BU.920.602
Accounting Foundations
Final Assessment (Qns & Ans)
2025
General Instructions
1. Read All Questions Carefully: Make sure you understand each question before
ANSing.
2. Time Management: You have a specific amount of time to complete the exam.
Keep an eye on the clock and pace yourself.
3. Allowed Materials: Only use materials that are explicitly allowed. Unauthorized
materials can lead to disqualification.
4. ANS Format: Follow the required format for your ANSs. For example, multiple-
choice questions might need you to select the best ANS, while essay questions
require detailed responses.
5. Academic Integrity: Adhere to the university's honor code. Any form of cheating or
plagiarism is strictly prohibited.
6. Technical Requirements: Ensure your computer and internet connection are
stable. For online exams, you might need a webcam and microphone for proctoring
purposes.
7. Submission: Submit your ANSs before the time expires. Late submissions might
not be accepted.
©2024/2025
,1. Which of the following accounting standards is primarily used
in the United States?
A) IFRS
B) GAAP
C) ASC
D) IAS
ANS: B) GAAP
Rationale: Generally Accepted Accounting Principles
(GAAP) is the primary framework used for financial reporting in
the U.S.
2. In which scenario would a company recognize deferred tax
liabilities?
A) When tax expenses exceeds accounting income.
B) When revenue is recognized before cash is received.
C) When expenses are deducted from accounting income before
tax deduction.
D) When cash is received before revenue is recognized.
ANS: B) When revenue is recognized before cash is
received.
Rationale: Deferred tax liabilities arise when taxable income
is lower than accounting income due to timing differences.
©2024/2025
, 3. Which of the following methods of inventory costing assumes
that the oldest inventory items are sold first?
A) FIFO
B) LIFO
C) Weighted average
D) Specific identification
ANS: A) FIFO
Rationale: First-In, First-Out (FIFO) assumes that the oldest
inventory costs are used up first.
4. What does the term 'materiality' refer to in accounting?
A) The significance of an item in the financial statements.
B) The physical presence of an asset.
C) The amount of money invested in physical assets.
D) The reliability of financial information.
ANS: A) The significance of an item in the financial
statements.
Rationale: Materiality is a threshold above which missing or
incorrect information in financial statements could influence
decisions.
©2024/2025
Accounting Foundations
Final Assessment (Qns & Ans)
2025
General Instructions
1. Read All Questions Carefully: Make sure you understand each question before
ANSing.
2. Time Management: You have a specific amount of time to complete the exam.
Keep an eye on the clock and pace yourself.
3. Allowed Materials: Only use materials that are explicitly allowed. Unauthorized
materials can lead to disqualification.
4. ANS Format: Follow the required format for your ANSs. For example, multiple-
choice questions might need you to select the best ANS, while essay questions
require detailed responses.
5. Academic Integrity: Adhere to the university's honor code. Any form of cheating or
plagiarism is strictly prohibited.
6. Technical Requirements: Ensure your computer and internet connection are
stable. For online exams, you might need a webcam and microphone for proctoring
purposes.
7. Submission: Submit your ANSs before the time expires. Late submissions might
not be accepted.
©2024/2025
,1. Which of the following accounting standards is primarily used
in the United States?
A) IFRS
B) GAAP
C) ASC
D) IAS
ANS: B) GAAP
Rationale: Generally Accepted Accounting Principles
(GAAP) is the primary framework used for financial reporting in
the U.S.
2. In which scenario would a company recognize deferred tax
liabilities?
A) When tax expenses exceeds accounting income.
B) When revenue is recognized before cash is received.
C) When expenses are deducted from accounting income before
tax deduction.
D) When cash is received before revenue is recognized.
ANS: B) When revenue is recognized before cash is
received.
Rationale: Deferred tax liabilities arise when taxable income
is lower than accounting income due to timing differences.
©2024/2025
, 3. Which of the following methods of inventory costing assumes
that the oldest inventory items are sold first?
A) FIFO
B) LIFO
C) Weighted average
D) Specific identification
ANS: A) FIFO
Rationale: First-In, First-Out (FIFO) assumes that the oldest
inventory costs are used up first.
4. What does the term 'materiality' refer to in accounting?
A) The significance of an item in the financial statements.
B) The physical presence of an asset.
C) The amount of money invested in physical assets.
D) The reliability of financial information.
ANS: A) The significance of an item in the financial
statements.
Rationale: Materiality is a threshold above which missing or
incorrect information in financial statements could influence
decisions.
©2024/2025
