ACC 101 Exam questions and
answers graded A+
Which of the following does not occur during the closing process? - ANS✅✅Journal entries are
made to return the balance in all real accounts to zero.
The purchase of office equipment on credit has what effect on the accounting equation? -
ANS✅✅Assets increase and liabilities increase
Research and development costs are - ANS✅✅treated as an expense when incurred.
Which one of the following is a correct expression of the accounting equation? - ANS✅✅Assets =
Liabilities + Owners' Equity
Indicate on which statement each account would appear. - ANS✅✅Equipment
Common Stock
Accounts Payable
Service Revenue
Salary Expense
Which of the following items would be considered a cash equivalent if it was held at the balance
sheet date? - ANS✅✅U.S. Treasury bill purchased when there were 90 days until maturity.
During a period of increasing cost prices, which inventory costing method will yield the lowest cost
of goods sold? - ANS✅✅FIFO
Which of the following is an account in stockholders' equity? - ANS✅✅Retained earnings
When using the Indirect Method, how is the purchase of equipment for cash shown on the
Statement of Cash Flows? - ANS✅✅Investing activity?
Which one of the following is an accurate description of Allowance for Doubtful Accounts? -
ANS✅✅Contra Account
answers graded A+
Which of the following does not occur during the closing process? - ANS✅✅Journal entries are
made to return the balance in all real accounts to zero.
The purchase of office equipment on credit has what effect on the accounting equation? -
ANS✅✅Assets increase and liabilities increase
Research and development costs are - ANS✅✅treated as an expense when incurred.
Which one of the following is a correct expression of the accounting equation? - ANS✅✅Assets =
Liabilities + Owners' Equity
Indicate on which statement each account would appear. - ANS✅✅Equipment
Common Stock
Accounts Payable
Service Revenue
Salary Expense
Which of the following items would be considered a cash equivalent if it was held at the balance
sheet date? - ANS✅✅U.S. Treasury bill purchased when there were 90 days until maturity.
During a period of increasing cost prices, which inventory costing method will yield the lowest cost
of goods sold? - ANS✅✅FIFO
Which of the following is an account in stockholders' equity? - ANS✅✅Retained earnings
When using the Indirect Method, how is the purchase of equipment for cash shown on the
Statement of Cash Flows? - ANS✅✅Investing activity?
Which one of the following is an accurate description of Allowance for Doubtful Accounts? -
ANS✅✅Contra Account
