ACCT 201A Solved Exam Questions and
Answers (Complete Practice Papers)
A company has purchased a tract of land. It expects to build a
production plant on the land in approximately 5 years. During
the 5 years before construction, the land will be idle. The land
should be reported as:
- property, plant, and equipment.
- land expense.
- a long-term investment.
- an intangible asset. - Correct Answers ✅a long-term
investment.
A company makes a credit sale of $750 on June 13, terms
2/10, n/30, on which it grants a return of $50 on June 16.
What amount is received as payment in full on June 23?
-$700.
-$686.
-$685.
-$650 - Correct Answers ✅($750-$50) *2% =
$686.
Adjusting entries are made to ensure that:
- expenses are recognized in the period in which they are
incurred.
- revenues are recorded in the period in which the
performance obligation is satisfied.
,ACCT 201A Solved Exam Questions and
Answers (Complete Practice Papers)
- balance sheet and income statement accounts have correct
balances at the end of an accounting period.
- All of the above. - Correct Answers ✅All of the above.
Adjustments for accrued revenues:
- increase assets and increase liabilities.
- increase assets and increase revenues.
- decrease assets and decrease revenues.
- decrease liabilities and increase revenues. - Correct
Answers ✅increase assets and increase revenues.
Adjustments for prepaid expenses:
- decrease assets and increase revenues.
- decrease expenses and increase assets.
- decrease assets and increase expenses.
- decrease revenues and increase assets. - Correct Answers
✅decrease assets and increase expenses.
Adjustments for unearned revenues:
- decrease liabilities and increase revenues.
- increase liabilities and increase revenues.
- increase assets and increase revenues.
- decrease revenues and decrease assets. - Correct
Answers ✅decrease liabilities and increase revenues.
, ACCT 201A Solved Exam Questions and
Answers (Complete Practice Papers)
A ledger:
- contains only asset and liability accounts.
- should show accounts in alphabetical order.
- is a record of all accounts maintained by a company and
their amounts.
- provides a chronological record of transactions. - Correct
Answers ✅is a record of all accounts maintained by a
company and their amounts.
All of the following are required steps in the accounting cycle
except:
- journalizing and posting closing entries.
- preparing an adjusted trial balance.
- preparing a post-closing trial balance.
- prepare financial statements from the unadjusted trial
balance. - Correct Answers ✅prepare financial statements
from the unadjusted trial balance.
A revenue account:
- is increased by debits.
- is decreased by credits.
- has a normal balance of a debit.
- is increased by credits. - Correct Answers ✅is increased
by credits.
Answers (Complete Practice Papers)
A company has purchased a tract of land. It expects to build a
production plant on the land in approximately 5 years. During
the 5 years before construction, the land will be idle. The land
should be reported as:
- property, plant, and equipment.
- land expense.
- a long-term investment.
- an intangible asset. - Correct Answers ✅a long-term
investment.
A company makes a credit sale of $750 on June 13, terms
2/10, n/30, on which it grants a return of $50 on June 16.
What amount is received as payment in full on June 23?
-$700.
-$686.
-$685.
-$650 - Correct Answers ✅($750-$50) *2% =
$686.
Adjusting entries are made to ensure that:
- expenses are recognized in the period in which they are
incurred.
- revenues are recorded in the period in which the
performance obligation is satisfied.
,ACCT 201A Solved Exam Questions and
Answers (Complete Practice Papers)
- balance sheet and income statement accounts have correct
balances at the end of an accounting period.
- All of the above. - Correct Answers ✅All of the above.
Adjustments for accrued revenues:
- increase assets and increase liabilities.
- increase assets and increase revenues.
- decrease assets and decrease revenues.
- decrease liabilities and increase revenues. - Correct
Answers ✅increase assets and increase revenues.
Adjustments for prepaid expenses:
- decrease assets and increase revenues.
- decrease expenses and increase assets.
- decrease assets and increase expenses.
- decrease revenues and increase assets. - Correct Answers
✅decrease assets and increase expenses.
Adjustments for unearned revenues:
- decrease liabilities and increase revenues.
- increase liabilities and increase revenues.
- increase assets and increase revenues.
- decrease revenues and decrease assets. - Correct
Answers ✅decrease liabilities and increase revenues.
, ACCT 201A Solved Exam Questions and
Answers (Complete Practice Papers)
A ledger:
- contains only asset and liability accounts.
- should show accounts in alphabetical order.
- is a record of all accounts maintained by a company and
their amounts.
- provides a chronological record of transactions. - Correct
Answers ✅is a record of all accounts maintained by a
company and their amounts.
All of the following are required steps in the accounting cycle
except:
- journalizing and posting closing entries.
- preparing an adjusted trial balance.
- preparing a post-closing trial balance.
- prepare financial statements from the unadjusted trial
balance. - Correct Answers ✅prepare financial statements
from the unadjusted trial balance.
A revenue account:
- is increased by debits.
- is decreased by credits.
- has a normal balance of a debit.
- is increased by credits. - Correct Answers ✅is increased
by credits.
