CBAD 201 Final Exam questions with
complete verified solutions (2025-2026)
Under accrual accounting, the event that triggers revenue
recognition for the sale of goods is the:
a. date the customer pays for the goods
b. date a contract is signed
c. delivery of goods to customer
d. date the customer orders the goods --- correct precise answer
---c. delivery of goods to customer
The adjustment for an accrued revenue:
a. decreases a receivable account
b. is necessary because a business often earns revenue before
they receive the cash
c. increases a payable account
d. is necessary because a business often receives cash before it
performs the service --- correct precise answer ---b. is necessary
,because a business often earns revenue before they receive the
cash
________ will be increased when a company receives cash before
performing the services.
a. Accumulated Depreciation
b. Accrued Salaries Payable
c. Unearned Service Revenue
d. Service Revenue --- correct precise answer ---c. Unearned
Service Revenue
On August 1, 2018, Brian Quinn received $8400 for legal services
to be performed evenly throughout the next twelve months,
beginning August 1, 2018. An adjusted trial balance prepared on
December 31, 2018 will show a credit balance in Unearned
Revenue in the amount of:
a. $700
b. $4900
c. $3500
,d. $0. --- correct precise answer ---b. $4900
On December 1 of the current year, Prepaid Rent was debited
$6000 for three months of rent, to cover the period December 1
to February 28. The amount of the adjusting entry on December
31 is:
a. $6000
b. $2000
c. $0
d. $4000 --- correct precise answer ---b. $2000
The beginning retained earnings balance is found on the:
a. both the statement of retained earnings and the balance sheet
b. income statement
c. balance sheet
d. statement of retained earnings --- correct precise answer ---d.
statement of retained earnings
, The three main components of the fraud triangle are:
a. None of these
b. rationalization, opportunity and greed
c. opportunity, motive and lack of ethics
d. motive, opportunity and rationalization --- correct precise
answer ---d. motive, opportunity and rationalization
Internal control procedures do NOT include:
a. adequate records
b. limited access
c. smart hiring practices
d. control environment --- correct precise answer ---d. control
environment
Fraudulent financial reporting is also called:
a. a misappropriation of assets
complete verified solutions (2025-2026)
Under accrual accounting, the event that triggers revenue
recognition for the sale of goods is the:
a. date the customer pays for the goods
b. date a contract is signed
c. delivery of goods to customer
d. date the customer orders the goods --- correct precise answer
---c. delivery of goods to customer
The adjustment for an accrued revenue:
a. decreases a receivable account
b. is necessary because a business often earns revenue before
they receive the cash
c. increases a payable account
d. is necessary because a business often receives cash before it
performs the service --- correct precise answer ---b. is necessary
,because a business often earns revenue before they receive the
cash
________ will be increased when a company receives cash before
performing the services.
a. Accumulated Depreciation
b. Accrued Salaries Payable
c. Unearned Service Revenue
d. Service Revenue --- correct precise answer ---c. Unearned
Service Revenue
On August 1, 2018, Brian Quinn received $8400 for legal services
to be performed evenly throughout the next twelve months,
beginning August 1, 2018. An adjusted trial balance prepared on
December 31, 2018 will show a credit balance in Unearned
Revenue in the amount of:
a. $700
b. $4900
c. $3500
,d. $0. --- correct precise answer ---b. $4900
On December 1 of the current year, Prepaid Rent was debited
$6000 for three months of rent, to cover the period December 1
to February 28. The amount of the adjusting entry on December
31 is:
a. $6000
b. $2000
c. $0
d. $4000 --- correct precise answer ---b. $2000
The beginning retained earnings balance is found on the:
a. both the statement of retained earnings and the balance sheet
b. income statement
c. balance sheet
d. statement of retained earnings --- correct precise answer ---d.
statement of retained earnings
, The three main components of the fraud triangle are:
a. None of these
b. rationalization, opportunity and greed
c. opportunity, motive and lack of ethics
d. motive, opportunity and rationalization --- correct precise
answer ---d. motive, opportunity and rationalization
Internal control procedures do NOT include:
a. adequate records
b. limited access
c. smart hiring practices
d. control environment --- correct precise answer ---d. control
environment
Fraudulent financial reporting is also called:
a. a misappropriation of assets
