Saylor Academy: Intro to Financial
Accounting Exam Questions and Answers
with Verified Solutions | Latest Updated 2026
Ladron Engineering produced the TRY $2,000, $1,000
following partial trial balance NOT 1,500, $1,500
before
making adjusting entries.
Following the production of this
trial
balance, Ladron made adjusting
entries for the following:
· Two-thirds of the supplies were
still
available in the supply room.
· Ladron had performed services
to
earn one half of the unearned
fees.
· Ladron's new employee worked
the
last five days of the month for
$100/day; payroll would be issued
on
the 5th day of August.
AFTER THE NECESSARY
ADJUSTING
ENTRIES, WHAT WILL BE THE
BALANCES IN SUPPLIES AND
SUPPLIES EXPENSE,
RESPECTIVELY?
IMAGE
,Comparability Information has this characteristic when it
reveals
differences and similarities that are real
and are not
the result of differing accounting
treatments
Completeness Requires disclosure of all significant
information in
a way that aids understanding and is not
misleading
Consistency States that once an accounting principle or
method
is adopted, it should be consistently
followed in
future accounting periods and only
changed if the
new version in some way improves
reported
financial results
Feedback value When information reveals the relative
success of
users in predicting outcomes
Full disclosure principle Information important enough to influence
the
decision of an informed user of the
financial
statements should be published
, Gain and loss recognition principle Gains may be recorded only when
realized, but
losses should be recorded when they first
become
evident
Going-concern assumption A fundamental assumption under which
financial
statements are prepared; assumes a
business will
continue to operate in the foreseeable
future
without the need to liquidate the entity or
curtail its
operational activities. It is assumed that
the entity
will realize its assets and settle its
obligations in the
normal course of the business.
Matching principle Expenses should be recognized as they
are
incurred to produce revenues
Materiality The threshold at which missing or incorrect
information in financial statements is
considered to
have an impact on the decision making of
users.
Neutrality Requires accounting information to be free
of
measurement method bias
Accounting Exam Questions and Answers
with Verified Solutions | Latest Updated 2026
Ladron Engineering produced the TRY $2,000, $1,000
following partial trial balance NOT 1,500, $1,500
before
making adjusting entries.
Following the production of this
trial
balance, Ladron made adjusting
entries for the following:
· Two-thirds of the supplies were
still
available in the supply room.
· Ladron had performed services
to
earn one half of the unearned
fees.
· Ladron's new employee worked
the
last five days of the month for
$100/day; payroll would be issued
on
the 5th day of August.
AFTER THE NECESSARY
ADJUSTING
ENTRIES, WHAT WILL BE THE
BALANCES IN SUPPLIES AND
SUPPLIES EXPENSE,
RESPECTIVELY?
IMAGE
,Comparability Information has this characteristic when it
reveals
differences and similarities that are real
and are not
the result of differing accounting
treatments
Completeness Requires disclosure of all significant
information in
a way that aids understanding and is not
misleading
Consistency States that once an accounting principle or
method
is adopted, it should be consistently
followed in
future accounting periods and only
changed if the
new version in some way improves
reported
financial results
Feedback value When information reveals the relative
success of
users in predicting outcomes
Full disclosure principle Information important enough to influence
the
decision of an informed user of the
financial
statements should be published
, Gain and loss recognition principle Gains may be recorded only when
realized, but
losses should be recorded when they first
become
evident
Going-concern assumption A fundamental assumption under which
financial
statements are prepared; assumes a
business will
continue to operate in the foreseeable
future
without the need to liquidate the entity or
curtail its
operational activities. It is assumed that
the entity
will realize its assets and settle its
obligations in the
normal course of the business.
Matching principle Expenses should be recognized as they
are
incurred to produce revenues
Materiality The threshold at which missing or incorrect
information in financial statements is
considered to
have an impact on the decision making of
users.
Neutrality Requires accounting information to be free
of
measurement method bias
