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ACCOUNTING 301A CSUF MIDTERM
EXAM REVIEW 2026 QUESTIONS AND
ANSWERS | A+ GRADED | WITH
EXPERT SOLUTIONS
When a corporate pays a note payable and interest... - correct
answer -they will debit notes payable and debit interest expense
The Accounting equation must remain in balance... - correct
answer -throughout each step in the accounting cycle.
A trial balance may prove that debits and credits are equal, but -
correct answer -1. An account may have been entered in the
wrong account
2. A transaction may have been entered twice
3. A transaction could have been omitted
When an expense is paid in cash before it is used, it is called a -
correct answer -prepaid expense
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Big-Mouth Frog Corporation had revenues of $330,000, expenses
of $200,000, and dividends of $45,000. When Income Summary
is closed to Retained Earnings, the amount of the debit or credit
to Retained Earnings is a - correct answer -$130,000 (revenues-
expenses)
Which of the following is true about the information provided in the
income statement? - correct answer -1. It helps in evaluating past
performance of the enterprise
2. It provides a basis for predicting future performance
3. It is a period report that contains temporary accounts
The single-step income statement emphasizes - correct answer -
total revenues and total expenses
Which of the following is true of accounting for changes in
estimates? - correct answer -Changes in estimates are not carried
back to adjust prior years
Which of the following properly describes a deferral? - correct
answer -Cash is received before revenue is recognized
ACCOUNTING 301A CSUF MIDTERM
EXAM REVIEW 2026 QUESTIONS AND
ANSWERS | A+ GRADED | WITH
EXPERT SOLUTIONS
When a corporate pays a note payable and interest... - correct
answer -they will debit notes payable and debit interest expense
The Accounting equation must remain in balance... - correct
answer -throughout each step in the accounting cycle.
A trial balance may prove that debits and credits are equal, but -
correct answer -1. An account may have been entered in the
wrong account
2. A transaction may have been entered twice
3. A transaction could have been omitted
When an expense is paid in cash before it is used, it is called a -
correct answer -prepaid expense
, Page | 2
Big-Mouth Frog Corporation had revenues of $330,000, expenses
of $200,000, and dividends of $45,000. When Income Summary
is closed to Retained Earnings, the amount of the debit or credit
to Retained Earnings is a - correct answer -$130,000 (revenues-
expenses)
Which of the following is true about the information provided in the
income statement? - correct answer -1. It helps in evaluating past
performance of the enterprise
2. It provides a basis for predicting future performance
3. It is a period report that contains temporary accounts
The single-step income statement emphasizes - correct answer -
total revenues and total expenses
Which of the following is true of accounting for changes in
estimates? - correct answer -Changes in estimates are not carried
back to adjust prior years
Which of the following properly describes a deferral? - correct
answer -Cash is received before revenue is recognized
