ACCY 201 FINAL TEST QUESTIONS
AND CORRECT ANSWERS
What do adjusting entries affect? - Answer- Balance sheets and income statements
What type of account is debited, and what type of account is credited when recording an
accrued revenue? - Answer- Debit cash
credit revenue
What account is debited and what account is credited in a transaction involving
unearned revenue? - Answer- debit cash
credit unearned revenue
Calculate COGS when given net sales and gross profit - Answer- net sales - x = gross
profit
How is COGS allocated at the end of the period - Answer- COGS & ending inventory
on a Bank reconciliation NFS checks are... - Answer- deducted on the bank side
Journal entry for the recovery of bad debts - Answer- A/R xxx
bad debt expense xxx
cash xxx
A/R. xxx
Which is not a plant asset - Answer- Patents
What are lump- sum purchases - Answer- Apprised value
What does it mean to capitalize an expenditure - Answer- Record as an asset
Maturity date of a short term note - Answer- add up months till 90 days
Estimate of bad dents expense using the accounts receivable method - Answer-
Allowance for DA
How is the debt to equity ratio calculated - Answer- total liabilities/ total equity
Straight line depreciation formula - Answer- (cost - salvage value) / useful life in periods
AND CORRECT ANSWERS
What do adjusting entries affect? - Answer- Balance sheets and income statements
What type of account is debited, and what type of account is credited when recording an
accrued revenue? - Answer- Debit cash
credit revenue
What account is debited and what account is credited in a transaction involving
unearned revenue? - Answer- debit cash
credit unearned revenue
Calculate COGS when given net sales and gross profit - Answer- net sales - x = gross
profit
How is COGS allocated at the end of the period - Answer- COGS & ending inventory
on a Bank reconciliation NFS checks are... - Answer- deducted on the bank side
Journal entry for the recovery of bad debts - Answer- A/R xxx
bad debt expense xxx
cash xxx
A/R. xxx
Which is not a plant asset - Answer- Patents
What are lump- sum purchases - Answer- Apprised value
What does it mean to capitalize an expenditure - Answer- Record as an asset
Maturity date of a short term note - Answer- add up months till 90 days
Estimate of bad dents expense using the accounts receivable method - Answer-
Allowance for DA
How is the debt to equity ratio calculated - Answer- total liabilities/ total equity
Straight line depreciation formula - Answer- (cost - salvage value) / useful life in periods
