College Accounting Final Exam And
Correct Answers 2026.
Corporation - Answer a business owned by stockholders (or shareholders)
Merchandising Business - Answer a business that buys a product from another business to
sell to customers
Fiscal year - Answer Accounting period of 12 months
Processing - Answer recognizing the effect of transactions on the assets, liabilities, owner's
equity, revenues, and expenses of a business
Income statement - Answer financial statement that reports the profitability of business
operations for a specific period of time
Balance Sheet - Answer financial statement that reports a firm's assets, liabilities, and
owner's equity on a specific date
Footings - Answer the total dollar amounts on the debit and credit sides of an account
Double-entry accounting - Answer A system in which each transaction has a dual effect on
the accounting elements
Balance - Answer The difference between the footings of an account
Chart of accounts - Answer a list of all accounts used by a business
Accrual Basis of accounting - Answer a method of accounting under which revenues are
recorded when earned and expenses are recorded when incurred
Depreciable cost - Answer the cost of an asset that is subject to depreciation
Depreciation - Answer a method of matching an asset's original cost against the revenues
produced over its useful life
, Historical cost principle - Answer a principle that requires assets to be recorded at their
actual cost
Matching principle - Answer a principle that requires the matching of revenues earned
during an accounting period with the expenses incurred to produce the revenues
Useful life - Answer the period of time that an asset is expected to help produce revenues
Post-closing trial balance - Answer prepared after posting the closing entries to prove the
equality of the debit and credit balances in the general ledger accounts
Controlling account - Answer A summary account maintained in the general ledger with a
subsidiary ledger
Credit memo - Answer A document issued when credit is given for merchandise returned or
for an allowance
Sales Return - Answer merchandise returned by a customer for a refund
Sales Ticket - Answer A document created as evidence of a sale in a retail business
Schedule of accounts Receivable - Answer An alphabetical or numerical listing of customer
accounts and balances, usually prepared at the end of the month
Bank reconciliation - Answer A report used to bring the book and bank balances into
agreement
Bank statement - Answer A statement of account issued by a bank to each depositor once a
month
Deposit Ticket - Answer A form showing a detailed listing of items being deposited
Deposits in transit - Answer Deposits that have not reached or been recorded by the bank
before the bank statement is prepared
Drawee - Answer The bank on which the check is drawn
Correct Answers 2026.
Corporation - Answer a business owned by stockholders (or shareholders)
Merchandising Business - Answer a business that buys a product from another business to
sell to customers
Fiscal year - Answer Accounting period of 12 months
Processing - Answer recognizing the effect of transactions on the assets, liabilities, owner's
equity, revenues, and expenses of a business
Income statement - Answer financial statement that reports the profitability of business
operations for a specific period of time
Balance Sheet - Answer financial statement that reports a firm's assets, liabilities, and
owner's equity on a specific date
Footings - Answer the total dollar amounts on the debit and credit sides of an account
Double-entry accounting - Answer A system in which each transaction has a dual effect on
the accounting elements
Balance - Answer The difference between the footings of an account
Chart of accounts - Answer a list of all accounts used by a business
Accrual Basis of accounting - Answer a method of accounting under which revenues are
recorded when earned and expenses are recorded when incurred
Depreciable cost - Answer the cost of an asset that is subject to depreciation
Depreciation - Answer a method of matching an asset's original cost against the revenues
produced over its useful life
, Historical cost principle - Answer a principle that requires assets to be recorded at their
actual cost
Matching principle - Answer a principle that requires the matching of revenues earned
during an accounting period with the expenses incurred to produce the revenues
Useful life - Answer the period of time that an asset is expected to help produce revenues
Post-closing trial balance - Answer prepared after posting the closing entries to prove the
equality of the debit and credit balances in the general ledger accounts
Controlling account - Answer A summary account maintained in the general ledger with a
subsidiary ledger
Credit memo - Answer A document issued when credit is given for merchandise returned or
for an allowance
Sales Return - Answer merchandise returned by a customer for a refund
Sales Ticket - Answer A document created as evidence of a sale in a retail business
Schedule of accounts Receivable - Answer An alphabetical or numerical listing of customer
accounts and balances, usually prepared at the end of the month
Bank reconciliation - Answer A report used to bring the book and bank balances into
agreement
Bank statement - Answer A statement of account issued by a bank to each depositor once a
month
Deposit Ticket - Answer A form showing a detailed listing of items being deposited
Deposits in transit - Answer Deposits that have not reached or been recorded by the bank
before the bank statement is prepared
Drawee - Answer The bank on which the check is drawn
