CSUF ACCT 201A (HOFFMAN) FINAL
COMPREHENSIVE STUDY GUIDE 2026
FULL QUESTIONS AND SOLUTIONS
GRADED A+
◍ Current and long-term.
Answer: Liabilities are divided into which two categories on the balance
sheet?
◍ Debit cash; Credit notes payable.
Answer: Obtaining a note payable for cash results in what entry?
◍ Debit cash 5000; Credit notes payable 5000.
Answer: Rhodes borrowed $5000 by signing a 5 year note with an interest
rate of 8%. On the date the note is signed, the journal entry would include:
◍ Account payable.
Answer: A company purchases inventory/supplies and promises to pay
within 30-45 days. No formal agreement is signed. The transaction is
recorded as a(n)
◍ Internal users of accounting data are.
Answer: People who work in the company, i.e. managers, human resources
◍ External users od accounting data are.
Answer: People outside the company, i.e. gov agency's, consumers,
creditors, investors
◍ B, D.
Answer: Withholding taxes for federal and state income tax are based upon
which items?A. Size of the corporationB. Amounts earned by employeesC.
Number of employees at the corporationD. Number of exemptions claimed
,◍ Unemployment taxes and FICA (Federal Insurance Contributions Act).
Answer: What payroll-related taxes must the employer pay by law?
◍ What are the three forms of business ownerships?.
Answer: -Sole proprietorship: one business owner; personal liability; limited
life-Partnership: two or more owners; personal liability; limited
life-Corporation: share stock, limited liability; unlimited life
◍ Income Statement.
Answer: the purpose of an Income statement is to determine net income.
SINGLE STEP: revenues - expenses = net incomeMULTI-STEP: sales
revenue (less) sales discount, sales returns & allowances net sales- cost of
goods sold= gross profit- operating expense (i.e. salaries, rent, depreciation,
utilities, etc.)= income from operations+ other revenues and gains- other
expenses and losses= Net Income
◍ Retained Earnings Statement.
Answer: the purpose of the retained earning statement is explain how
retained earnings changed over a period of timeRetained
Earnings(beginning of period)+ Net Income- DividendsRetained Earnings
(end of period)
◍ Debit cash 100000; Credit notes payable 100000 (not 106000 because
interest is not recorded until time has elapsed).
Answer: ABC Corp borrowed $100000 cash on a 1 year, 6% note payable
on November 1 that requires them to pay both principal and interest October
31 of the following year. What is in the entry on the date of purchase?
◍ Classified Balance Sheet.
Answer: the purpose of the balance sheet is to report the financial condition
of a company at a precise moment in timeASSETS-Current Assets: cash,
accounts receivable, (LESS) allowance for doubtful accounts,
inventoryPPE: land, building, (LESS) accumulated depreciation,
equipmentINTANGABLE ASSETS: patent, franchiseLIABILITIES-
current liabilities: current portion of mortgage payable, note payable,
, accounts payable, salaries payable, bonds payable, (LESS) discount on
bonds payable, premium on bonds payable, unearned revenuelong-term:
mortgage payableSE - capital stock, retained earnings
◍ Accounting equation is.
Answer: Assets = Liability + Stockholder's Equity
◍ B, C, E.
Answer: Which are examples of fringe benefits provided by employers?A.
FICA matching contributionsB. Reduced or no-cost company-provided
servicesC. Payment of insurance premiums on employee's behalfD. Payment
for services provided by employee to employerE. Contributions to
retirement and other savings accounts
◍ Assets.
Answer: something of value owned by an entity(i.e cash, accounts
receivable, supplies, equipment, etc); often used to produce a profit, and
increase when they are acquired, or a company sells goods or services to
customers.
◍ Liabilities.
Answer: debts or obligations of the company(what the company owes) (i.e.
accounts payable, notes payable, and mortgage payable); often increases
when the company borrows money or when it charges something that it
buys, and decreases when the debt is paid off to the creditor in which the
money was borrowed.
◍ Account.
Answer: A(n) _____ payable is a short-term liability that occurs when a
company purchases goods and does not immediately pay with cash
◍ Stockholder's Equity.
Answer: Owners' claim on total assets of the business; it contains two
components: 1. Common stock-total amount paid in by stockholders for
shares they purchase 2. Retained Earnings-net income the company retains
in the business; contains revenues, expenses, and dividends.
COMPREHENSIVE STUDY GUIDE 2026
FULL QUESTIONS AND SOLUTIONS
GRADED A+
◍ Current and long-term.
Answer: Liabilities are divided into which two categories on the balance
sheet?
◍ Debit cash; Credit notes payable.
Answer: Obtaining a note payable for cash results in what entry?
◍ Debit cash 5000; Credit notes payable 5000.
Answer: Rhodes borrowed $5000 by signing a 5 year note with an interest
rate of 8%. On the date the note is signed, the journal entry would include:
◍ Account payable.
Answer: A company purchases inventory/supplies and promises to pay
within 30-45 days. No formal agreement is signed. The transaction is
recorded as a(n)
◍ Internal users of accounting data are.
Answer: People who work in the company, i.e. managers, human resources
◍ External users od accounting data are.
Answer: People outside the company, i.e. gov agency's, consumers,
creditors, investors
◍ B, D.
Answer: Withholding taxes for federal and state income tax are based upon
which items?A. Size of the corporationB. Amounts earned by employeesC.
Number of employees at the corporationD. Number of exemptions claimed
,◍ Unemployment taxes and FICA (Federal Insurance Contributions Act).
Answer: What payroll-related taxes must the employer pay by law?
◍ What are the three forms of business ownerships?.
Answer: -Sole proprietorship: one business owner; personal liability; limited
life-Partnership: two or more owners; personal liability; limited
life-Corporation: share stock, limited liability; unlimited life
◍ Income Statement.
Answer: the purpose of an Income statement is to determine net income.
SINGLE STEP: revenues - expenses = net incomeMULTI-STEP: sales
revenue (less) sales discount, sales returns & allowances net sales- cost of
goods sold= gross profit- operating expense (i.e. salaries, rent, depreciation,
utilities, etc.)= income from operations+ other revenues and gains- other
expenses and losses= Net Income
◍ Retained Earnings Statement.
Answer: the purpose of the retained earning statement is explain how
retained earnings changed over a period of timeRetained
Earnings(beginning of period)+ Net Income- DividendsRetained Earnings
(end of period)
◍ Debit cash 100000; Credit notes payable 100000 (not 106000 because
interest is not recorded until time has elapsed).
Answer: ABC Corp borrowed $100000 cash on a 1 year, 6% note payable
on November 1 that requires them to pay both principal and interest October
31 of the following year. What is in the entry on the date of purchase?
◍ Classified Balance Sheet.
Answer: the purpose of the balance sheet is to report the financial condition
of a company at a precise moment in timeASSETS-Current Assets: cash,
accounts receivable, (LESS) allowance for doubtful accounts,
inventoryPPE: land, building, (LESS) accumulated depreciation,
equipmentINTANGABLE ASSETS: patent, franchiseLIABILITIES-
current liabilities: current portion of mortgage payable, note payable,
, accounts payable, salaries payable, bonds payable, (LESS) discount on
bonds payable, premium on bonds payable, unearned revenuelong-term:
mortgage payableSE - capital stock, retained earnings
◍ Accounting equation is.
Answer: Assets = Liability + Stockholder's Equity
◍ B, C, E.
Answer: Which are examples of fringe benefits provided by employers?A.
FICA matching contributionsB. Reduced or no-cost company-provided
servicesC. Payment of insurance premiums on employee's behalfD. Payment
for services provided by employee to employerE. Contributions to
retirement and other savings accounts
◍ Assets.
Answer: something of value owned by an entity(i.e cash, accounts
receivable, supplies, equipment, etc); often used to produce a profit, and
increase when they are acquired, or a company sells goods or services to
customers.
◍ Liabilities.
Answer: debts or obligations of the company(what the company owes) (i.e.
accounts payable, notes payable, and mortgage payable); often increases
when the company borrows money or when it charges something that it
buys, and decreases when the debt is paid off to the creditor in which the
money was borrowed.
◍ Account.
Answer: A(n) _____ payable is a short-term liability that occurs when a
company purchases goods and does not immediately pay with cash
◍ Stockholder's Equity.
Answer: Owners' claim on total assets of the business; it contains two
components: 1. Common stock-total amount paid in by stockholders for
shares they purchase 2. Retained Earnings-net income the company retains
in the business; contains revenues, expenses, and dividends.
