ACC 101 Exam questions with
answers well rated A+
Monetary Unit Assumption - ANS✅✅Items not easily quantified in dollar terms are not reported in
the financial statements.
Faithful Representation - ANS✅✅information that is complete, neutral, and free from error
Economic Entity Assumption - ANS✅✅Personal transactions are not mixed with the company's
transactions.
Cost Constraint - ANS✅✅The cost to provide information should be weighed against the benefit
that users will gain from having the information available.
Consistency - ANS✅✅a company uses the same accounting principles and methods from year to
year
Historical Cost Principle - ANS✅✅Assets are recorded and reported at original purchase price.
Relevance - ANS✅✅Accounting information should help users predict future events, and should
confirm or correct prior expectations.
Periodicity Assumption - ANS✅✅that the life of a business can be divided into artificial time
periods and that useful reports covering those periods can be prepared for the business
Full Disclosure Principle - ANS✅✅The reporting of all information that would make a difference to
financial statement users.
Materiality - ANS✅✅the judgement concerning whether an item is large enough to matter to
decision makers
Going Concern Assumption - ANS✅✅Assumes a business will remain in operation for the
foreseeable future.
, Comparability - ANS✅✅different companies use the same accounting principles
J: Insurance expires at a rate of 320 per month - ANS✅✅DR Insurance Expense
CR Prepaid Insurance
J: supplies on hand totals $890 , when it was 2560 before adjusting entry - ANS✅✅DR supplies
expense
CR supplies
J: The equipment depreciates $170 per month - ANS✅✅DR depreciation expense
CR Accumulated Depreciation
J: During March, services performed are 2/5 of Unearned Service Revenue - ANS✅✅DR unearned
service revenue
CR service revenue
to record sale of merchandise - ANS✅✅Dr. accounts receivable or cash
Cr. sales revenue
to record the return of merchandise - ANS✅✅DR. COGS
CR. Inventory
DR. Sales returns and allowances
CR. accounts receivable
Who accounts for the goods in FOB shipping - ANS✅✅the buyer
who accounts for goods in FOB destination - ANS✅✅seller
all over the counter reciepts are entered into cash registers - ANS✅✅physical controls
All cashiers are bonded. - ANS✅✅human resource controls
answers well rated A+
Monetary Unit Assumption - ANS✅✅Items not easily quantified in dollar terms are not reported in
the financial statements.
Faithful Representation - ANS✅✅information that is complete, neutral, and free from error
Economic Entity Assumption - ANS✅✅Personal transactions are not mixed with the company's
transactions.
Cost Constraint - ANS✅✅The cost to provide information should be weighed against the benefit
that users will gain from having the information available.
Consistency - ANS✅✅a company uses the same accounting principles and methods from year to
year
Historical Cost Principle - ANS✅✅Assets are recorded and reported at original purchase price.
Relevance - ANS✅✅Accounting information should help users predict future events, and should
confirm or correct prior expectations.
Periodicity Assumption - ANS✅✅that the life of a business can be divided into artificial time
periods and that useful reports covering those periods can be prepared for the business
Full Disclosure Principle - ANS✅✅The reporting of all information that would make a difference to
financial statement users.
Materiality - ANS✅✅the judgement concerning whether an item is large enough to matter to
decision makers
Going Concern Assumption - ANS✅✅Assumes a business will remain in operation for the
foreseeable future.
, Comparability - ANS✅✅different companies use the same accounting principles
J: Insurance expires at a rate of 320 per month - ANS✅✅DR Insurance Expense
CR Prepaid Insurance
J: supplies on hand totals $890 , when it was 2560 before adjusting entry - ANS✅✅DR supplies
expense
CR supplies
J: The equipment depreciates $170 per month - ANS✅✅DR depreciation expense
CR Accumulated Depreciation
J: During March, services performed are 2/5 of Unearned Service Revenue - ANS✅✅DR unearned
service revenue
CR service revenue
to record sale of merchandise - ANS✅✅Dr. accounts receivable or cash
Cr. sales revenue
to record the return of merchandise - ANS✅✅DR. COGS
CR. Inventory
DR. Sales returns and allowances
CR. accounts receivable
Who accounts for the goods in FOB shipping - ANS✅✅the buyer
who accounts for goods in FOB destination - ANS✅✅seller
all over the counter reciepts are entered into cash registers - ANS✅✅physical controls
All cashiers are bonded. - ANS✅✅human resource controls
