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CSUF ACCT 201A (Hoffman) Final Exam
Questions and Correct Answers/ Latest
Update / Already Graded
Generally accepted accounting principles are:
Ans: 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?
Ans: 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?
Ans: $113,000
(total 309,000 - ((8,000*11)+(remaining 9,000*12))
All rights reserved © 2025/ 2026 |
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To record the sale of goods for cash in a perpetual inventory system:
Ans: 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?
Ans: Advertising.
A trial balance:
Ans: will not balance if a correct journal entry is posted twice.
Which accounts normally have debit balances?
Ans: Assets, dividends, and expenses.
Which account will have a zero balance after a company has
journalized and posted closing entries?
Ans: Service Revenue.
Adjustments for prepaid expenses:
Ans: decrease assets and increase expenses.
All rights reserved © 2025/ 2026 |
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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:
Ans: Depreciation Expense dr 1,000. Accumulated
Depreciation-Equipment cr 1,000
A ledger:
Ans: is a record of all accounts maintained by a company and
their amounts.
Net income will result during a time period when:
Ans: 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:
Ans: $75,250
All rights reserved © 2025/ 2026 |
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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:
Ans: notes to the financial statements.
Gross profit will result if:
Ans: 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.
Ans: $215,000
(180,000+ 35,000)
All rights reserved © 2025/ 2026 |
CSUF ACCT 201A (Hoffman) Final Exam
Questions and Correct Answers/ Latest
Update / Already Graded
Generally accepted accounting principles are:
Ans: 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?
Ans: 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?
Ans: $113,000
(total 309,000 - ((8,000*11)+(remaining 9,000*12))
All rights reserved © 2025/ 2026 |
, Page |2
To record the sale of goods for cash in a perpetual inventory system:
Ans: 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?
Ans: Advertising.
A trial balance:
Ans: will not balance if a correct journal entry is posted twice.
Which accounts normally have debit balances?
Ans: Assets, dividends, and expenses.
Which account will have a zero balance after a company has
journalized and posted closing entries?
Ans: Service Revenue.
Adjustments for prepaid expenses:
Ans: decrease assets and increase expenses.
All rights reserved © 2025/ 2026 |
, Page |3
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:
Ans: Depreciation Expense dr 1,000. Accumulated
Depreciation-Equipment cr 1,000
A ledger:
Ans: is a record of all accounts maintained by a company and
their amounts.
Net income will result during a time period when:
Ans: 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:
Ans: $75,250
All rights reserved © 2025/ 2026 |
, Page |4
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:
Ans: notes to the financial statements.
Gross profit will result if:
Ans: 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.
Ans: $215,000
(180,000+ 35,000)
All rights reserved © 2025/ 2026 |
