ACCT 301 ACTUAL FINAL EXAM | COMPLETE AND GRADED QUESTIONS
AND ANSWERS 2026 LATEST UPDATED | 100% GRADED CORRECT | 100%
GUARANTEED TO PASS | GET A+
1. GAAP: Generally Accepted Accounting Principles
2. Role of GAAP: - A principle of reporting in a given area established by an
authoritative accounting rule-making body.
- A given practice that has been accepted as appropriate because of its
universal application over time.
3. FASB: Financial Accounting Standards Board
4. Role of FASB: Establishes and improve standards of financial accounting
and reporting for the guidance and education of the public, which includes
issuers, auditors, and users of financial information.
5. SEC: Securities and Exchange Commission
6. Role of SEC: - Established by Federal Government
- Requires public companies to file audited financial statements
,- Prescribe accounting practices (GAAP developed by FASB) Enforcement
7. The Revenue Recognition Principle: Recognize revenue in the period that
the performance obligation is completed for the amount expected to be
received
8. The Conservative Principles (conservative scenario): 1. Report
Revenues/Gains and Increases in Asset values ONLY when it has occurred
2. Report Expenses/Losses and Decreases in Asset values when they are
known and probable to happen
9. Adjusting Entry: Entry made at the end of a period to recognize
revenue/expense in the proper period
10. The 3 Required Closing Entries: - Close all Revenues to Retained Earnings
- Close all Expenses to Retained Earning
- Close all Dividends to Retained Earnings
11. Current Assets:: assets that convert to cash or used up < 1 Year
12. Capital Stock: Report at # Shares Issued x Par Value
13. Additional Paid-In-Capital: Value received in EXCESS of par value.
, 14. Treasury Stock: A company's own shares of stock that it has purchased.
It reduces the total equity on the balance sheet.
15. Earnings per Share: Standardized measure of profitability. Helps to
evaluate the profitability of companies of different sizes. Investor focused
16. Non-gaap measures: Performance metrics that don't follow GAAP. Shows
company's good side. Company knows their business the best. Explain
away 1-time losses
17. Discontinued Operations: - Eliminates the results of operations of a
component of a business.
- Represents a strategic shift
- Report separate from "continuing operations" and net of tax
18 Real earnings management: Changes in real activities; affects cash flows
19. accrual earnings management: Changes in accounting
methods/estimates; No cash flow effect.
20. What are the five steps of the revenue recognition process? (I.I.I.A.R.): -
Identify
AND ANSWERS 2026 LATEST UPDATED | 100% GRADED CORRECT | 100%
GUARANTEED TO PASS | GET A+
1. GAAP: Generally Accepted Accounting Principles
2. Role of GAAP: - A principle of reporting in a given area established by an
authoritative accounting rule-making body.
- A given practice that has been accepted as appropriate because of its
universal application over time.
3. FASB: Financial Accounting Standards Board
4. Role of FASB: Establishes and improve standards of financial accounting
and reporting for the guidance and education of the public, which includes
issuers, auditors, and users of financial information.
5. SEC: Securities and Exchange Commission
6. Role of SEC: - Established by Federal Government
- Requires public companies to file audited financial statements
,- Prescribe accounting practices (GAAP developed by FASB) Enforcement
7. The Revenue Recognition Principle: Recognize revenue in the period that
the performance obligation is completed for the amount expected to be
received
8. The Conservative Principles (conservative scenario): 1. Report
Revenues/Gains and Increases in Asset values ONLY when it has occurred
2. Report Expenses/Losses and Decreases in Asset values when they are
known and probable to happen
9. Adjusting Entry: Entry made at the end of a period to recognize
revenue/expense in the proper period
10. The 3 Required Closing Entries: - Close all Revenues to Retained Earnings
- Close all Expenses to Retained Earning
- Close all Dividends to Retained Earnings
11. Current Assets:: assets that convert to cash or used up < 1 Year
12. Capital Stock: Report at # Shares Issued x Par Value
13. Additional Paid-In-Capital: Value received in EXCESS of par value.
, 14. Treasury Stock: A company's own shares of stock that it has purchased.
It reduces the total equity on the balance sheet.
15. Earnings per Share: Standardized measure of profitability. Helps to
evaluate the profitability of companies of different sizes. Investor focused
16. Non-gaap measures: Performance metrics that don't follow GAAP. Shows
company's good side. Company knows their business the best. Explain
away 1-time losses
17. Discontinued Operations: - Eliminates the results of operations of a
component of a business.
- Represents a strategic shift
- Report separate from "continuing operations" and net of tax
18 Real earnings management: Changes in real activities; affects cash flows
19. accrual earnings management: Changes in accounting
methods/estimates; No cash flow effect.
20. What are the five steps of the revenue recognition process? (I.I.I.A.R.): -
Identify
