ACCTG 101 FINAL EXAM
COMPLETE SOLUTIONS |
JOURNAL ENTRIES, ADJUSTING
LATEST MOCK PRACTICE SET
140 Questions with Answers and Detailed Rationales
100 PERCENT GUARANTEED PASS
INSTANT DOWNLOAD ANSWERS INCLUDED
IMPORTANCE OF THIS DOCUMENT
This comprehensive examination preparation guide has been meticulously developed to help you succeed in the
ACCTG 101 FINAL EXAM COMPLETE SOLUTIONS | JOURNAL ENTRIES, ADJUSTING ENTRIES, FINANCIAL
STATEMENTS, BUDGETS, RELEVANT COSTS & LOAN AMORTIZATION | 2026 - BYU.. It contains 140
carefully selected questions that reflect the most current exam content and testing strategies. Each question is
accompanied by a correct answer and a detailed rationale that explains the underlying pathophysiology,
pharmacology, or clinical reasoning.
Self-Assessment – Test your knowledge and Exam Preparation – Familiarize yourself with the
identify areas requiring further question format and content
study areas
Concept Reinforcement – Deepen your Confidence Building – Develop test-taking
understanding through strategies and reduce
evidence-based exam anxiety
rationales
Time Management – Practice answering
questions under simulated
exam conditions
Review Summary 140 Questions
Foundations - Application - Acctg 101 Complete Solutions Journal Entries Adjusting Entries Financial
Statements Budgets Relevant Costs & LOAN Amortization 2026 - BYU Financial Accounting Undergraduate
YEAR 3 / Graduate
All answers with rationales
,Table of Contents
Content Area Questions Key Topics
Journal Entries 1-24 Company, Total, Inventory, Entry, Expense
Adjusting Entries 25-48 Company, Interest, Budget, Costs, Ratio
Financial Statements 49-72 Company, Costs, Balance, Interest, Inventory
Budgets 73-96 Company, Budget, Interest, Current, Monthly
Relevant Costs 97-120 Company, Costs, Sales, Interest, Units
LOAN Amortization 121-140 Company, Units, Costs, Accounts, Budget
TOTAL 140 All questions include answers and detailed rationales
,Section A - Journal Entries
Q1.
A company uses a perpetual inventory system. It purchases inventory on account with
terms 2/10, n/30. The entry to record the purchase includes a debit to Inventory and a
credit to Accounts Payable. If the company pays within the discount period, which of the
following correctly reflects the payment entry?
A. Debit Accounts Payable, Credit Cash, B. Debit Accounts Payable, Debit Inventory,
Credit Purchase Discounts Credit Cash
C. Debit Accounts Payable, Credit Cash, D. Debit Accounts Payable, Debit Purchase
Credit Inventory Discounts, Credit Cash
Correct: C - Debit Accounts Payable, Credit Cash, Credit Inventory
Rationale:Under the net method or gross method with perpetual inventory, paying within the
discount period reduces the inventory cost. The correct entry is debit Accounts Payable for
the gross amount, credit Cash for the net amount, and credit Inventory for the discount.
Option C reflects this. A, B, and D misstate the treatment of the discount or use a separate
contra account not used in the perpetual system.
Q2.
An adjusting entry for accrued salaries at year-end debits Salaries Expense and credits
Salaries Payable. If the next payday occurs after year-end, what is the subsequent entry to
record payment?
A. Debit Salaries Expense, Credit Cash B. Debit Salaries Payable, Credit Cash
C. Debit Salaries Payable, Debit Salaries D. Debit Salaries Expense, Credit Salaries
Expense, Credit Cash Payable
Correct: C - Debit Salaries Payable, Debit Salaries Expense, Credit Cash
Rationale:When payment is made, the portion previously accrued is removed from Salaries
Payable, and the current period's expense is recognized. Thus, debit Salaries Payable for the
accrued amount and debit Salaries Expense for the current portion, with a credit to Cash.
Option C correctly reflects this split. The other options ignore either the liability settlement or
the current expense.
Q3.
Which of the following is NOT a required part of a complete set of financial statements
under GAAP?
A. Statement of cash flows B. Statement of retained earnings
Page 3
, Section A - Journal Entries
C. Notes to the financial statements D. Management discussion and analysis
Correct: D - Management discussion and analysis
Rationale:GAAP requires the balance sheet, income statement, statement of comprehensive
income, statement of cash flows, statement of stockholders' equity, and notes. Management
discussion and analysis (MD&A) is required by the SEC for public companies but is not part
of the basic financial statements. Thus D is not required as part of the financial statements.
Q4.
A company prepares a cash budget. Which of the following items would appear in the
financing section?
A. Cash sales B. Payment to suppliers
C. Proceeds from bank loan D. Purchase of equipment
Correct: C - Proceeds from bank loan
Rationale:The financing section of a cash budget includes cash flows from borrowing,
repaying principal, and owner contributions/distributions. Proceeds from a bank loan are
financing activities. Cash sales are operating, payments to suppliers are operating, and
equipment purchases are investing.
Q5.
When deciding whether to accept a special order at a price below normal selling price,
which costs are relevant?
A. All variable costs and fixed costs B. Only variable costs that change with the
order
C. Avoidable fixed costs and incremental D. Sunk costs and opportunity costs
variable costs
Correct: C - Avoidable fixed costs and incremental variable costs
Rationale:Relevant costs are future costs that differ between alternatives. For a special
order, relevant costs include incremental variable costs and any avoidable fixed costs, plus
opportunity costs if capacity is constrained. Sunk costs are irrelevant. Fixed costs that do not
change are irrelevant. Thus C is correct.
Q6.
A company issues a $100,000, 5-year, 8% bond when the market rate is 10%. The bond
pays interest semiannually. The carrying value of the bond immediately after the first
interest payment (using the effective-interest method) will be:
Page 4
COMPLETE SOLUTIONS |
JOURNAL ENTRIES, ADJUSTING
LATEST MOCK PRACTICE SET
140 Questions with Answers and Detailed Rationales
100 PERCENT GUARANTEED PASS
INSTANT DOWNLOAD ANSWERS INCLUDED
IMPORTANCE OF THIS DOCUMENT
This comprehensive examination preparation guide has been meticulously developed to help you succeed in the
ACCTG 101 FINAL EXAM COMPLETE SOLUTIONS | JOURNAL ENTRIES, ADJUSTING ENTRIES, FINANCIAL
STATEMENTS, BUDGETS, RELEVANT COSTS & LOAN AMORTIZATION | 2026 - BYU.. It contains 140
carefully selected questions that reflect the most current exam content and testing strategies. Each question is
accompanied by a correct answer and a detailed rationale that explains the underlying pathophysiology,
pharmacology, or clinical reasoning.
Self-Assessment – Test your knowledge and Exam Preparation – Familiarize yourself with the
identify areas requiring further question format and content
study areas
Concept Reinforcement – Deepen your Confidence Building – Develop test-taking
understanding through strategies and reduce
evidence-based exam anxiety
rationales
Time Management – Practice answering
questions under simulated
exam conditions
Review Summary 140 Questions
Foundations - Application - Acctg 101 Complete Solutions Journal Entries Adjusting Entries Financial
Statements Budgets Relevant Costs & LOAN Amortization 2026 - BYU Financial Accounting Undergraduate
YEAR 3 / Graduate
All answers with rationales
,Table of Contents
Content Area Questions Key Topics
Journal Entries 1-24 Company, Total, Inventory, Entry, Expense
Adjusting Entries 25-48 Company, Interest, Budget, Costs, Ratio
Financial Statements 49-72 Company, Costs, Balance, Interest, Inventory
Budgets 73-96 Company, Budget, Interest, Current, Monthly
Relevant Costs 97-120 Company, Costs, Sales, Interest, Units
LOAN Amortization 121-140 Company, Units, Costs, Accounts, Budget
TOTAL 140 All questions include answers and detailed rationales
,Section A - Journal Entries
Q1.
A company uses a perpetual inventory system. It purchases inventory on account with
terms 2/10, n/30. The entry to record the purchase includes a debit to Inventory and a
credit to Accounts Payable. If the company pays within the discount period, which of the
following correctly reflects the payment entry?
A. Debit Accounts Payable, Credit Cash, B. Debit Accounts Payable, Debit Inventory,
Credit Purchase Discounts Credit Cash
C. Debit Accounts Payable, Credit Cash, D. Debit Accounts Payable, Debit Purchase
Credit Inventory Discounts, Credit Cash
Correct: C - Debit Accounts Payable, Credit Cash, Credit Inventory
Rationale:Under the net method or gross method with perpetual inventory, paying within the
discount period reduces the inventory cost. The correct entry is debit Accounts Payable for
the gross amount, credit Cash for the net amount, and credit Inventory for the discount.
Option C reflects this. A, B, and D misstate the treatment of the discount or use a separate
contra account not used in the perpetual system.
Q2.
An adjusting entry for accrued salaries at year-end debits Salaries Expense and credits
Salaries Payable. If the next payday occurs after year-end, what is the subsequent entry to
record payment?
A. Debit Salaries Expense, Credit Cash B. Debit Salaries Payable, Credit Cash
C. Debit Salaries Payable, Debit Salaries D. Debit Salaries Expense, Credit Salaries
Expense, Credit Cash Payable
Correct: C - Debit Salaries Payable, Debit Salaries Expense, Credit Cash
Rationale:When payment is made, the portion previously accrued is removed from Salaries
Payable, and the current period's expense is recognized. Thus, debit Salaries Payable for the
accrued amount and debit Salaries Expense for the current portion, with a credit to Cash.
Option C correctly reflects this split. The other options ignore either the liability settlement or
the current expense.
Q3.
Which of the following is NOT a required part of a complete set of financial statements
under GAAP?
A. Statement of cash flows B. Statement of retained earnings
Page 3
, Section A - Journal Entries
C. Notes to the financial statements D. Management discussion and analysis
Correct: D - Management discussion and analysis
Rationale:GAAP requires the balance sheet, income statement, statement of comprehensive
income, statement of cash flows, statement of stockholders' equity, and notes. Management
discussion and analysis (MD&A) is required by the SEC for public companies but is not part
of the basic financial statements. Thus D is not required as part of the financial statements.
Q4.
A company prepares a cash budget. Which of the following items would appear in the
financing section?
A. Cash sales B. Payment to suppliers
C. Proceeds from bank loan D. Purchase of equipment
Correct: C - Proceeds from bank loan
Rationale:The financing section of a cash budget includes cash flows from borrowing,
repaying principal, and owner contributions/distributions. Proceeds from a bank loan are
financing activities. Cash sales are operating, payments to suppliers are operating, and
equipment purchases are investing.
Q5.
When deciding whether to accept a special order at a price below normal selling price,
which costs are relevant?
A. All variable costs and fixed costs B. Only variable costs that change with the
order
C. Avoidable fixed costs and incremental D. Sunk costs and opportunity costs
variable costs
Correct: C - Avoidable fixed costs and incremental variable costs
Rationale:Relevant costs are future costs that differ between alternatives. For a special
order, relevant costs include incremental variable costs and any avoidable fixed costs, plus
opportunity costs if capacity is constrained. Sunk costs are irrelevant. Fixed costs that do not
change are irrelevant. Thus C is correct.
Q6.
A company issues a $100,000, 5-year, 8% bond when the market rate is 10%. The bond
pays interest semiannually. The carrying value of the bond immediately after the first
interest payment (using the effective-interest method) will be:
Page 4
