ACC 2101 Final Exam Quiz Answers
2025/2026 already passed
After the Second STEP in the Operating Cycle the firm has? - ANS ✔✔Account Receivable
In Purchase or Manufacture in the operating cycle, what happens to cash? - ANS ✔✔Decreases
The Operating cycle starts with? - ANS ✔✔Cash
The 3rd step in the operating cycle is called? - ANS ✔✔Collection
For which step (1,2,3,4, or 5) in the Operating cycle is there a difference between manufacturers
and retailers? - ANS ✔✔1
The second step in the Operating Cycle is called? - ANS ✔✔Sale
After the first STEP in the Operating Cycle, the company has? - ANS ✔✔Inventory
During Collection in the operating cycle, what happens to cash? - ANS ✔✔Increases
After the 3rd step in the Operating Cycle, the firm has? - ANS ✔✔Cash
During a Sale in the operating cycle, what happens to cash? - ANS ✔✔Stays the Same
,The marketing department is involved in which step (1,2,3,4 or 5) in the Operating cycle? - ANS
✔✔2
Usually we measure A/R at - ANS ✔✔Benefit Value
Usually we pick up Income at: - ANS ✔✔Point of Sale
Managerial Accounting is done for whom - ANS ✔✔Internal Managers
What is the Sacrifice Value of an Asset? - ANS ✔✔The amount of Cash the business paid for an
asset.
In the lecture what is the Sacrifice value of the A/R? - ANS ✔✔$5
The Trueblood Criterion is used by - ANS ✔✔Accountants
For most businesses what is the critical event? - ANS ✔✔Sale of Inventory
Financial Accounting is done for whom - ANS ✔✔Actual Investors
Potential Investors
Actual Creditors
Potential Creditors
In Cash Flow Reporting what is the income at the time of collection of the A/R? - ANS ✔✔$8
In the lecture what is the Sacrifice value of the Pen? - ANS ✔✔$5
,In Cash Flow reporting A/R is measured at - ANS ✔✔$0
Explain the Trueblood Criterion - ANS ✔✔The Trueblood Criterion is the process of predicting
future cashflows. In the Trueblood Criterion, we use past incomes to predict the future cashflow
of the firm. After we predict the future cashflow of the firm, we predict the future cashflow to
the user.
Income in the operating cycle equals - ANS ✔✔Benefit Value Minus Sacrifice Value
Allocation is primarily as issue in - ANS ✔✔Measuring Income
Duality of Asset Valuation is primarily as issue in - ANS ✔✔Measuring Assets
What is usually a better predictor of future cash flow to the firm? - ANS ✔✔Past Income
Usually we measure Inventory at - ANS ✔✔Sacrifice Value
What is the Benefit Value of an Asset? - ANS ✔✔The amount of Cash the business will receive
for the asset.
In the lecture what is the Benefit value of the A/R? - ANS ✔✔$8
In Cash Flow Reporting what is the income at the acquisition of Inventory - ANS ✔✔Loss of $5
What is the relationship between Income Measurement and Asset Valuation? - ANS ✔✔We pick
up Income when we switch from Sacrifice Value to Benefit Value.
In the lecture what is the Benefit value of the Pen? - ANS ✔✔$8
, In Cash Flow reporting inventory is measured at - ANS ✔✔$0
When Managers report they - ANS ✔✔Sometimes like to look good, and sometimes like to look
bad
Tax Accounting is done for whom - ANS ✔✔the IRS
In Cash Flow Reporting what is the income at the point of sale? - ANS ✔✔$0
One of the three condition of an asset is that an accountant can _____________ the asset. -
ANS ✔✔measure
The Basic Accounting Equation: ____________ = _______________ + ______________
______________ (4 words) - ANS ✔✔Assets Liabilities Owners' Equity
Business in four words: - ANS ✔✔Buy low sell high
In a three line heading, the third line is the: - ANS ✔✔Time period of the statement
Financial Accounting in 3 words (second word is and) - ANS ✔✔Measure and Communicate
Current Assets are Assets that will be gone by the end of the ____________ - ANS ✔✔year
In a three line heading, the first line is the: - ANS ✔✔Company name
Owners' Equity is - ANS ✔✔Just a number, not a thing
2025/2026 already passed
After the Second STEP in the Operating Cycle the firm has? - ANS ✔✔Account Receivable
In Purchase or Manufacture in the operating cycle, what happens to cash? - ANS ✔✔Decreases
The Operating cycle starts with? - ANS ✔✔Cash
The 3rd step in the operating cycle is called? - ANS ✔✔Collection
For which step (1,2,3,4, or 5) in the Operating cycle is there a difference between manufacturers
and retailers? - ANS ✔✔1
The second step in the Operating Cycle is called? - ANS ✔✔Sale
After the first STEP in the Operating Cycle, the company has? - ANS ✔✔Inventory
During Collection in the operating cycle, what happens to cash? - ANS ✔✔Increases
After the 3rd step in the Operating Cycle, the firm has? - ANS ✔✔Cash
During a Sale in the operating cycle, what happens to cash? - ANS ✔✔Stays the Same
,The marketing department is involved in which step (1,2,3,4 or 5) in the Operating cycle? - ANS
✔✔2
Usually we measure A/R at - ANS ✔✔Benefit Value
Usually we pick up Income at: - ANS ✔✔Point of Sale
Managerial Accounting is done for whom - ANS ✔✔Internal Managers
What is the Sacrifice Value of an Asset? - ANS ✔✔The amount of Cash the business paid for an
asset.
In the lecture what is the Sacrifice value of the A/R? - ANS ✔✔$5
The Trueblood Criterion is used by - ANS ✔✔Accountants
For most businesses what is the critical event? - ANS ✔✔Sale of Inventory
Financial Accounting is done for whom - ANS ✔✔Actual Investors
Potential Investors
Actual Creditors
Potential Creditors
In Cash Flow Reporting what is the income at the time of collection of the A/R? - ANS ✔✔$8
In the lecture what is the Sacrifice value of the Pen? - ANS ✔✔$5
,In Cash Flow reporting A/R is measured at - ANS ✔✔$0
Explain the Trueblood Criterion - ANS ✔✔The Trueblood Criterion is the process of predicting
future cashflows. In the Trueblood Criterion, we use past incomes to predict the future cashflow
of the firm. After we predict the future cashflow of the firm, we predict the future cashflow to
the user.
Income in the operating cycle equals - ANS ✔✔Benefit Value Minus Sacrifice Value
Allocation is primarily as issue in - ANS ✔✔Measuring Income
Duality of Asset Valuation is primarily as issue in - ANS ✔✔Measuring Assets
What is usually a better predictor of future cash flow to the firm? - ANS ✔✔Past Income
Usually we measure Inventory at - ANS ✔✔Sacrifice Value
What is the Benefit Value of an Asset? - ANS ✔✔The amount of Cash the business will receive
for the asset.
In the lecture what is the Benefit value of the A/R? - ANS ✔✔$8
In Cash Flow Reporting what is the income at the acquisition of Inventory - ANS ✔✔Loss of $5
What is the relationship between Income Measurement and Asset Valuation? - ANS ✔✔We pick
up Income when we switch from Sacrifice Value to Benefit Value.
In the lecture what is the Benefit value of the Pen? - ANS ✔✔$8
, In Cash Flow reporting inventory is measured at - ANS ✔✔$0
When Managers report they - ANS ✔✔Sometimes like to look good, and sometimes like to look
bad
Tax Accounting is done for whom - ANS ✔✔the IRS
In Cash Flow Reporting what is the income at the point of sale? - ANS ✔✔$0
One of the three condition of an asset is that an accountant can _____________ the asset. -
ANS ✔✔measure
The Basic Accounting Equation: ____________ = _______________ + ______________
______________ (4 words) - ANS ✔✔Assets Liabilities Owners' Equity
Business in four words: - ANS ✔✔Buy low sell high
In a three line heading, the third line is the: - ANS ✔✔Time period of the statement
Financial Accounting in 3 words (second word is and) - ANS ✔✔Measure and Communicate
Current Assets are Assets that will be gone by the end of the ____________ - ANS ✔✔year
In a three line heading, the first line is the: - ANS ✔✔Company name
Owners' Equity is - ANS ✔✔Just a number, not a thing
