2026 ACCOUNTING CRASH
COURSE EXAM QUESTIONS AND
VERIFIED CORRECT SOLUTIONS
GRADED A+
The regulating body that oversees the development of accounting standards in the U.S. is:
A) SFAS
B) GAAP
C) FASB
D) IASB
C) FASB
Which of the following statements is true?
A) GAAP requires that firms show recorded values for acquired intangible assets such as patents
and trademarks on their financial statements
B) GAAP requires that firms show recorded values for intangible assets such as employee and
customer loyalty
C) GAAP requires that financial statements accurately reflects the market value of internally-
developed trademarks such as the value of the Coca-Cola brand name.
D) All of the above
A) GAAP requires that firms show recorded values for acquired intangible assets such as patents
and trademarks on their financial statements
Which of the following statements is true?
A) Publicly traded US companies are required to file four 10-Q's and one 10-K annually
B) All US companies are required to file three 10-Q's and one 10-K annually
,C) Publicly traded US companies are required to file three 10-Q's and one 10-K annually
D) Publicly traded US companies are required to file one 10-K annually; 10-Q's are typically
filed but are technically voluntary.
C) Publicly traded US companies are required to file three 10-Q's and one 10-K annually
The income statement is designed to measure:
A) The liquidity of a firm
B) How solvent a company has been
C) The income of a firm at a point in time
D) Cash inflows/outflows generated over a period of time
E) The profits of a firm over a period of time
E) The profits of a firm over a period of time
The "matching principle" states that:
A) Costs associated with making a product must be recognized at the end of the production
process
B) Costs associated with making a product must be recognized immediately as incurred
C) Costs associated with making a product must be recognized during the same period as
revenue generated from that product
D) Costs associated with making a product must be recorded during the sam period as the sales,
general, and administrative expenses that are also associated with the product
C) Costs associated with making a product must be recognized during the same period as
revenue generated from that product
Jones Company has provided the following information:
- Cash sales totaled $255,000
,- Credit sales totaled $479,000
- Interest income was $7,700
- Interest expense was $19,900
- Cost of goods sold was $336,000
- Rent expense was $36,000
- Salaries expense was $49,000
- Other operating expenses totaled $79,000
How much was Jones' operating income?
$234,000
(Operating Income = Operating revenues - Operating expenses)
Which of the following statements is false?
A) Collecting cash after delivery of a good or service does not create revenue on the income
statement on the date of collection
B) Revenue is not recognized at the time of delivery of goods and services if cash is received
after delivery of the goods and services
C) A liability is created when cash is received prior to delivery of the goods or services
D) Revenue is recognized at the time of delivery of the goods or services regardless of if cash is
received
, B) Revenue is not recognized at the time of delivery of goods and services if cash is received
after delivery of the goods and services
Clayton Corp. has provided the following information
- Gross profit was $620,000
- COGS was $380,000
- Net in come was $400,000
What was Clayton's gross profit margin?
62%
(Gross Profit = Sales - COGS, Gross Profit Percentage = Gross profit / Sales)
Clayton Corp. has provided the following information:
- Operating (excluding COGS) expenses were $345,000;
- Operating income was $215,000;
- Net sales were $1,100,000;
- Interest expense was $71,000;
- Loss on sale of investments was $87,000;
COURSE EXAM QUESTIONS AND
VERIFIED CORRECT SOLUTIONS
GRADED A+
The regulating body that oversees the development of accounting standards in the U.S. is:
A) SFAS
B) GAAP
C) FASB
D) IASB
C) FASB
Which of the following statements is true?
A) GAAP requires that firms show recorded values for acquired intangible assets such as patents
and trademarks on their financial statements
B) GAAP requires that firms show recorded values for intangible assets such as employee and
customer loyalty
C) GAAP requires that financial statements accurately reflects the market value of internally-
developed trademarks such as the value of the Coca-Cola brand name.
D) All of the above
A) GAAP requires that firms show recorded values for acquired intangible assets such as patents
and trademarks on their financial statements
Which of the following statements is true?
A) Publicly traded US companies are required to file four 10-Q's and one 10-K annually
B) All US companies are required to file three 10-Q's and one 10-K annually
,C) Publicly traded US companies are required to file three 10-Q's and one 10-K annually
D) Publicly traded US companies are required to file one 10-K annually; 10-Q's are typically
filed but are technically voluntary.
C) Publicly traded US companies are required to file three 10-Q's and one 10-K annually
The income statement is designed to measure:
A) The liquidity of a firm
B) How solvent a company has been
C) The income of a firm at a point in time
D) Cash inflows/outflows generated over a period of time
E) The profits of a firm over a period of time
E) The profits of a firm over a period of time
The "matching principle" states that:
A) Costs associated with making a product must be recognized at the end of the production
process
B) Costs associated with making a product must be recognized immediately as incurred
C) Costs associated with making a product must be recognized during the same period as
revenue generated from that product
D) Costs associated with making a product must be recorded during the sam period as the sales,
general, and administrative expenses that are also associated with the product
C) Costs associated with making a product must be recognized during the same period as
revenue generated from that product
Jones Company has provided the following information:
- Cash sales totaled $255,000
,- Credit sales totaled $479,000
- Interest income was $7,700
- Interest expense was $19,900
- Cost of goods sold was $336,000
- Rent expense was $36,000
- Salaries expense was $49,000
- Other operating expenses totaled $79,000
How much was Jones' operating income?
$234,000
(Operating Income = Operating revenues - Operating expenses)
Which of the following statements is false?
A) Collecting cash after delivery of a good or service does not create revenue on the income
statement on the date of collection
B) Revenue is not recognized at the time of delivery of goods and services if cash is received
after delivery of the goods and services
C) A liability is created when cash is received prior to delivery of the goods or services
D) Revenue is recognized at the time of delivery of the goods or services regardless of if cash is
received
, B) Revenue is not recognized at the time of delivery of goods and services if cash is received
after delivery of the goods and services
Clayton Corp. has provided the following information
- Gross profit was $620,000
- COGS was $380,000
- Net in come was $400,000
What was Clayton's gross profit margin?
62%
(Gross Profit = Sales - COGS, Gross Profit Percentage = Gross profit / Sales)
Clayton Corp. has provided the following information:
- Operating (excluding COGS) expenses were $345,000;
- Operating income was $215,000;
- Net sales were $1,100,000;
- Interest expense was $71,000;
- Loss on sale of investments was $87,000;
