Final Exam Review
ACC/290 Final Examination Study Guide
This study guide will prepare you for the Final Examination you will complete in Week Five. It contains practice questions, which are related to each week’s objectives. In addition, refer to each week’s readings and your student guide as study references for the Final Examination.
Week One: Basic Accounting Principles and Concepts
Objective: Identify the four basic financial statements.
1. Which of the four basic financial statements has three main sections: one dealing with operating expenses, another dealing with financial activities, and another dealing with investment activities? a. Income statement b. Retained earnings statement c. Balance sheet d. Statement of cash flows
2. Which of the following lists the main sections of the statement of cash flows? a. Operations, investment, and credit activities b. Investments, credit, and cash operations c. Operations, investment, and financial activities d. Financing, investment, and credit activities
Objective: Classify transactions using the rules of debit and credit.
3. Which accounts have a normal credit balance? a. Assets and expenses b. Liabilities and expenses c. Assets and revenue d. Liabilities and revenue
4. A debit entry may indicate which of the following: a. An increase in an asset account b. A decrease in an asset account c. An increase in a liability account d. An increase in a capital account
Objective: Journalize basic transactions.
5. ABC Corporation records sales for the day totaling $50,000 in cash sales and $35,000 in sales on account. Which of the following is the correct journal entry? a. Cash $50,000 Accounts Receivable $35,000 Sales $85,000 b. Cash $50,000 Accounts Receivable $35,000 Sales on
This study guide will prepare you for the Final Examination you will complete in Week Five. It contains practice questions, which are related to each week’s objectives. In addition, refer to each week’s readings and your student guide as study references for the Final Examination.
Week One: Basic Accounting Principles and Concepts
Objective: Identify the four basic financial statements.
1. Which of the four basic financial statements has three main sections: one dealing with operating expenses, another dealing with financial activities, and another dealing with investment activities? a. Income statement b. Retained earnings statement c. Balance sheet d. Statement of cash flows
2. Which of the following lists the main sections of the statement of cash flows? a. Operations, investment, and credit activities b. Investments, credit, and cash operations c. Operations, investment, and financial activities d. Financing, investment, and credit activities
Objective: Classify transactions using the rules of debit and credit.
3. Which accounts have a normal credit balance? a. Assets and expenses b. Liabilities and expenses c. Assets and revenue d. Liabilities and revenue
4. A debit entry may indicate which of the following: a. An increase in an asset account b. A decrease in an asset account c. An increase in a liability account d. An increase in a capital account
Objective: Journalize basic transactions.
5. ABC Corporation records sales for the day totaling $50,000 in cash sales and $35,000 in sales on account. Which of the following is the correct journal entry? a. Cash $50,000 Accounts Receivable $35,000 Sales $85,000 b. Cash $50,000 Accounts Receivable $35,000 Sales on