Principles of Accounting
Final Exam 2026 | Study
Guide & Practice Q&A
Review and Rationales
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Updated 2026 Questions and Answers
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Rationales
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,The unadjusted trial balance for a prepaid rent shows a B
12,000 balance. At the end of this period, 7,000 rent has
been used. The adjusted trial balance for prepaid rent
shows what balance?
A: 7,000 Debit
B: 5,000 Debit
C: 5,000 credit
D: 7,000 Credit
A company bought a two year insurance policy on Aug. B
1st for 150 per month. No adjustments have been made
since then. What is the adjusting entry of Dec. 31 of this
year?
A: Debit prepaid insurance 150, Credit insurance
expense 150
B: Debit insurance expense 750, credit prepaid
insurance 750
C: Debit insurance expense 150, credit prepaid
insurance 150
D: debit prepaid insurance 750, credit insurance
expense 750
On the unadjusted trial balance, which accounts should B
have have their balance listed in the debit column?
A: Liabilities, revenue, common stock
B: Assets, dividends, and expenses
C: Assets, revenues, and dividends
D: Liabilities, revenues, and dividends
Which of the following is a true statement regarding the C
unearned revenue account?
A: Unearned revenue is accrued as the business
provides goods or services
B: unearned revenue is expensed as the business
provides goods or services
C: Unearned revenue decreases as the business
provides goods or services
D: unearned revenue increases as the business provides
goods or services
The account cash had a beginning balance of zero and B
the following changes: increase of 250, decrease of 75,
increase of 113, and a decrease of 35. The ending
balance is a:
A: Credit balance of 253
B: Debit balance of 253
C: debit balance of 363
D: credit balance of 110
The general ledger is arranged in what order? D
A: Chronological
B: normal credit balance accounts first
C: alphabetical order of the account names
D: account order
, Jill invested 25,000 in her business. the journal entry (for C
the business) would include a:
A: credit cash for 25,000 and a debit to common stock
for 25,000
B: Debit cash for 25,000 and a credit to dividends for
25,000
C: debit to cash for 25,000 and a credit to common
stock for 25,000
D: credit to cash for 25,000 and a debit to dividends for
25,000
What is the basic account equation? C
A: Revenue minus expenses equal net income
B: Debits equal credits
C: Assets equal liabilities plus owners equity
D: Beginning retained earnings plus net income minus
dividends equals ending retained earnings
Respectively, cash, rent expense, and accounts payable C
are:
A: All permanent accounts
B: permanent, temporary, and temporary accounts
C: permanent, temporary, and permanent accounts
D: Temporary, permanent, and temporary accounts
Total revenues of 6,500, total expenses of 3,500, and C
dividends of 500 were recorded for the month. What
was net income for this time period?
A: 6,000
B: 3,500
C: 3,000
D: 2,500
A T-account has a 759 credit balance. This account is C
most likely NOT:
A: Accounts payable
B: sales Revenue
C: accounts receivable
D: common stock
At the beginning of the period, the supplies account A
has a balance of 500. At the end of the period, the
balance was 275. Assuming the company made no
purchases, what is the adjusting entry?
A: Debit suppliers expense 225, credit supplies 225
B: debit supplies 225, credit supplies expense 225
C: debit supplies expense 275, credit supplies 275
D: debit supplies 275, credit supplies expense 275
A transaction is first recorded in which of the following C
accounting records?
A: general ledger
B: Trial balance
C: General journal
D: income statement
Final Exam 2026 | Study
Guide & Practice Q&A
Review and Rationales
|Graded A+ | Guaranteed
success|
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
,The unadjusted trial balance for a prepaid rent shows a B
12,000 balance. At the end of this period, 7,000 rent has
been used. The adjusted trial balance for prepaid rent
shows what balance?
A: 7,000 Debit
B: 5,000 Debit
C: 5,000 credit
D: 7,000 Credit
A company bought a two year insurance policy on Aug. B
1st for 150 per month. No adjustments have been made
since then. What is the adjusting entry of Dec. 31 of this
year?
A: Debit prepaid insurance 150, Credit insurance
expense 150
B: Debit insurance expense 750, credit prepaid
insurance 750
C: Debit insurance expense 150, credit prepaid
insurance 150
D: debit prepaid insurance 750, credit insurance
expense 750
On the unadjusted trial balance, which accounts should B
have have their balance listed in the debit column?
A: Liabilities, revenue, common stock
B: Assets, dividends, and expenses
C: Assets, revenues, and dividends
D: Liabilities, revenues, and dividends
Which of the following is a true statement regarding the C
unearned revenue account?
A: Unearned revenue is accrued as the business
provides goods or services
B: unearned revenue is expensed as the business
provides goods or services
C: Unearned revenue decreases as the business
provides goods or services
D: unearned revenue increases as the business provides
goods or services
The account cash had a beginning balance of zero and B
the following changes: increase of 250, decrease of 75,
increase of 113, and a decrease of 35. The ending
balance is a:
A: Credit balance of 253
B: Debit balance of 253
C: debit balance of 363
D: credit balance of 110
The general ledger is arranged in what order? D
A: Chronological
B: normal credit balance accounts first
C: alphabetical order of the account names
D: account order
, Jill invested 25,000 in her business. the journal entry (for C
the business) would include a:
A: credit cash for 25,000 and a debit to common stock
for 25,000
B: Debit cash for 25,000 and a credit to dividends for
25,000
C: debit to cash for 25,000 and a credit to common
stock for 25,000
D: credit to cash for 25,000 and a debit to dividends for
25,000
What is the basic account equation? C
A: Revenue minus expenses equal net income
B: Debits equal credits
C: Assets equal liabilities plus owners equity
D: Beginning retained earnings plus net income minus
dividends equals ending retained earnings
Respectively, cash, rent expense, and accounts payable C
are:
A: All permanent accounts
B: permanent, temporary, and temporary accounts
C: permanent, temporary, and permanent accounts
D: Temporary, permanent, and temporary accounts
Total revenues of 6,500, total expenses of 3,500, and C
dividends of 500 were recorded for the month. What
was net income for this time period?
A: 6,000
B: 3,500
C: 3,000
D: 2,500
A T-account has a 759 credit balance. This account is C
most likely NOT:
A: Accounts payable
B: sales Revenue
C: accounts receivable
D: common stock
At the beginning of the period, the supplies account A
has a balance of 500. At the end of the period, the
balance was 275. Assuming the company made no
purchases, what is the adjusting entry?
A: Debit suppliers expense 225, credit supplies 225
B: debit supplies 225, credit supplies expense 225
C: debit supplies expense 275, credit supplies 275
D: debit supplies 275, credit supplies expense 275
A transaction is first recorded in which of the following C
accounting records?
A: general ledger
B: Trial balance
C: General journal
D: income statement
