ACCT 3110 ENTRANCE EXAM 2025 QUESTIONS WITH
100% CORRECT ANSWERS.
The primary objective of financial reporting is to provide financial information
about the reporting company that is useful Answer - To existing and potential
investors, lenders, and other creditors in making decision about providing
resources to the company.
Generally Accepted Accounting Principles(GAAP) are established by: Answer -
The financial Accounting Standards board
Changes in Stockholders' equity that result from the company's primary and
usual business operations are: Answer - Revenues and Expenses
Which of the following terms describe probably future economic benefits
obtained or controlled by a particular company as a result of past transactions
or events? Answer - Asset
ABC corporation issues 1,000 shares of $10 par value common stock at $12 per
share. In recording the transaction, credits are made to: Answer - Common
Stock $10,000 and Paid-in Capital in Excess of Par Value $2,000
The financial effect of a business transaction is initially recorded with: Answer -
A journal Entry
Which of the following descriptions about accrue basis accounting is
INCORRECT? Answer - Under accrual basis accounting, revenue is recognized
when cash is received
, After transactions are recorded in the general journal, the usual next step in
the accounting cycle is to: Answer - Post transactions to the general ledger
where an unadjusted trial balance can be prepared
The usual final step in the accounting cycle is to: Answer - Prepare a post-
closing trial balance for the next accounting period
Arnold Company provided services to its customers on credit for $25,000. For
Arnold Company, this transaction: Answer - Increased assets
Douglas Company paid its landlord $6,000 for this month's rental on its
warehouse. This transaction: Answer - Increased expenses
Atlas Corporation sold a used machine for less than its carrying value. This
transaction: Answer - Generated loss on sale of fixed assets
Which of the following is not an adjusting entry? Answer - Cash, Unearned
Rent Revenue
When a prepaid expense was initially recorded as a debit to an asset account,
the subsequent required adjusting entry includes: Answer - A debit to an
expense
Which of the following accounts is NOT considered a permanent account?
Answer - Rent Expense
Which of the following income statement elements is an economic inflow that
occurs from sale of goods or services? Answer - Revenue
100% CORRECT ANSWERS.
The primary objective of financial reporting is to provide financial information
about the reporting company that is useful Answer - To existing and potential
investors, lenders, and other creditors in making decision about providing
resources to the company.
Generally Accepted Accounting Principles(GAAP) are established by: Answer -
The financial Accounting Standards board
Changes in Stockholders' equity that result from the company's primary and
usual business operations are: Answer - Revenues and Expenses
Which of the following terms describe probably future economic benefits
obtained or controlled by a particular company as a result of past transactions
or events? Answer - Asset
ABC corporation issues 1,000 shares of $10 par value common stock at $12 per
share. In recording the transaction, credits are made to: Answer - Common
Stock $10,000 and Paid-in Capital in Excess of Par Value $2,000
The financial effect of a business transaction is initially recorded with: Answer -
A journal Entry
Which of the following descriptions about accrue basis accounting is
INCORRECT? Answer - Under accrual basis accounting, revenue is recognized
when cash is received
, After transactions are recorded in the general journal, the usual next step in
the accounting cycle is to: Answer - Post transactions to the general ledger
where an unadjusted trial balance can be prepared
The usual final step in the accounting cycle is to: Answer - Prepare a post-
closing trial balance for the next accounting period
Arnold Company provided services to its customers on credit for $25,000. For
Arnold Company, this transaction: Answer - Increased assets
Douglas Company paid its landlord $6,000 for this month's rental on its
warehouse. This transaction: Answer - Increased expenses
Atlas Corporation sold a used machine for less than its carrying value. This
transaction: Answer - Generated loss on sale of fixed assets
Which of the following is not an adjusting entry? Answer - Cash, Unearned
Rent Revenue
When a prepaid expense was initially recorded as a debit to an asset account,
the subsequent required adjusting entry includes: Answer - A debit to an
expense
Which of the following accounts is NOT considered a permanent account?
Answer - Rent Expense
Which of the following income statement elements is an economic inflow that
occurs from sale of goods or services? Answer - Revenue
