ACCY 201 FINAL EXAM BARTON 2026
INTRODUCTORY ACCOUNTING ASSESSMENT
TEST PAPER QUESTIONS SOLUTIONS GRADED
A+
◉ credit.
Answer: recorded on the right side; an entry that decreases asset
and expense accounts and increases liability, revenue, and most
equity accounts
◉ Measurement Principle (cost principle).
Answer: amounts are recorded at cost and usually in amounts of
money
◉ Revenue recognition principle.
Answer: revenue is recognized when it is earned (maganizes) and
must take into account for returns, etc.
◉ expense recognition principle (matching principle).
Answer: expense must be recorded when revenue is recorded
◉ full disclosure principle.
,Answer: company must report details in financial statements
◉ going-concern assumption.
Answer: assume that the business will continue operating
◉ monetary unit assumption.
Answer: express transactions and events in terms of money
◉ time period assumption.
Answer: life of a company can be divided into periods
◉ business entity assumption.
Answer: business is accounted for separately than from its owner
◉ internal users.
Answer: officers, managers, internal auditors, sales staff, budget
officers, controllers
◉ external users.
Answer: lenders, shareholders, governments, consumer groups,
external auditors, customers
, ◉ bank statement balance.
Answer: -add deposits in transit
-deduct outstanding checks
-add or deduct bank errors
◉ book balance.
Answer: -add collections made by bank
-add interest earned on checking account
-deduct NSF checks
-deduct bank service charge
-add or deduct book errors
◉ close revenue account.
Answer: move to income summary account - right side
◉ close expense accounts.
Answer: move to income summary account - left side
◉ close income summary account.
Answer: move to retained earnings
◉ Income summary account.
INTRODUCTORY ACCOUNTING ASSESSMENT
TEST PAPER QUESTIONS SOLUTIONS GRADED
A+
◉ credit.
Answer: recorded on the right side; an entry that decreases asset
and expense accounts and increases liability, revenue, and most
equity accounts
◉ Measurement Principle (cost principle).
Answer: amounts are recorded at cost and usually in amounts of
money
◉ Revenue recognition principle.
Answer: revenue is recognized when it is earned (maganizes) and
must take into account for returns, etc.
◉ expense recognition principle (matching principle).
Answer: expense must be recorded when revenue is recorded
◉ full disclosure principle.
,Answer: company must report details in financial statements
◉ going-concern assumption.
Answer: assume that the business will continue operating
◉ monetary unit assumption.
Answer: express transactions and events in terms of money
◉ time period assumption.
Answer: life of a company can be divided into periods
◉ business entity assumption.
Answer: business is accounted for separately than from its owner
◉ internal users.
Answer: officers, managers, internal auditors, sales staff, budget
officers, controllers
◉ external users.
Answer: lenders, shareholders, governments, consumer groups,
external auditors, customers
, ◉ bank statement balance.
Answer: -add deposits in transit
-deduct outstanding checks
-add or deduct bank errors
◉ book balance.
Answer: -add collections made by bank
-add interest earned on checking account
-deduct NSF checks
-deduct bank service charge
-add or deduct book errors
◉ close revenue account.
Answer: move to income summary account - right side
◉ close expense accounts.
Answer: move to income summary account - left side
◉ close income summary account.
Answer: move to retained earnings
◉ Income summary account.
