Accounting 201 Final Exam Questions
with Correct Updated Answers 2025-
2026 Update.
balance sheet - Answer assets
liabilities
equity
income statement - Answer revenue
expense
gains/losses
gross profit
net income/loss
statement of retained earning - Answer beginning capital
contributed capital
ending capital
statement of cash flow - Answer listing of cash inflows/outflows
operating
investing
financing
steps in accounting cycle - Answer identity
journalize
communicate
cost principle - Answer record at cost
revenue recognition - Answer revenue recognized when earned
, accruals interest/revenue
prepaid
LIFO - Answer last in first out
FIFO - Answer first in first out
cost of goods sold - Answer beginning inventory plus net purchases minus ending inventory
gross profit - Answer sales minus cost of goods sold
perpetual - Answer ongoing
bank reconciliation - Answer adjusted bank balance
adjusted book balance
straight line depreciation - Answer cost - salvage value / estimated life
accounts receivable - Answer bad debt expense
allowance method
write off method
trading - Answer reported at Market Value after adjustment of unrealized gain or loss
help to maturity - Answer reported at cost
available for sale - Answer reported at Market Value after adjustment of unrealized gain or
loss
investments - Answer trading
held to maturity
with Correct Updated Answers 2025-
2026 Update.
balance sheet - Answer assets
liabilities
equity
income statement - Answer revenue
expense
gains/losses
gross profit
net income/loss
statement of retained earning - Answer beginning capital
contributed capital
ending capital
statement of cash flow - Answer listing of cash inflows/outflows
operating
investing
financing
steps in accounting cycle - Answer identity
journalize
communicate
cost principle - Answer record at cost
revenue recognition - Answer revenue recognized when earned
, accruals interest/revenue
prepaid
LIFO - Answer last in first out
FIFO - Answer first in first out
cost of goods sold - Answer beginning inventory plus net purchases minus ending inventory
gross profit - Answer sales minus cost of goods sold
perpetual - Answer ongoing
bank reconciliation - Answer adjusted bank balance
adjusted book balance
straight line depreciation - Answer cost - salvage value / estimated life
accounts receivable - Answer bad debt expense
allowance method
write off method
trading - Answer reported at Market Value after adjustment of unrealized gain or loss
help to maturity - Answer reported at cost
available for sale - Answer reported at Market Value after adjustment of unrealized gain or
loss
investments - Answer trading
held to maturity
