ACC 101: INTRODUCTION TO FINANCIAL ACCOUNTING
Final Exam Practice Questions
PRINCIPLES OF FINANCIAL ACCOUNTING
This exam evaluates students’ knowledge and ability to record business transactions, summarize these
transactions, and prepare, interpret, and use financial statements. This exam covers the accounting cycle,
merchandising concerns, and financial assets. It also assesses students’ knowledge of plant assets,
liabilities, and stockholders’ equity. (3 credits)
● Test format: 100 multiple choice questions (1 point each)
● Passing score: 60%. Your grade will be reported as CR (credit) or NC (no credit).
● Time limit: 2 hours
You may use a financial, scientific, or graphing calculator while testing. You may NOT use a
calculator that is on your cell phone, PDA, or any similar device.
OUTCOMES ASSESSED ON THE TEST
● Describe the need for accounting
● Identify users of financial accounting information
● Prepare and interpret the components of a transaction, the related debit/credit theory, and how
the general journal and general ledger relate to the accounting process and to financial
statements
● Prepare basic financial statements: income statement, statement of owners' equity, balance sheet
● Demonstrate the steps and related transactions in the accounting cycle, including the adjusting
process and the closing process
● Prepare the accounting and related transactions for: merchandising businesses, various inventory
accounting methods, purchase and depreciation/amortization of plant assets and intangible
assets, long-term liabilities, and stockholders' equity accounts
amurimi
1
, TOPICS ON THE TEST AND THEIR APPROXIMATE DISTRIBUTION
The table below indicates the main topics covered by this exam and the approximate percentage of the
exam devoted to each main topic. Under the main topic heading is a list of related–but more
specific–topics. It is important to review these topics to determine how much prior knowledge you have
and/or how much additional study is necessary.
Basic Financial Statements (15%)
Topic
Financial accounting as the language of business
Internal and external elements used to create integrity in reported financial information
How business transactions affect the accounting equation (Assets = Liabilities + Owner’s Equity)
Nature and purpose of financial statements (income statements, balance sheets, statement of cash
flows)
Accounting principles required to understand financial statements and relationships among financial
statements
The Accounting Cycle (30%)
Topic
Theory of debits and credits
Accounting cycle from journal entry to financial statements
Revenue realization; matching and materiality principles
Adjusting and closing entries
Characteristics of sole proprietorships, partnerships, corporations
Journal entries for partnerships-investments; withdrawals; division of net income
2
Final Exam Practice Questions
PRINCIPLES OF FINANCIAL ACCOUNTING
This exam evaluates students’ knowledge and ability to record business transactions, summarize these
transactions, and prepare, interpret, and use financial statements. This exam covers the accounting cycle,
merchandising concerns, and financial assets. It also assesses students’ knowledge of plant assets,
liabilities, and stockholders’ equity. (3 credits)
● Test format: 100 multiple choice questions (1 point each)
● Passing score: 60%. Your grade will be reported as CR (credit) or NC (no credit).
● Time limit: 2 hours
You may use a financial, scientific, or graphing calculator while testing. You may NOT use a
calculator that is on your cell phone, PDA, or any similar device.
OUTCOMES ASSESSED ON THE TEST
● Describe the need for accounting
● Identify users of financial accounting information
● Prepare and interpret the components of a transaction, the related debit/credit theory, and how
the general journal and general ledger relate to the accounting process and to financial
statements
● Prepare basic financial statements: income statement, statement of owners' equity, balance sheet
● Demonstrate the steps and related transactions in the accounting cycle, including the adjusting
process and the closing process
● Prepare the accounting and related transactions for: merchandising businesses, various inventory
accounting methods, purchase and depreciation/amortization of plant assets and intangible
assets, long-term liabilities, and stockholders' equity accounts
amurimi
1
, TOPICS ON THE TEST AND THEIR APPROXIMATE DISTRIBUTION
The table below indicates the main topics covered by this exam and the approximate percentage of the
exam devoted to each main topic. Under the main topic heading is a list of related–but more
specific–topics. It is important to review these topics to determine how much prior knowledge you have
and/or how much additional study is necessary.
Basic Financial Statements (15%)
Topic
Financial accounting as the language of business
Internal and external elements used to create integrity in reported financial information
How business transactions affect the accounting equation (Assets = Liabilities + Owner’s Equity)
Nature and purpose of financial statements (income statements, balance sheets, statement of cash
flows)
Accounting principles required to understand financial statements and relationships among financial
statements
The Accounting Cycle (30%)
Topic
Theory of debits and credits
Accounting cycle from journal entry to financial statements
Revenue realization; matching and materiality principles
Adjusting and closing entries
Characteristics of sole proprietorships, partnerships, corporations
Journal entries for partnerships-investments; withdrawals; division of net income
2
