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Survey of Accounting Exam (2026/2027)|
Complete Questions and Verified Answers
Pass Guaranteed - A+ Graded.
OVERVIEW: This exam covers financial accounting, managerial accounting, journal entries,
financial statements, inventory, depreciation, budgeting, cost accounting, and ratio analysis.
INSTRUCTIONS: Read each question carefully. Select the best answer for each question. All
questions must be answered correctly to achieve a passing score.
SCENARIO 1: Journal Entries — ABC Services Inc.
ABC Services Inc. began operations on January 1, 2026 The following transactions occurred
during January:
• Jan 2: Issued 10,000 shares of common stock for $100,000 cash.
• Jan 5: Purchased equipment for $30,000 cash.
• Jan 8: Performed services on account for $15,000.
• Jan 12: Paid $2,400 for a 12-month insurance policy.
• Jan 15: Received $8,000 cash from customers for services previously performed on
account.
• Jan 20: Incurred $5,000 of salaries expense, to be paid next month.
• Jan 25: Declared and paid $1,000 cash dividend.
• Jan 31: Recorded depreciation on equipment of $500.
Q1: What is the correct journal entry to record the January 2 stock issuance? A. Debit Common
Stock $100,000; Credit Cash $100,000 B. Debit Cash $100,000; Credit Common Stock $100,000
, 2
C. Debit Cash $100,000; Credit Accounts Receivable $100,000 D. Debit Equipment $100,000;
Credit Common Stock $100,000
Correct Answer: B [CORRECT]
Rationale: Cash is debited (asset increase) and Common Stock is credited (equity increase). This
follows the double-entry system and GAAP equity recording standards.
Q2: What is the correct journal entry to record the January 5 equipment purchase? A. Debit
Equipment $30,000; Credit Accounts Payable $30,000 B. Debit Equipment $30,000; Credit Cash
$30,000 C. Debit Cash $30,000; Credit Equipment $30,000 D. Debit Equipment Expense
$30,000; Credit Cash $30,000
Correct Answer: B [CORRECT]
Rationale: Equipment (asset) is debited for increase; Cash (asset) is credited for decrease.
Equipment is capitalized, not expensed, per GAAP matching principle.
Q3: What is the correct journal entry to record the January 8 services performed on account? A.
Debit Cash $15,000; Credit Service Revenue $15,000 B. Debit Accounts Receivable $15,000;
Credit Service Revenue $15,000 C. Debit Service Revenue $15,000; Credit Accounts Receivable
$15,000 D. Debit Accounts Payable $15,000; Credit Service Revenue $15,000
Correct Answer: B [CORRECT]
Rationale: Revenue is recognized when earned (accrual basis). Accounts Receivable is debited
(asset increase) and Service Revenue is credited (revenue increase).
Q4: What is the correct journal entry to record the January 12 insurance policy purchase? A.
Debit Insurance Expense $2,400; Credit Cash $2,400 B. Debit Prepaid Insurance $2,400; Credit
Cash $2,400 C. Debit Cash $2,400; Credit Prepaid Insurance $2,400 D. Debit Insurance Expense
$200; Credit Cash $2,400
Correct Answer: B [CORRECT]
Rationale: A 12-month prepaid policy is an asset (Prepaid Insurance) until consumed. Expensing
immediately violates the matching principle under GAAP.
Q5: What is the correct journal entry to record the January 20 salaries incurred but not yet
paid? A. Debit Salaries Expense $5,000; Credit Salaries Payable $5,000 B. Debit Salaries Payable
$5,000; Credit Salaries Expense $5,000 C. Debit Salaries Expense $5,000; Credit Cash $5,000 D.
Debit Cash $5,000; Credit Salaries Expense $5,000
Correct Answer: A [CORRECT]
Survey of Accounting Exam (2026/2027)|
Complete Questions and Verified Answers
Pass Guaranteed - A+ Graded.
OVERVIEW: This exam covers financial accounting, managerial accounting, journal entries,
financial statements, inventory, depreciation, budgeting, cost accounting, and ratio analysis.
INSTRUCTIONS: Read each question carefully. Select the best answer for each question. All
questions must be answered correctly to achieve a passing score.
SCENARIO 1: Journal Entries — ABC Services Inc.
ABC Services Inc. began operations on January 1, 2026 The following transactions occurred
during January:
• Jan 2: Issued 10,000 shares of common stock for $100,000 cash.
• Jan 5: Purchased equipment for $30,000 cash.
• Jan 8: Performed services on account for $15,000.
• Jan 12: Paid $2,400 for a 12-month insurance policy.
• Jan 15: Received $8,000 cash from customers for services previously performed on
account.
• Jan 20: Incurred $5,000 of salaries expense, to be paid next month.
• Jan 25: Declared and paid $1,000 cash dividend.
• Jan 31: Recorded depreciation on equipment of $500.
Q1: What is the correct journal entry to record the January 2 stock issuance? A. Debit Common
Stock $100,000; Credit Cash $100,000 B. Debit Cash $100,000; Credit Common Stock $100,000
, 2
C. Debit Cash $100,000; Credit Accounts Receivable $100,000 D. Debit Equipment $100,000;
Credit Common Stock $100,000
Correct Answer: B [CORRECT]
Rationale: Cash is debited (asset increase) and Common Stock is credited (equity increase). This
follows the double-entry system and GAAP equity recording standards.
Q2: What is the correct journal entry to record the January 5 equipment purchase? A. Debit
Equipment $30,000; Credit Accounts Payable $30,000 B. Debit Equipment $30,000; Credit Cash
$30,000 C. Debit Cash $30,000; Credit Equipment $30,000 D. Debit Equipment Expense
$30,000; Credit Cash $30,000
Correct Answer: B [CORRECT]
Rationale: Equipment (asset) is debited for increase; Cash (asset) is credited for decrease.
Equipment is capitalized, not expensed, per GAAP matching principle.
Q3: What is the correct journal entry to record the January 8 services performed on account? A.
Debit Cash $15,000; Credit Service Revenue $15,000 B. Debit Accounts Receivable $15,000;
Credit Service Revenue $15,000 C. Debit Service Revenue $15,000; Credit Accounts Receivable
$15,000 D. Debit Accounts Payable $15,000; Credit Service Revenue $15,000
Correct Answer: B [CORRECT]
Rationale: Revenue is recognized when earned (accrual basis). Accounts Receivable is debited
(asset increase) and Service Revenue is credited (revenue increase).
Q4: What is the correct journal entry to record the January 12 insurance policy purchase? A.
Debit Insurance Expense $2,400; Credit Cash $2,400 B. Debit Prepaid Insurance $2,400; Credit
Cash $2,400 C. Debit Cash $2,400; Credit Prepaid Insurance $2,400 D. Debit Insurance Expense
$200; Credit Cash $2,400
Correct Answer: B [CORRECT]
Rationale: A 12-month prepaid policy is an asset (Prepaid Insurance) until consumed. Expensing
immediately violates the matching principle under GAAP.
Q5: What is the correct journal entry to record the January 20 salaries incurred but not yet
paid? A. Debit Salaries Expense $5,000; Credit Salaries Payable $5,000 B. Debit Salaries Payable
$5,000; Credit Salaries Expense $5,000 C. Debit Salaries Expense $5,000; Credit Cash $5,000 D.
Debit Cash $5,000; Credit Salaries Expense $5,000
Correct Answer: A [CORRECT]
