ACCT 6100 Midterm Exam Questions with Correct Answers Latest Update 2025/2026
Which of the following statements is true? - Answers Stockholders' equity accounts normally
have credit balance and are increased with credits.
Which of the following accounts would not be reported on the balance sheet? - Answers
Dividends
Which of the following is NOT a liability on the balance sheet? - Answers Retained Earnings
Which of the following is considered to be an expense on the income statement? - Answers
Cost of goods sold
Which of the following best describes assets? - Answers They are considered to be the
economic resources of the business.
Which of the following accounts would be reported as assets on the balance sheet? - Answers
Cash, accounts receivable, and inventory
Which of the following is the amount of revenue reported on the income statement of a retail
company? - Answers Both cash and credit sales for the period.
What are the categories of cash flows that appear on a statement of cash flows? - Answers
Cash flows from operating, investing, and financing activities.
Selling stock to investors for cash would result in which of the following? - Answers A debit to
cash and a credit to contributed capital.
Borrowing cash from a bank would result in which of the following? - Answers A debit to cash
and a credit to notes payable.
Which of the following is not included with operating expenses on the income sheet? - Answers
Interest Expense
Which of the following accounts should be closed at the end of an accounting period? - Answers
Interest expense (expense and revenue accounts)
A company receives a $50k cash deposit from a customer on Oct. 15th, but will not deliver
goods until Nov. 20th. Which of the following statements is true? - Answers A liability will be
reported on the balance sheet at the end of October.
Which of the following businesses would most likely NOT report cost of goods sold on their
income statement? - Answers A law firm
Journal entry for cash received prior to delivery of the service: - Answers Debit cash, credit
unearned revenues
Which of the following statements is true? - Answers Stockholders' equity accounts normally
have credit balance and are increased with credits.
Which of the following accounts would not be reported on the balance sheet? - Answers
Dividends
Which of the following is NOT a liability on the balance sheet? - Answers Retained Earnings
Which of the following is considered to be an expense on the income statement? - Answers
Cost of goods sold
Which of the following best describes assets? - Answers They are considered to be the
economic resources of the business.
Which of the following accounts would be reported as assets on the balance sheet? - Answers
Cash, accounts receivable, and inventory
Which of the following is the amount of revenue reported on the income statement of a retail
company? - Answers Both cash and credit sales for the period.
What are the categories of cash flows that appear on a statement of cash flows? - Answers
Cash flows from operating, investing, and financing activities.
Selling stock to investors for cash would result in which of the following? - Answers A debit to
cash and a credit to contributed capital.
Borrowing cash from a bank would result in which of the following? - Answers A debit to cash
and a credit to notes payable.
Which of the following is not included with operating expenses on the income sheet? - Answers
Interest Expense
Which of the following accounts should be closed at the end of an accounting period? - Answers
Interest expense (expense and revenue accounts)
A company receives a $50k cash deposit from a customer on Oct. 15th, but will not deliver
goods until Nov. 20th. Which of the following statements is true? - Answers A liability will be
reported on the balance sheet at the end of October.
Which of the following businesses would most likely NOT report cost of goods sold on their
income statement? - Answers A law firm
Journal entry for cash received prior to delivery of the service: - Answers Debit cash, credit
unearned revenues
