LSU ACCT 3222 WILEY TEST 1 2026 ACTUAL
EXAM SCRIPT 164 QUESTIONS WITH
COMPLETE SOLUTIONS FULL REVIEW
PACKAGE GRADED A+
⩥ balance sheet.
Answer: transactions that affect this are carried forward each year
⩥ income statement.
Answer: transactions affect this are closed to stockholders' equity each
year
⩥ transactions.
Answer: exchanges between a company and another party, adjustments
to recorded accounting information reflect in the financial statements in
accordance with accounting principles (sales, purchases, paying
employees, paying interest)
⩥ 1. Transactions Occur
2. Prepare documents
3. Record in journals
4. Post to the ledger
,5. Prepare unadjusted general ledger trial balance
6. Prepare and post adjusting entries
7. Prepare adjusted trial balance
8. Prepare financial statements
9. Prepare closing entries.
Answer: steps in the accounting cycle
⩥ accounting system.
Answer: -used to ensure that the company is creating value, want to
know what managers and doing well and rewarding them
-subset of the management reporting system that is concerned with
financial statements required by FASB and SEC
-measure, record, categorize and summarize the daily operations of the
business in monetary terms
-provide accountability of all levels of management for responsibilities
-protect business assets from unauthorized use or consumption
⩥ purpose of a company.
Answer: -provide a service other people cannot do
,-not efficient to do everything yourself
-want to create value by taking something in and producing something
that is worth more than the sum of its parts
⩥ Gross Profit = Sales - COGS.
Answer: equation for gross profit
⩥ value chain.
Answer: shows the firm's internal business processes and the resource
flows between them; how the company creates value that increases the
stock value and then can pay off its debts
⩥ duality.
Answer: for each event the firm gives something we can expect a related
event where the firm receives something
⩥ stock flow.
Answer: each event has at least one inflow and one outflow
⩥ sale and cash receipts cycle.
Answer: inflow: the company gives the good or service to the customer
outflow: receiving cash from the customer
, ⩥ purchases and cash disbursements cycle.
Answer: inflow: company gives cash to the supplier
outflow: fixed assets, raw material, inventory, whatever you get from the
supplier
⩥ payroll cycle.
Answer: inflow: the company gives cash to the employee
outflow: labor, the company receives labor from the employee
⩥ financing cycle.
Answer: inflow: company receives cash from the lender or stockholder
outflow: the company pays cash to the lender (principal and interest) or
stockholder (dividends)
⩥ time cards.
Answer: used to determine gross pay owed to employees
⩥ customer purchase order.
EXAM SCRIPT 164 QUESTIONS WITH
COMPLETE SOLUTIONS FULL REVIEW
PACKAGE GRADED A+
⩥ balance sheet.
Answer: transactions that affect this are carried forward each year
⩥ income statement.
Answer: transactions affect this are closed to stockholders' equity each
year
⩥ transactions.
Answer: exchanges between a company and another party, adjustments
to recorded accounting information reflect in the financial statements in
accordance with accounting principles (sales, purchases, paying
employees, paying interest)
⩥ 1. Transactions Occur
2. Prepare documents
3. Record in journals
4. Post to the ledger
,5. Prepare unadjusted general ledger trial balance
6. Prepare and post adjusting entries
7. Prepare adjusted trial balance
8. Prepare financial statements
9. Prepare closing entries.
Answer: steps in the accounting cycle
⩥ accounting system.
Answer: -used to ensure that the company is creating value, want to
know what managers and doing well and rewarding them
-subset of the management reporting system that is concerned with
financial statements required by FASB and SEC
-measure, record, categorize and summarize the daily operations of the
business in monetary terms
-provide accountability of all levels of management for responsibilities
-protect business assets from unauthorized use or consumption
⩥ purpose of a company.
Answer: -provide a service other people cannot do
,-not efficient to do everything yourself
-want to create value by taking something in and producing something
that is worth more than the sum of its parts
⩥ Gross Profit = Sales - COGS.
Answer: equation for gross profit
⩥ value chain.
Answer: shows the firm's internal business processes and the resource
flows between them; how the company creates value that increases the
stock value and then can pay off its debts
⩥ duality.
Answer: for each event the firm gives something we can expect a related
event where the firm receives something
⩥ stock flow.
Answer: each event has at least one inflow and one outflow
⩥ sale and cash receipts cycle.
Answer: inflow: the company gives the good or service to the customer
outflow: receiving cash from the customer
, ⩥ purchases and cash disbursements cycle.
Answer: inflow: company gives cash to the supplier
outflow: fixed assets, raw material, inventory, whatever you get from the
supplier
⩥ payroll cycle.
Answer: inflow: the company gives cash to the employee
outflow: labor, the company receives labor from the employee
⩥ financing cycle.
Answer: inflow: company receives cash from the lender or stockholder
outflow: the company pays cash to the lender (principal and interest) or
stockholder (dividends)
⩥ time cards.
Answer: used to determine gross pay owed to employees
⩥ customer purchase order.
