ACCOUNTING 101 FINAL EXAM STUDY GUIDE | FROM
QUESTION TO PERFECTION| STUDY WITH CONFIDENCE!
Course Code:
Course Title:
Programme:
Academic Year: 2026/2027.
Duration: 2 Hours.
Total Marks: 100%.
Candidate Instructions:
1) Write your Registration Number on every answer booklet used.
2) Answer ALL questions in Section A and ANY TWO (2) questions in Section B.
3) Read each question carefully before answering.
4) Begin each question on a new page.
5) The marks for each question are indicated in brackets.
6) This paper consists of several printed pages, including this page.
7) Ensure your copy is complete before the examination begins.
8) Unauthorized materials and communication with other candidates are not permitted.
Turn Over.
APPHIA – Crafted with Care and Precision for Academic Excellence.
1
, What is accounting?Answer: the action or process of keeping financial accounts
revenuesAnswer: inflows of assets resulting from the sale of goods and services
expensesAnswer: outflow of assets resulting from the sale of goods and services
internal userAnswer: managerial accounting
external userAnswer: financial accounting
who is responsible for GAAPAnswer: FASB
accounting equationAnswer: assets = liabilities + owners equity
international accounting standards board (IFRS) is responsible forAnswer: developing a single
set of worldwide accounting standards
These standards will help companies to reduce accounting costs, make it easier to acquire
foreign companies, and facilitate comparisons between foreign companiesAnswer: (IFRS)
international accounting standards board
primary objective of financial reportingAnswer: provide economic information to permit users
of the information to make informed decisions
what makes information relevantAnswer: it must be able to make a difference in a decision
assets are recorded at historical/original cost becauseAnswer: it is objective and verifiable
financial information should be understandable to whomAnswer: those willing to spend the
necessary time to understand it
balance sheetAnswer: lists assets, liabilities, and owner's equity
income statementAnswer: revenues minus expenses equal net income
net incomeAnswer: revenues - expenses
order of statement preparationAnswer: income statement, statement of retained earnings,
balance sheet and statement of cash flows
account and types of accountsAnswer: a record or statement of financial expenditure or receipts
relating to a particular period or purpose
real, personal, and nominal
how transactions affect the accounting equationAnswer: the balance is maintained because
every business transaction affects at least two of a company's accounts such as:
when a company borrows money from a bank
the company's assets will increase and its liabilities will increase by the same amount
left sideAnswer: debit
APPHIA – Crafted with Care and Precision for Academic Excellence.
2
QUESTION TO PERFECTION| STUDY WITH CONFIDENCE!
Course Code:
Course Title:
Programme:
Academic Year: 2026/2027.
Duration: 2 Hours.
Total Marks: 100%.
Candidate Instructions:
1) Write your Registration Number on every answer booklet used.
2) Answer ALL questions in Section A and ANY TWO (2) questions in Section B.
3) Read each question carefully before answering.
4) Begin each question on a new page.
5) The marks for each question are indicated in brackets.
6) This paper consists of several printed pages, including this page.
7) Ensure your copy is complete before the examination begins.
8) Unauthorized materials and communication with other candidates are not permitted.
Turn Over.
APPHIA – Crafted with Care and Precision for Academic Excellence.
1
, What is accounting?Answer: the action or process of keeping financial accounts
revenuesAnswer: inflows of assets resulting from the sale of goods and services
expensesAnswer: outflow of assets resulting from the sale of goods and services
internal userAnswer: managerial accounting
external userAnswer: financial accounting
who is responsible for GAAPAnswer: FASB
accounting equationAnswer: assets = liabilities + owners equity
international accounting standards board (IFRS) is responsible forAnswer: developing a single
set of worldwide accounting standards
These standards will help companies to reduce accounting costs, make it easier to acquire
foreign companies, and facilitate comparisons between foreign companiesAnswer: (IFRS)
international accounting standards board
primary objective of financial reportingAnswer: provide economic information to permit users
of the information to make informed decisions
what makes information relevantAnswer: it must be able to make a difference in a decision
assets are recorded at historical/original cost becauseAnswer: it is objective and verifiable
financial information should be understandable to whomAnswer: those willing to spend the
necessary time to understand it
balance sheetAnswer: lists assets, liabilities, and owner's equity
income statementAnswer: revenues minus expenses equal net income
net incomeAnswer: revenues - expenses
order of statement preparationAnswer: income statement, statement of retained earnings,
balance sheet and statement of cash flows
account and types of accountsAnswer: a record or statement of financial expenditure or receipts
relating to a particular period or purpose
real, personal, and nominal
how transactions affect the accounting equationAnswer: the balance is maintained because
every business transaction affects at least two of a company's accounts such as:
when a company borrows money from a bank
the company's assets will increase and its liabilities will increase by the same amount
left sideAnswer: debit
APPHIA – Crafted with Care and Precision for Academic Excellence.
2
