Principles of Accounting Final Exam (2024) || All Questions & Solutions (100% Correct)

Principles of Accounting Final Exam (2024) || All Questions & Solutions (100% Correct) Principles of Accounting Final Exam (2024) || All Questions & Solutions (100% Correct) The Matching principle in accounting requires the matching of: A: Revenue earned with the expenses incurred to produce revenue B: Revenue earned with the liabilities used to produce the revenue C: Revenue earned with the assets used to produce the revenue D: Revenue earned with the assets used less the liabilities incurred. - ANSWER - a Which of the following best defines a fiscal year? A: The final 12 month period in the life of a business B: Any consecutive 12 month period that a business adopts as its accounting year C: The first 12 month period in the life of a business D: The 12 month period from January through December - ANSWER - B Total revenues of 6,500, total expenses of 3,500 and dividends of 500 were recorded for the month. What as the net income for this time period? A: 3,500 B: 3,000 C: 2,500 D: 6,000 - ANSWER - B Which of the following accounts does no to onto the income statement? A: Sales Revenue B: Rent expense C: Insurance expense D: unearned revenue - ANSWER - D The unadjusted trial balance for a prepaid rent shows a 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 - ANSWER - B A company bought a two year insurance policy on Aug. 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 - ANSWER - B On the unadjusted trial balance, which accounts should 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 - ANSWER - B Which of the following is a true statement regarding the 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 - ANSWER - C The account cash had a beginning balance of zero and 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 - ANSWER - B