BUSM 2020 Final Verified Exam Questions and Answers Latest update
2026/2027
Question:
1. Accounting Equa- Assets = Liabilities + Stockholders' Equity. tion
Answer:
Question:
2. Sign Discipline
Answer:
When thinking about a transaction, answer: (i) Which specific accounts are hit? (ii) For each, is it ‘or
“?
Question:
3. Contra Accounts
Answer:
Accounts that offset other accounts, such as Accumulated Depreciation and Allowance for
Uncollectible Accounts.
Question:
4. Accruals
Answer:
Recognize revenue or expenses before cash moves.
Question:
5. Accrued Revenue Dr A/R, Cr Revenue; later Dr Cash, Cr A/R.
Answer:
Question:
6. Accrued Expense Dr Expense, Cr Payable; later Dr Payable, Cr Cash.
Answer:
, Question:
7. Deferrals
Answer:
Cash moves before recognition.
Question:
8. Deferred Revenue
Answer:
Receive cash, set up liability; earn it later.
Question:
9. Prepaid Expense Pay cash, set up asset; expense it as used.
Answer:
Question:
10. Depreciation
Answer:
Cost allocation of long-lived tangible assets.
Question:
11. Straight-Line Depreciation
Answer:
Annual Depreciation = (Cost − Residual) ÷ Useful life; monthly = annual ÷ 12.
Question:
12. Book Value
Answer:
Cost − Accumulated Depreciation.
Question:
13. Disposal of Long-Lived Assets
Answer:
Sale
2026/2027
Question:
1. Accounting Equa- Assets = Liabilities + Stockholders' Equity. tion
Answer:
Question:
2. Sign Discipline
Answer:
When thinking about a transaction, answer: (i) Which specific accounts are hit? (ii) For each, is it ‘or
“?
Question:
3. Contra Accounts
Answer:
Accounts that offset other accounts, such as Accumulated Depreciation and Allowance for
Uncollectible Accounts.
Question:
4. Accruals
Answer:
Recognize revenue or expenses before cash moves.
Question:
5. Accrued Revenue Dr A/R, Cr Revenue; later Dr Cash, Cr A/R.
Answer:
Question:
6. Accrued Expense Dr Expense, Cr Payable; later Dr Payable, Cr Cash.
Answer:
, Question:
7. Deferrals
Answer:
Cash moves before recognition.
Question:
8. Deferred Revenue
Answer:
Receive cash, set up liability; earn it later.
Question:
9. Prepaid Expense Pay cash, set up asset; expense it as used.
Answer:
Question:
10. Depreciation
Answer:
Cost allocation of long-lived tangible assets.
Question:
11. Straight-Line Depreciation
Answer:
Annual Depreciation = (Cost − Residual) ÷ Useful life; monthly = annual ÷ 12.
Question:
12. Book Value
Answer:
Cost − Accumulated Depreciation.
Question:
13. Disposal of Long-Lived Assets
Answer:
Sale
