CSUF ACCT 201A (Hoffman) Final Exam
Questions And Answers
Generally accepted accounting principles are: -
correct answer ✅a set of standards and rules that are recognized
as a general guide for financial reporting.
Which is an advantage of corporations relative to partnerships and
sole proprietorships? -
correct answer ✅Reduced legal liability for investors.
Kam Company has the following units and costs.
Inventory, Jan. 1 8,000 $11
Purchase, Jun. 19 13,000 $12
Purchase, Nov. 8 5,000 $13
If 9,000 units are on hand at December 31, what is the cost of the
ending inventory under FIFO? -
correct answer ✅$113,000
(total 309,000 - ((8,000*11)+(remaining 9,000*12))
To record the sale of goods for cash in a perpetual inventory
system: -
correct answer ✅two journal entries are necessary: one to record
the receipt of cash and sales revenue, and one to record the cost of
goods sold and reduction of inventory.
,CSUF ACCT 201A (Hoffman) Final Exam
Questions And Answers
Which is not one of the three primary business activities? -
correct answer ✅Advertising.
A trial balance: -
correct answer ✅will not balance if a correct journal entry is
posted twice.
Which accounts normally have debit balances? -
correct answer ✅Assets, dividends, and expenses.
Which account will have a zero balance after a company has
journalized and posted closing entries? -
correct answer ✅Service Revenue.
Adjustments for prepaid expenses: -
correct answer ✅decrease assets and increase expenses.
Queenan Company computes depreciation on delivery equipment
at $1,000 for the month of June. The adjusting entry to record this
depreciation is as follows: -
,CSUF ACCT 201A (Hoffman) Final Exam
Questions And Answers
correct answer ✅Depreciation Expense dr 1,000. Accumulated
Depreciation-Equipment cr 1,000
A ledger: -
correct answer ✅is a record of all accounts maintained by a
company and their amounts.
Net income will result during a time period when: -
correct answer ✅revenues exceed expenses.
Davidson Electronics has the following:
Inventory, Jan. 1 5,000 $8
Purchase, April 2 15,000 $10
Purchase, Aug. 28 20,000 $12
If Davidson has 7,000 units on hand at December 31, the cost of
ending inventory under the average-cost method is: -
correct answer ✅$75,250
40,000+ 150,000+ 240,000 = 430,000
40,000 units
430,000/40,000 = 10.75
10.75 * 7,000
, CSUF ACCT 201A (Hoffman) Final Exam
Questions And Answers
The element of a corporation's annual report that describes the
corporation's accounting methods is: -
correct answer ✅notes to the financial statements.
Gross profit will result if: -
correct answer ✅net sales are greater than cost of goods sold.
As a result of a thorough physical inventory, Railway Company
determined that it had inventory worth $180,000 at December 31,
2022. This count did not take into consideration the following facts.
Rogers Consignment Store currently has goods worth $35,000 on its
sales floor that belong to Railway but are being sold on
consignment by Rogers. The selling price of these goods is $50,000.
Railway purchased $13,000 of goods that were shipped on
December 27, FOB destination, that will be received by Railway on
January 3. Determine the correct amount of inventory that Railway
should report. -
correct answer ✅$215,000
(180,000+ 35,000)
Questions And Answers
Generally accepted accounting principles are: -
correct answer ✅a set of standards and rules that are recognized
as a general guide for financial reporting.
Which is an advantage of corporations relative to partnerships and
sole proprietorships? -
correct answer ✅Reduced legal liability for investors.
Kam Company has the following units and costs.
Inventory, Jan. 1 8,000 $11
Purchase, Jun. 19 13,000 $12
Purchase, Nov. 8 5,000 $13
If 9,000 units are on hand at December 31, what is the cost of the
ending inventory under FIFO? -
correct answer ✅$113,000
(total 309,000 - ((8,000*11)+(remaining 9,000*12))
To record the sale of goods for cash in a perpetual inventory
system: -
correct answer ✅two journal entries are necessary: one to record
the receipt of cash and sales revenue, and one to record the cost of
goods sold and reduction of inventory.
,CSUF ACCT 201A (Hoffman) Final Exam
Questions And Answers
Which is not one of the three primary business activities? -
correct answer ✅Advertising.
A trial balance: -
correct answer ✅will not balance if a correct journal entry is
posted twice.
Which accounts normally have debit balances? -
correct answer ✅Assets, dividends, and expenses.
Which account will have a zero balance after a company has
journalized and posted closing entries? -
correct answer ✅Service Revenue.
Adjustments for prepaid expenses: -
correct answer ✅decrease assets and increase expenses.
Queenan Company computes depreciation on delivery equipment
at $1,000 for the month of June. The adjusting entry to record this
depreciation is as follows: -
,CSUF ACCT 201A (Hoffman) Final Exam
Questions And Answers
correct answer ✅Depreciation Expense dr 1,000. Accumulated
Depreciation-Equipment cr 1,000
A ledger: -
correct answer ✅is a record of all accounts maintained by a
company and their amounts.
Net income will result during a time period when: -
correct answer ✅revenues exceed expenses.
Davidson Electronics has the following:
Inventory, Jan. 1 5,000 $8
Purchase, April 2 15,000 $10
Purchase, Aug. 28 20,000 $12
If Davidson has 7,000 units on hand at December 31, the cost of
ending inventory under the average-cost method is: -
correct answer ✅$75,250
40,000+ 150,000+ 240,000 = 430,000
40,000 units
430,000/40,000 = 10.75
10.75 * 7,000
, CSUF ACCT 201A (Hoffman) Final Exam
Questions And Answers
The element of a corporation's annual report that describes the
corporation's accounting methods is: -
correct answer ✅notes to the financial statements.
Gross profit will result if: -
correct answer ✅net sales are greater than cost of goods sold.
As a result of a thorough physical inventory, Railway Company
determined that it had inventory worth $180,000 at December 31,
2022. This count did not take into consideration the following facts.
Rogers Consignment Store currently has goods worth $35,000 on its
sales floor that belong to Railway but are being sold on
consignment by Rogers. The selling price of these goods is $50,000.
Railway purchased $13,000 of goods that were shipped on
December 27, FOB destination, that will be received by Railway on
January 3. Determine the correct amount of inventory that Railway
should report. -
correct answer ✅$215,000
(180,000+ 35,000)
