ACCT 2300 TTU Exam 1 Questions with Correct Answers Latest Update 2025/2026
A chart of accounts: - Answers lists all of an organization's accounts and account numbers.
The first step in recording a transaction in the journal is: - Answers specifying each account
affected by the transaction and classifying the account by type.
Which financial statement answers the following question: How well did the company perform
during the year? - Answers income statement
The trial balance is used to determine if: - Answers total debits of all the accounts equal total
credits of all the accounts.
When services are performed on account: - Answers accounts receivable is increased
The CORRECT data flow from one financial statement to the next is: - Answers income
statement, statement of retained earnings, balance sheet, statement of cash flows.
In order to see a complete transaction in one place, you would need to look at the: - Answers
journal
The normal balance of a revenue account is a ________ because revenues increase ________. -
Answers credit; retained earnings
Which of the following is a TRUE statement regarding expenses? - Answers The expense
recognition principle recognizes expenses in the same period in which the related revenues are
earned.
When preparing the financial statements of a company: - Answers current assets are the most
liquid assets.
A trial balance has which of the following features? - Answers totals for all accounts listed in the
ledger
An important rule of debits and credits is: - Answers credits increase revenue accounts.
A doctor performed surgery in March and did not receive cash from the patient until July. Under
accrual accounting, the doctor recognizes revenue: - Answers in March
The normal balance of an expense account is a ________ because expenses decrease ________. -
Answers debit; retained earnings
The revenue principle deals with the following: - Answers when to record revenue and the
amount of revenue to record.
Which of the following statements, regarding the rules of debits and credits, is CORRECT? -
Answers Revenue is increased by a credit.
A chart of accounts: - Answers lists all of an organization's accounts and account numbers.
The first step in recording a transaction in the journal is: - Answers specifying each account
affected by the transaction and classifying the account by type.
Which financial statement answers the following question: How well did the company perform
during the year? - Answers income statement
The trial balance is used to determine if: - Answers total debits of all the accounts equal total
credits of all the accounts.
When services are performed on account: - Answers accounts receivable is increased
The CORRECT data flow from one financial statement to the next is: - Answers income
statement, statement of retained earnings, balance sheet, statement of cash flows.
In order to see a complete transaction in one place, you would need to look at the: - Answers
journal
The normal balance of a revenue account is a ________ because revenues increase ________. -
Answers credit; retained earnings
Which of the following is a TRUE statement regarding expenses? - Answers The expense
recognition principle recognizes expenses in the same period in which the related revenues are
earned.
When preparing the financial statements of a company: - Answers current assets are the most
liquid assets.
A trial balance has which of the following features? - Answers totals for all accounts listed in the
ledger
An important rule of debits and credits is: - Answers credits increase revenue accounts.
A doctor performed surgery in March and did not receive cash from the patient until July. Under
accrual accounting, the doctor recognizes revenue: - Answers in March
The normal balance of an expense account is a ________ because expenses decrease ________. -
Answers debit; retained earnings
The revenue principle deals with the following: - Answers when to record revenue and the
amount of revenue to record.
Which of the following statements, regarding the rules of debits and credits, is CORRECT? -
Answers Revenue is increased by a credit.
