ACC 221 ACTUAL FINAL EXAMS ALL QUESTIONS
AND ANSWERS SURE A+
✔✔The process in which temporary accounts are reduced to zero balances and
transferred to retained earnings is the______ process.
Multiple choice question. - ✔✔closing
✔✔Current Liabilities - ✔✔liabilities due within a short time, usually within a year
✔✔Cash Basis Method - ✔✔A method of accounting in which income and expenses are
recorded at the time they are paid, rather than when they are incurred.
✔✔Cash basis accounting measures income based on
operating, investing, and financing activities.
cash receipts and cash disbursements.
revenue recognition principals.
matching cash to assets purchased. - ✔✔cash receipts and cash disbursements.
✔✔The adjusting journal entry required when deferred revenue is recognized includes a
__________ entry to a liability. - ✔✔debit
, ✔✔The statement of shareholders' equity discloses the changes in the shareholder
equity accounts during the period from: (Select all that apply.)
investments by owners
other comprehensive income
distributions to owners
assets and liabilities
property, plant, and equipment
net income - ✔✔investments by owners
other comprehensive income
distributions to owners
net income
✔✔An informal tool used to organize the accounting information needed to prepare
adjusting and closing entries and the financial statements is a(n) - ✔✔worksheet
✔✔True or false: If a company makes end-of-year accruals, it must use reversing
entries. - ✔✔False: Reversing entries are not required. However, if they are not used,
then the accountant must remember to debit and credit the proper accounts in the
subsequent year's entries.
✔✔General Ledger - ✔✔A ledger that contains all asset, liability, stockholders' equity,
revenue, and expense accounts (needed for financial statements)
✔✔Subsidairy ledger - ✔✔A ledger with detailed data that is summarized in a controlling
account in the general ledger.
✔✔Which of the following accounts would most likely use a subsidiary ledger?
Common stock
Retained earnings
Accrued expenses
Accounts receivable - ✔✔Accounts receivable
✔✔Accrual Basis Accounting - ✔✔measures an entity's accomplishments and resource
sacrifices during the period, regardless of when cash is received or paid
✔✔special journal - ✔✔A special journal designed to accumulate data about only one
kind of business transaction. for example, sales journals or purchase journals
✔✔On October 1, Year 1, Swift Corporation received $1,200 from customers for
services to be performed evenly over the next 12 months. Swift recorded the original
transaction in a balance sheet account. The adjusting journal entry on December 31,
Year 1, will include which of the following entries?
Credit deferred revenue $1,200.
Debit revenue $300.
AND ANSWERS SURE A+
✔✔The process in which temporary accounts are reduced to zero balances and
transferred to retained earnings is the______ process.
Multiple choice question. - ✔✔closing
✔✔Current Liabilities - ✔✔liabilities due within a short time, usually within a year
✔✔Cash Basis Method - ✔✔A method of accounting in which income and expenses are
recorded at the time they are paid, rather than when they are incurred.
✔✔Cash basis accounting measures income based on
operating, investing, and financing activities.
cash receipts and cash disbursements.
revenue recognition principals.
matching cash to assets purchased. - ✔✔cash receipts and cash disbursements.
✔✔The adjusting journal entry required when deferred revenue is recognized includes a
__________ entry to a liability. - ✔✔debit
, ✔✔The statement of shareholders' equity discloses the changes in the shareholder
equity accounts during the period from: (Select all that apply.)
investments by owners
other comprehensive income
distributions to owners
assets and liabilities
property, plant, and equipment
net income - ✔✔investments by owners
other comprehensive income
distributions to owners
net income
✔✔An informal tool used to organize the accounting information needed to prepare
adjusting and closing entries and the financial statements is a(n) - ✔✔worksheet
✔✔True or false: If a company makes end-of-year accruals, it must use reversing
entries. - ✔✔False: Reversing entries are not required. However, if they are not used,
then the accountant must remember to debit and credit the proper accounts in the
subsequent year's entries.
✔✔General Ledger - ✔✔A ledger that contains all asset, liability, stockholders' equity,
revenue, and expense accounts (needed for financial statements)
✔✔Subsidairy ledger - ✔✔A ledger with detailed data that is summarized in a controlling
account in the general ledger.
✔✔Which of the following accounts would most likely use a subsidiary ledger?
Common stock
Retained earnings
Accrued expenses
Accounts receivable - ✔✔Accounts receivable
✔✔Accrual Basis Accounting - ✔✔measures an entity's accomplishments and resource
sacrifices during the period, regardless of when cash is received or paid
✔✔special journal - ✔✔A special journal designed to accumulate data about only one
kind of business transaction. for example, sales journals or purchase journals
✔✔On October 1, Year 1, Swift Corporation received $1,200 from customers for
services to be performed evenly over the next 12 months. Swift recorded the original
transaction in a balance sheet account. The adjusting journal entry on December 31,
Year 1, will include which of the following entries?
Credit deferred revenue $1,200.
Debit revenue $300.
