ACC 1O1/102/202
ACC/FIN/110.
Accounting
CPA 2026/2027 BUSINESS
, ACC 101 Final Exam questions
with correct answers
2026/2027 Edition Graded A+
Financial accounting is often referred to as a:
Language of business
3 multiple choice options
In what order are the following financial statements prepared?
Income Statement, Statement of Stockholders Equity, Balance Sheet
3 multiple choice options
Fundamental qualitative characteristics of accounting information are:
Faithful representation and relevance
3 multiple choice options
The body of rules and procedures that guide the measurement and
communication of financial accounting information in the United
States is known as:
GAAP
3 multiple choice options
Financial activities include:
Issuing common stock to stockholders
,3 multiple choice options
One disadvantage of the corporate form of business is:
Double taxation
3 multiple choice options
Financial accounting serves which primary function(s)?
I. Measures business activities.
II. Communicates business activities to interested parties.
III. Makes business decisions on behalf of interested parties.
I and II
3 multiple choice options
Which of the following represents an obligation of the company?
Liabilities
3 multiple choice options
Consider the following account balances of the Shattuck Law Firm at
the end of the year:
Accounts Payable 4,400
Salaries Expense 12,800
Cash 1,700
Common Stock 2,400
Service Revenue 8,300
Supplies 4,300
Retained Earnings 1,100
Utilities Expense 5,000
How many of these accounts would appear in Shattuck's year-end
balance sheet?
5
, 3 multiple choice options
Which financial statement shows a company's inflows and outflows of
cash?
Statement of Cash Flows
3 multiple choice options
Which of the following best describes auditors with regards to their
role in financial reporting?
Independent party hired by management to express a professional
opinion of the extent to which the company's financial reporting is in
compliance with generally accepted accounting principles
3 multiple choice options
Expenses represent:
Costs of providing products or services to customers.
3 multiple choice options
Which of the following is not reported in the balance sheet?
Revenues
3 multiple choice options
Sales of products or services are referred to as:
Revenues
3 multiple choice options
Liabilities represent:
Amounts owed to creditors
3 multiple choice options
ACC/FIN/110.
Accounting
CPA 2026/2027 BUSINESS
, ACC 101 Final Exam questions
with correct answers
2026/2027 Edition Graded A+
Financial accounting is often referred to as a:
Language of business
3 multiple choice options
In what order are the following financial statements prepared?
Income Statement, Statement of Stockholders Equity, Balance Sheet
3 multiple choice options
Fundamental qualitative characteristics of accounting information are:
Faithful representation and relevance
3 multiple choice options
The body of rules and procedures that guide the measurement and
communication of financial accounting information in the United
States is known as:
GAAP
3 multiple choice options
Financial activities include:
Issuing common stock to stockholders
,3 multiple choice options
One disadvantage of the corporate form of business is:
Double taxation
3 multiple choice options
Financial accounting serves which primary function(s)?
I. Measures business activities.
II. Communicates business activities to interested parties.
III. Makes business decisions on behalf of interested parties.
I and II
3 multiple choice options
Which of the following represents an obligation of the company?
Liabilities
3 multiple choice options
Consider the following account balances of the Shattuck Law Firm at
the end of the year:
Accounts Payable 4,400
Salaries Expense 12,800
Cash 1,700
Common Stock 2,400
Service Revenue 8,300
Supplies 4,300
Retained Earnings 1,100
Utilities Expense 5,000
How many of these accounts would appear in Shattuck's year-end
balance sheet?
5
, 3 multiple choice options
Which financial statement shows a company's inflows and outflows of
cash?
Statement of Cash Flows
3 multiple choice options
Which of the following best describes auditors with regards to their
role in financial reporting?
Independent party hired by management to express a professional
opinion of the extent to which the company's financial reporting is in
compliance with generally accepted accounting principles
3 multiple choice options
Expenses represent:
Costs of providing products or services to customers.
3 multiple choice options
Which of the following is not reported in the balance sheet?
Revenues
3 multiple choice options
Sales of products or services are referred to as:
Revenues
3 multiple choice options
Liabilities represent:
Amounts owed to creditors
3 multiple choice options
