operating, supplies,
depreciation, and cost of goods sold.
✔✔Expense Account - ✔✔Normal debit balance; a debit increases the account and
decreases retained earnings.
✔✔Preparing an Income Statement - ✔✔Uses all ending balances in revenue and
expense accounts to state gross profit and net income.
✔✔Gross Profit Equation - ✔✔Sales Revenue minus Cost of Goods Sold.
QUESTIONS AND ANSWERS SURE A+
✔✔Trial Balance - ✔✔Used by accountants to prove that total debits equal total credits.
✔✔General Ledger - ✔✔A collection of all accounts in the accounting system.
✔✔General Journal - ✔✔Records entries of transactions in the accounting system.
✔✔Posting - ✔✔The process of transferring entries from the General Journal to the
accounts.
✔✔Issue Common Stock (Journal Entry) - ✔✔Dr-Cash, Cr-Common Stock.
✔✔Loan From Bank (Journal Entry) - ✔✔Dr-Cash, Cr-Note Payable.
✔✔Purchase of Equipment (Journal Entry) - ✔✔Dr-Equipment, Cr-Cash.
✔✔Purchase of Inventory (Journal Entry) - ✔✔Dr-Inventory, Cr-Cash.
✔✔Preparing a Balance Sheet - ✔✔Gives a snapshot of a company at one point in
time.
, ✔✔Period of Time Assumption - ✔✔The time period in which the accounting cycle
occurs.
✔✔The Accounting Cycle - ✔✔The collective process of recording and processing
accounting events.
✔✔Entity Assumption - ✔✔Only transactions related to the entity are recorded.
✔✔Accounting Entity - ✔✔A clearly defined economic unit that engages in identifiable
economic activities.
✔✔Monetary Unit Assumption - ✔✔Only transactions that can be stated in monetary
terms are recorded.
✔✔Going Concern Assumption - ✔✔Assumes that the company will continue to operate
indefinitely.
✔✔Cost Principle - ✔✔Transactions are recorded at cost.
✔✔Key Aspect of the Retained Earnings Account - ✔✔Adjusted with every journal entry
made to income or expense accounts.
✔✔Interest Payable - ✔✔Interest owed to the bank as of the balance sheet date.
✔✔Recording Transactions in Revenue and Expense Accounts - ✔✔Debits in expense
accounts and credits in revenue accounts reset balances to zero.
✔✔Sales Revenue Account - ✔✔A revenue account with a normal credit balance that
increases cash.
✔✔Recording a Sale in a Merchandising Company (Journal Entry) - ✔✔Dr-Accounts
Receivable, Cr-Sales Revenue.
✔✔Types of Expense Accounts - ✔✔Includes rent, wage, interest, operating, supplies,
depreciation, and cost of goods sold.
✔✔Expense Account - ✔✔Normal debit balance; a debit increases the account and
decreases retained earnings.
✔✔Preparing an Income Statement - ✔✔Uses all ending balances in revenue and
expense accounts to state gross profit and net income.
✔✔Gross Profit Equation - ✔✔Sales Revenue minus Cost of Goods Sold.
