ACCOUNTING CRASH EXAM(ACTUAL
EXAM) WITH CORRECT QUESTIONS AND
ANSWERS LATEST 2024 – 2025 GOOD
SCORE IS GUARANTEED GRADE A+
A company that sells smartphones and other computer devices has
collected $500,000 in cash and an additional $100,000 is due within the
next 30 days for sales that it has made. It has already shipped all the
merchandise. Which of the following show the correct journal entries
for these activities?
Debit cash for $500,000, Debit Accounts Receivable for $100,000,
Credit Retained Earnings for $500,000, Credit Deferred Revenue for
$100,000.
Credit cash for $500,000, Credit Accounts Receivable for $100,000,
Debit Retained Earnings for $600,000.
Debit cash for $500,000, Debit Accounts Receivable for $100,000,
Credit Retained Earnings for $600,000.
,Debit cash for $500,000, Debit Accounts Receivable for $100,000,
Credit Inventory for $600,000.
Credit cash for $500,000, Credit Accounts Receivable for $100,000,
Debit Inventory for $600,000. - ANSWERS-Debit cash for $500,000,
Debit Accounts Receivable for $100,000, Credit Retained Earnings for
$600,000.
Which of the following statements is TRUE?
Publicly traded US companies are required to file four 10-Q's and one
10-K annually.
All US companies are required to file three 10-Q's and one 10-K
annually.
Publicly traded US companies are required to file three 10-Q's and one
10-K annually.
Publicly traded US companies are required to file one 10-K annually; 10-
Q's are typically filed but are technically voluntary. - ANSWERS-Publicly
traded US companies are required to file three 10-Q's and one 10-K
annually.
Publicly-traded US companies must file three quarterly (10-Q) reports
at the end of their 1Q, 2Q and 3Q, and a 10-K at the end of their fiscal
year.
he income statement is designed to measure:
The liquidity of a firm.
, How solvent a company has been.
The income of a firm at a point in time.
Cash inflows/outflows generated over a period of time.
The profits of a firm over a period of time. - ANSWERS-The profits of a
firm over a period of time. The income statement is designed to show
the profitability of a business (revenues less expenses) over a period of
time (usually a quarter or year). The income statement is an accrual
measure of profits and thus not the best measure of cash flows. It is
also a poor measure of a company's liquidity or solvency, which
involves an analysis of a company's short term and long term assets and
liabilities, respectively. The balance sheet is designed to show a firm's
financial position, while the cash flow statement shows the amount of
cash generated by a firm.
The "matching principle" states that:
Costs associated with making a product must be recognized at the end
of the production process.
Costs associated with making a product must be recognized
immediately as incurred.
Costs associated with making a product must be recognized during the
same period as revenue generated from that product.
Costs associated with making a product must be recorded during the
same period as the sales, general, and administrative expenses that are
also associated with the product. - ANSWERS-Costs associated with
