ACC 231 Midterm 3 Question and
answers already passed 2025/2026
How do you compute the purchases from suppliers:
A) Cost of goods sold + ending inventory + beginning inventory.
B) Cost of goods sold - ending inventory - beginning inventory.
C) Cost of goods sold + ending inventory - beginning inventory.
D) Cost of goods sold - ending inventory + beginning inventory. - correct answer ✔C) Cost of goods sold
+ ending inventory - beginning inventory
(This computes how much the purchases of supplies were at the end of the accounting period)
Accounts Payable Turnover - correct answer ✔COGS/Average Accounts Payable
At the end of the year, a company makes a journal entry to accrue the interest expense on a short-term
note payable. As a result of this transaction:
A) current liabilities increase and current assets increase.
B) current liabilities increase and stockholders' equity increases.
C) current liabilities decrease and stockholders' equity decreases.
D) current liabilities increase and stockholders' equity decreases. - correct answer ✔D) Current
liabilities increase and stockholders' equity decreases.
ailure to record an accrued liability for wages earned by employees causes a company to:
A) understate net income.
B) overstate assets.
C) overstate liabilities.
D) overstate stockholders' equity. - correct answer ✔D) Overstate stockholders' equity
answers already passed 2025/2026
How do you compute the purchases from suppliers:
A) Cost of goods sold + ending inventory + beginning inventory.
B) Cost of goods sold - ending inventory - beginning inventory.
C) Cost of goods sold + ending inventory - beginning inventory.
D) Cost of goods sold - ending inventory + beginning inventory. - correct answer ✔C) Cost of goods sold
+ ending inventory - beginning inventory
(This computes how much the purchases of supplies were at the end of the accounting period)
Accounts Payable Turnover - correct answer ✔COGS/Average Accounts Payable
At the end of the year, a company makes a journal entry to accrue the interest expense on a short-term
note payable. As a result of this transaction:
A) current liabilities increase and current assets increase.
B) current liabilities increase and stockholders' equity increases.
C) current liabilities decrease and stockholders' equity decreases.
D) current liabilities increase and stockholders' equity decreases. - correct answer ✔D) Current
liabilities increase and stockholders' equity decreases.
ailure to record an accrued liability for wages earned by employees causes a company to:
A) understate net income.
B) overstate assets.
C) overstate liabilities.
D) overstate stockholders' equity. - correct answer ✔D) Overstate stockholders' equity
