Financial Accounting Exam 2 Practice Quiz
Quick, free accounting practice test with instant results and detailed answers.
This quiz helps you prepare for Financial Accounting Exam 2 by checking your grasp of key topics. Build confidence with mixed questions, clear explanations, and instant results. For extra practice, try our financial accounting practice questions, take a quick accounting knowledge check, or broaden your skills with an accounting quiz.
Study Outcomes
- Apply Adjusting Entries Accurately -
Demonstrate the ability to prepare and record end-of-period adjustments for prepaid expenses, unearned revenue, and accrued items in exam 2 financial accounting scenarios.
- Prepare Core Financial Statements -
Compile and present the income statement, statement of retained earnings, and balance sheet using adjusted trial balance data from your financial accounting 2 exam practice.
- Analyze and Record Complex Transactions -
Examine multifaceted business transactions and correctly journalize them in the ledger to reinforce skills for accounting exam 2 questions.
- Interpret Financial Statement Data -
Assess the significance of major line items and summary figures to understand company performance and decision-making in financial accounting test 2 contexts.
- Evaluate Quiz Performance for Targeted Review -
Use quiz results to identify strengths and weaknesses, enabling focused study on areas needing improvement before your accounting 2 exam.
Cheat Sheet
- Accounting Equation & Double-Entry System -
For exam 2 financial accounting, master the core equation Assets = Liabilities + Equity, which ensures every transaction has dual effects. Use T-accounts to visualize increases and decreases, always keeping total debits equal to total credits (source: Kieso et al., IFRS).
- Accrual Accounting & Matching Principle -
Under the accrual basis, record revenues when earned and expenses when incurred, not when cash changes hands, aligning with the matching principle. This approach gives a truer picture of performance and is required by FASB and IASB standards (source: FASB Codification).
- Adjusting Entries: Deferrals vs Accruals -
There are two main types of adjustments: deferrals (prepaid expenses and unearned revenues) and accruals (accrued revenues and expenses). Remember the mnemonic "DEAD CLIC" (Debits: Expenses, Assets, Dividends; Credits: Liabilities, Income, Capital) to ensure correct journal entries.
- Depreciation Methods & Formula -
On your exam 2 financial accounting quiz, be comfortable deriving depreciation using the straight-line formula: (Cost - Salvage Value) ÷ Useful Life = Annual Depreciation Expense. Compare with units-of-production or declining-balance methods to match an asset's usage pattern (source: Wiley Online Library).
- Classified Financial Statements & Closing Process -
Classify assets and liabilities as current or long-term to enhance clarity and comply with IAS 1. After preparing the income statement and balance sheet, use closing entries to reset temporary accounts and generate a post-closing trial balance, ensuring only balance sheet accounts carry forward.