LSU ACCT 2000 EXAM 2 ACTUAL TEST PAPER
2026 QUESTIONS WITH SOLUTIONS GRADED
A+
◉ 1. The ______ Recognition Principle requires companies to
recognize revenue in the accounting period in which it is earned.
Answer: Revenue
◉ 1. Adjustments are prepared every time ______________ are issued in
order to ensure all accounts are correctly reported. Answer:
Financial Statements
◉ Adjustments includes one ______ and one ____ accounts. Answer:
Balance Sheet (assets or liability)
Income Statement (revenue or expense)
◉ 1. Accumulated Deprecation is what type of account? ________.
What financial statement would include this account? ______________
Answer: Contra Asset Account
Balance Sheet
◉ List the four types of adjustments: Answer: 1. Prepaid expenses
2. Unearned revenues
,3. accrued revenues
4. accrued expenses
◉ An accrued expense adjustment, records amounts owed (or
incurred), but not yet paid. Prior to completing this type of
adjustment, which accounts are understated? Answer: Expenses and
Liabilities
◉ A Supply account at the end of the period showed a balance of
$5,000. However, a physical counts showed only $3,000. To correct
this issue, the supplies account is _________________ and the supplies
expense account is ______ by ________________. Answer: Decreased
Increased
$2,000
◉ A Supply account at the end of the period showed a balance of
$5,000. However, a physical counts showed only $3,000. To correct
this issue, the supplies account is decreased and the supplies
expense account is increased by $2,000.
from the scenario above, if the company does not make the
adjustment, supplies expense, net income, and stockholders' equity
would be _____________and assets would be ____________. Answer:
understated
overstated
, ◉ Which one of these statements about the accrual basis of
accounting is false?
a. Companies record events that change their financial statements in
the period in which events occur, even if cash was not exchanged.
b. Companies recognize revenue in the period in which it is earned.
c. This basis is in accord with generally accepted accounting
principles.
d. Companies record revenue only when they receive cash, and
record expense only when they pay out cash. Answer: d. Companies
record revenue only when they receive cash, and record expense
only when they pay out cash.
◉ 1) Each of the following is a major type (or category) of
adjustment except:
a. Prepaid expenses
b. Accrued revenues
c. Accrued expenses
d. Earned expenses Answer: d. Earned expenses
◉ 1) Colleen Mooney earned a salary of $600 for the last week of
September. She will be paid on October 1. The adjustment for
Colleen's employer at September 30 is:
a. No entry is required.
2026 QUESTIONS WITH SOLUTIONS GRADED
A+
◉ 1. The ______ Recognition Principle requires companies to
recognize revenue in the accounting period in which it is earned.
Answer: Revenue
◉ 1. Adjustments are prepared every time ______________ are issued in
order to ensure all accounts are correctly reported. Answer:
Financial Statements
◉ Adjustments includes one ______ and one ____ accounts. Answer:
Balance Sheet (assets or liability)
Income Statement (revenue or expense)
◉ 1. Accumulated Deprecation is what type of account? ________.
What financial statement would include this account? ______________
Answer: Contra Asset Account
Balance Sheet
◉ List the four types of adjustments: Answer: 1. Prepaid expenses
2. Unearned revenues
,3. accrued revenues
4. accrued expenses
◉ An accrued expense adjustment, records amounts owed (or
incurred), but not yet paid. Prior to completing this type of
adjustment, which accounts are understated? Answer: Expenses and
Liabilities
◉ A Supply account at the end of the period showed a balance of
$5,000. However, a physical counts showed only $3,000. To correct
this issue, the supplies account is _________________ and the supplies
expense account is ______ by ________________. Answer: Decreased
Increased
$2,000
◉ A Supply account at the end of the period showed a balance of
$5,000. However, a physical counts showed only $3,000. To correct
this issue, the supplies account is decreased and the supplies
expense account is increased by $2,000.
from the scenario above, if the company does not make the
adjustment, supplies expense, net income, and stockholders' equity
would be _____________and assets would be ____________. Answer:
understated
overstated
, ◉ Which one of these statements about the accrual basis of
accounting is false?
a. Companies record events that change their financial statements in
the period in which events occur, even if cash was not exchanged.
b. Companies recognize revenue in the period in which it is earned.
c. This basis is in accord with generally accepted accounting
principles.
d. Companies record revenue only when they receive cash, and
record expense only when they pay out cash. Answer: d. Companies
record revenue only when they receive cash, and record expense
only when they pay out cash.
◉ 1) Each of the following is a major type (or category) of
adjustment except:
a. Prepaid expenses
b. Accrued revenues
c. Accrued expenses
d. Earned expenses Answer: d. Earned expenses
◉ 1) Colleen Mooney earned a salary of $600 for the last week of
September. She will be paid on October 1. The adjustment for
Colleen's employer at September 30 is:
a. No entry is required.
