CSUF ACCT 201A (Hoffman) Final Exam
Questions with Correct Answers 2026-
2027 Edition.
Generally accepted accounting principles are: - Answer a set of standards and rules that are
recognized as a general guide for financial reporting.
Which is an advantage of corporations relative to partnerships and sole proprietorships? -
Answer Reduced legal liability for investors.
Kam Company has the following units and costs.
Inventory, Jan. 1 8,000 $11
Purchase, Jun. 19 13,000 $12
Purchase, Nov. 8 5,000 $13
If 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 - ((8,000*11)+(remaining 9,000*12))
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.
Which is not one of the three primary business activities? - Answer Advertising.
A trial balance: - Answer will not balance if a correct journal entry is posted twice.
Which accounts normally have debit balances? - Answer Assets, dividends, and expenses.
Which account will have a zero balance after a company has journalized and posted closing
entries? - Answer Service Revenue.
Adjustments for prepaid expenses: - Answer decrease assets and increase expenses.
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.
Davidson Electronics has the following:
Inventory, Jan. 1 5,000 $8
Purchase, April 2 15,000 $10
Purchase, Aug. 28 20,000 $12
If Davidson has 7,000 units on hand at December 31, the cost of ending inventory under the
average-cost method is: - Answer $75,250
40,000+ 150,000+ 240,000 = 430,000
40,000 units
430,000/40,000 = 10.75
10.75 * 7,000
The element of a corporation's annual report that describes the corporation's accounting
methods is: - Answer notes to the financial statements.
Gross profit will result if: - Answer net sales are greater than cost of goods sold.
As a result of a thorough physical inventory, Railway Company determined that it had inventory
worth $180,000 at December 31, 2022. This count did not take into consideration the following
facts. Rogers Consignment Store currently has goods worth $35,000 on its sales floor that
belong to Railway but are being sold on consignment by Rogers. The selling price of these goods
is $50,000. Railway purchased $13,000 of goods that were shipped on December 27, FOB
destination, that will be received by Railway on January 3. Determine the correct amount of
inventory that Railway should report. - Answer $215,000
(180,000+ 35,000)
The lower-of-cost-or-net realizable value rule for inventory is an example of the application of: -
Answer the conservatism convention.
All of the following are required steps in the accounting cycle except: - Answer prepare
financial statements from the unadjusted trial balance.
Which statement presents information as of a specific point in time? - Answer Balance sheet.
The following ratios are available for Reilly Inc. and O'Hare Inc.
Questions with Correct Answers 2026-
2027 Edition.
Generally accepted accounting principles are: - Answer a set of standards and rules that are
recognized as a general guide for financial reporting.
Which is an advantage of corporations relative to partnerships and sole proprietorships? -
Answer Reduced legal liability for investors.
Kam Company has the following units and costs.
Inventory, Jan. 1 8,000 $11
Purchase, Jun. 19 13,000 $12
Purchase, Nov. 8 5,000 $13
If 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 - ((8,000*11)+(remaining 9,000*12))
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.
Which is not one of the three primary business activities? - Answer Advertising.
A trial balance: - Answer will not balance if a correct journal entry is posted twice.
Which accounts normally have debit balances? - Answer Assets, dividends, and expenses.
Which account will have a zero balance after a company has journalized and posted closing
entries? - Answer Service Revenue.
Adjustments for prepaid expenses: - Answer decrease assets and increase expenses.
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.
Davidson Electronics has the following:
Inventory, Jan. 1 5,000 $8
Purchase, April 2 15,000 $10
Purchase, Aug. 28 20,000 $12
If Davidson has 7,000 units on hand at December 31, the cost of ending inventory under the
average-cost method is: - Answer $75,250
40,000+ 150,000+ 240,000 = 430,000
40,000 units
430,000/40,000 = 10.75
10.75 * 7,000
The element of a corporation's annual report that describes the corporation's accounting
methods is: - Answer notes to the financial statements.
Gross profit will result if: - Answer net sales are greater than cost of goods sold.
As a result of a thorough physical inventory, Railway Company determined that it had inventory
worth $180,000 at December 31, 2022. This count did not take into consideration the following
facts. Rogers Consignment Store currently has goods worth $35,000 on its sales floor that
belong to Railway but are being sold on consignment by Rogers. The selling price of these goods
is $50,000. Railway purchased $13,000 of goods that were shipped on December 27, FOB
destination, that will be received by Railway on January 3. Determine the correct amount of
inventory that Railway should report. - Answer $215,000
(180,000+ 35,000)
The lower-of-cost-or-net realizable value rule for inventory is an example of the application of: -
Answer the conservatism convention.
All of the following are required steps in the accounting cycle except: - Answer prepare
financial statements from the unadjusted trial balance.
Which statement presents information as of a specific point in time? - Answer Balance sheet.
The following ratios are available for Reilly Inc. and O'Hare Inc.
