ACCT 101 PRINCIPLES OF ACCOUNTING (PDF) | 2026 EXAM
QUESTIONS AND ANSWERS + RATIONALES | STUDY GUIDE |
100% CORRECT
1. According to the Pierce College course description, what is the primary purpose of
ACCT 101?
A) To prepare students for advanced managerial accounting.
B) To provide an introduction to fundamental theories and concepts of accounting with
an emphasis on applications.
C) To teach the use of accounting software for complex corporate structures.
D) To focus exclusively on the preparation of tax returns for individuals.
Correct Answer: B) To provide an introduction to fundamental theories and concepts of
accounting with an emphasis on applications.
Rationale: The Pierce College catalog describes ACCT 101 as a "Survey of Accounting" that
covers "Fundamental theories and concepts of accounting" and "Emphasizes applications of
accounting information to various career programs" . This highlights the practical, foundational
nature of the course.
2. Which of the following topics is listed in the course content for ACCT 101 at Pierce
College?
A) Auditing and Assurance Services.
B) Accounting for Accruals and Deferrals.
C) Corporate Tax Planning.
D) International Financial Reporting Standards (IFRS).
Correct Answer: B) Accounting for Accruals and Deferrals.
Rationale: The course content for Pierce College's ACCT 101 explicitly includes "Accounting
for Accruals and Deferrals" . This is a core accounting concept that deals with the timing of
revenue and expense recognition.
3. What are students expected to be able to do upon successful completion of ACCT 101 at
Pierce College?
A) Analyze, journalize, and post transactions using a double-entry accounting system in a
sole proprietorship.
B) Prepare consolidated financial statements for a multinational corporation.
C) Evaluate the financial health of a company using advanced financial modeling.
D) Conduct a comprehensive audit of a publicly traded company.
Correct Answer: A) Analyze, journalize, and post transactions using a double-entry accounting
system in a sole proprietorship.
,Rationale: The student outcomes for Pierce College's ACCT 101 include the ability to "Analyze,
journalize, and post transactions using a double-entry accounting system in a sole proprietorship"
. This represents a foundational skill in financial accounting.
4. A student is asked to prepare an end-of-period worksheet. According to the Pierce
College course outline, this task aligns with which course outcome?
A) Defining accounting and its role in the business world.
B) Generating end-of-period worksheets and statements.
C) Explaining professional ethics in accounting.
D) Performing basic accounting tasks such as adjusting entries.
Correct Answer: B) Generating end-of-period worksheets and statements.
Rationale: The student outcomes for ACCT 101 at Pierce College specifically state that students
will be able to "Generate end-of-period worksheets and statements" . This is a key part of the
accounting cycle.
5. According to the Edmonds College course description, what is a primary objective of
ACCT 101?
A) To analyze complex financial instruments.
B) To use the rules of the fundamental accounting equation to analyze and explain
accounting information.
C) To prepare financial statements for large, publicly traded corporations.
D) To master advanced managerial accounting techniques.
Correct Answer: B) To use the rules of the fundamental accounting equation to analyze and
explain accounting information.
Rationale: The Edmonds College catalog lists "Use the rules of the fundamental accounting
equation to analyze and explain accounting information" as a primary course objective . This is a
core concept in introductory accounting.
6. Which of the following is a key learning objective for ACCT 101 at Edmonds College?
A) Work independently to apply reasoning skills and critical thinking.
B) Design and implement an internal control system for a global organization.
C) Evaluate the ethical implications of complex financial reporting choices.
D) Perform a statistical analysis of financial data.
Correct Answer: A) Work independently to apply reasoning skills and critical thinking.
Rationale: The Edmonds College ACCT 101 objectives include the requirement to "Work
independently to apply reasoning skills and critical thinking" . This emphasizes the development
of analytical skills.
7. Which of the following is part of the Wizeprep course outline for ACCT 101 at NYIT?
A) Introduction to Auditing.
B) Financial Statement Analysis.
, C) Advanced Cost Accounting.
D) International Taxation.
Correct Answer: B) Financial Statement Analysis.
Rationale: The Wizeprep course outline for ACCT 101 at NYIT lists "Financial Statement
Analysis" as one of the topics covered . This is a common and important element of an
introductory financial accounting course.
8. The Wizeprep outline for ACCT 101 includes a lesson on "Merchandising." According to
standard ACCT 101 curriculum, what does this topic primarily cover?
A) The marketing and sales strategies for retail businesses.
B) Accounting for businesses that buy and sell goods, including inventory and cost of
goods sold.
C) The legal structure of a merchandising corporation.
D) The process of obtaining a business license.
Correct Answer: B) Accounting for businesses that buy and sell goods, including inventory and
cost of goods sold.
Rationale: In the context of introductory accounting, a "Merchandising" section typically covers
the accounting for merchandising operations, including the perpetual and periodic inventory
systems, and the calculation of cost of goods sold .
9. A Chegg study resource for ACCT 101 covers a "Principles of Accounting" exam. Which
of the following topics appears in that exam?
A) Auditing internal controls over financial reporting.
B) Accounting for credit sales, sales allowances, and bad debts.
C) Calculating the cost of equity capital.
D) Preparing a statement of cash flows using the indirect method.
Correct Answer: B) Accounting for credit sales, sales allowances, and bad debts.
Rationale: The Chegg resource shows exam questions on topics like credit sales, sales
allowances, and the allowance for uncollectible accounts . These are standard topics in the
receivables chapter of an introductory accounting textbook.
10. According to the Chegg sample exam question, what is the correct journal entry to record
a credit sale?
A) Debit Cash, credit Revenue.
B) Debit Revenue, credit Accounts Receivable.
C) Debit Cash, credit Deferred Revenue.
D) Debit Accounts Receivable, credit Revenue.
Correct Answer: D) Debit Accounts Receivable, credit Revenue.
Rationale: A credit sale increases the company's accounts receivable (an asset) and increases
revenue. The correct entry is a debit to Accounts Receivable and a credit to Revenue .
QUESTIONS AND ANSWERS + RATIONALES | STUDY GUIDE |
100% CORRECT
1. According to the Pierce College course description, what is the primary purpose of
ACCT 101?
A) To prepare students for advanced managerial accounting.
B) To provide an introduction to fundamental theories and concepts of accounting with
an emphasis on applications.
C) To teach the use of accounting software for complex corporate structures.
D) To focus exclusively on the preparation of tax returns for individuals.
Correct Answer: B) To provide an introduction to fundamental theories and concepts of
accounting with an emphasis on applications.
Rationale: The Pierce College catalog describes ACCT 101 as a "Survey of Accounting" that
covers "Fundamental theories and concepts of accounting" and "Emphasizes applications of
accounting information to various career programs" . This highlights the practical, foundational
nature of the course.
2. Which of the following topics is listed in the course content for ACCT 101 at Pierce
College?
A) Auditing and Assurance Services.
B) Accounting for Accruals and Deferrals.
C) Corporate Tax Planning.
D) International Financial Reporting Standards (IFRS).
Correct Answer: B) Accounting for Accruals and Deferrals.
Rationale: The course content for Pierce College's ACCT 101 explicitly includes "Accounting
for Accruals and Deferrals" . This is a core accounting concept that deals with the timing of
revenue and expense recognition.
3. What are students expected to be able to do upon successful completion of ACCT 101 at
Pierce College?
A) Analyze, journalize, and post transactions using a double-entry accounting system in a
sole proprietorship.
B) Prepare consolidated financial statements for a multinational corporation.
C) Evaluate the financial health of a company using advanced financial modeling.
D) Conduct a comprehensive audit of a publicly traded company.
Correct Answer: A) Analyze, journalize, and post transactions using a double-entry accounting
system in a sole proprietorship.
,Rationale: The student outcomes for Pierce College's ACCT 101 include the ability to "Analyze,
journalize, and post transactions using a double-entry accounting system in a sole proprietorship"
. This represents a foundational skill in financial accounting.
4. A student is asked to prepare an end-of-period worksheet. According to the Pierce
College course outline, this task aligns with which course outcome?
A) Defining accounting and its role in the business world.
B) Generating end-of-period worksheets and statements.
C) Explaining professional ethics in accounting.
D) Performing basic accounting tasks such as adjusting entries.
Correct Answer: B) Generating end-of-period worksheets and statements.
Rationale: The student outcomes for ACCT 101 at Pierce College specifically state that students
will be able to "Generate end-of-period worksheets and statements" . This is a key part of the
accounting cycle.
5. According to the Edmonds College course description, what is a primary objective of
ACCT 101?
A) To analyze complex financial instruments.
B) To use the rules of the fundamental accounting equation to analyze and explain
accounting information.
C) To prepare financial statements for large, publicly traded corporations.
D) To master advanced managerial accounting techniques.
Correct Answer: B) To use the rules of the fundamental accounting equation to analyze and
explain accounting information.
Rationale: The Edmonds College catalog lists "Use the rules of the fundamental accounting
equation to analyze and explain accounting information" as a primary course objective . This is a
core concept in introductory accounting.
6. Which of the following is a key learning objective for ACCT 101 at Edmonds College?
A) Work independently to apply reasoning skills and critical thinking.
B) Design and implement an internal control system for a global organization.
C) Evaluate the ethical implications of complex financial reporting choices.
D) Perform a statistical analysis of financial data.
Correct Answer: A) Work independently to apply reasoning skills and critical thinking.
Rationale: The Edmonds College ACCT 101 objectives include the requirement to "Work
independently to apply reasoning skills and critical thinking" . This emphasizes the development
of analytical skills.
7. Which of the following is part of the Wizeprep course outline for ACCT 101 at NYIT?
A) Introduction to Auditing.
B) Financial Statement Analysis.
, C) Advanced Cost Accounting.
D) International Taxation.
Correct Answer: B) Financial Statement Analysis.
Rationale: The Wizeprep course outline for ACCT 101 at NYIT lists "Financial Statement
Analysis" as one of the topics covered . This is a common and important element of an
introductory financial accounting course.
8. The Wizeprep outline for ACCT 101 includes a lesson on "Merchandising." According to
standard ACCT 101 curriculum, what does this topic primarily cover?
A) The marketing and sales strategies for retail businesses.
B) Accounting for businesses that buy and sell goods, including inventory and cost of
goods sold.
C) The legal structure of a merchandising corporation.
D) The process of obtaining a business license.
Correct Answer: B) Accounting for businesses that buy and sell goods, including inventory and
cost of goods sold.
Rationale: In the context of introductory accounting, a "Merchandising" section typically covers
the accounting for merchandising operations, including the perpetual and periodic inventory
systems, and the calculation of cost of goods sold .
9. A Chegg study resource for ACCT 101 covers a "Principles of Accounting" exam. Which
of the following topics appears in that exam?
A) Auditing internal controls over financial reporting.
B) Accounting for credit sales, sales allowances, and bad debts.
C) Calculating the cost of equity capital.
D) Preparing a statement of cash flows using the indirect method.
Correct Answer: B) Accounting for credit sales, sales allowances, and bad debts.
Rationale: The Chegg resource shows exam questions on topics like credit sales, sales
allowances, and the allowance for uncollectible accounts . These are standard topics in the
receivables chapter of an introductory accounting textbook.
10. According to the Chegg sample exam question, what is the correct journal entry to record
a credit sale?
A) Debit Cash, credit Revenue.
B) Debit Revenue, credit Accounts Receivable.
C) Debit Cash, credit Deferred Revenue.
D) Debit Accounts Receivable, credit Revenue.
Correct Answer: D) Debit Accounts Receivable, credit Revenue.
Rationale: A credit sale increases the company's accounts receivable (an asset) and increases
revenue. The correct entry is a debit to Accounts Receivable and a credit to Revenue .
