ACC 231 Exam 2 Practice
Test Question and answers
already passed 2025/2026
1. A company receives an invoice $105
for
$3,500 with terms of 3/10, n/45
on March 8. If the company
pays
the bill on March 15, what is
the amount of the purchase
discount they will receive?
2. A company purchases $4,800 of inven- DR Inventory $4,800; CR Accounts
Payable $4,800.
tory on account. The journal
entry to record this purchase is
3. If an invoice reads n/10, it means that: the company has 10 days to pay the bill
in full.
4. Net sales or net revenue is Gross Sales - Sales Returns and Allowances
computed by taking: - Sales Discounts
5. Which of the following FOB destination
indicates that the title of the
goods (ownership) changes
hands when the
shipment arrives at the buyers'
place of business?
6. An outdoor clothing store, reports the $17,000
following information for June.
What is their operating income
for June?
Sales revenue
$104,000
1/
23
,Income tax expense
$11,000
Operating expenses
22,000
Cost of goods sold
65,000
2/
23
, ACC 231 Exam 2 Practice Test
Deferred revenues
$15,000
Nonoperating revenues 12,000
7. Equipment is an example of a: long-term asset
8. The Cost of Goods Sold Income Statement.
account ap-pears on the:
9. The Inventory account appears on the: Balance Sheet.
10. A company purchases inventory 14. Beg. Inv. --> 20 Units @ $2
for ea.
$500 then sells the inventory for Mar 7 --> Purchase 15 Units
$1,200 in cash. The journal @ $3 ea. Mar 11 --> Sell 2
entry to record revenue is: Units for $7 /unit
11. A company purchases inventory
for
$500 then sells the inventory for
$1,200 in cash. The
journal entry to record the
expense is:
12. The account used to record a
cus-tomer's return is:
13. Beg. Inv. --> 20 Units @ $2 ea.
Mar 7 --> Purchase 15 Units @
$3 ea. Mar 11 --> Sell 2 Units for
$7 /unit What is the value of
ending inventory if the company
uses FIFO?
3/
23
Test Question and answers
already passed 2025/2026
1. A company receives an invoice $105
for
$3,500 with terms of 3/10, n/45
on March 8. If the company
pays
the bill on March 15, what is
the amount of the purchase
discount they will receive?
2. A company purchases $4,800 of inven- DR Inventory $4,800; CR Accounts
Payable $4,800.
tory on account. The journal
entry to record this purchase is
3. If an invoice reads n/10, it means that: the company has 10 days to pay the bill
in full.
4. Net sales or net revenue is Gross Sales - Sales Returns and Allowances
computed by taking: - Sales Discounts
5. Which of the following FOB destination
indicates that the title of the
goods (ownership) changes
hands when the
shipment arrives at the buyers'
place of business?
6. An outdoor clothing store, reports the $17,000
following information for June.
What is their operating income
for June?
Sales revenue
$104,000
1/
23
,Income tax expense
$11,000
Operating expenses
22,000
Cost of goods sold
65,000
2/
23
, ACC 231 Exam 2 Practice Test
Deferred revenues
$15,000
Nonoperating revenues 12,000
7. Equipment is an example of a: long-term asset
8. The Cost of Goods Sold Income Statement.
account ap-pears on the:
9. The Inventory account appears on the: Balance Sheet.
10. A company purchases inventory 14. Beg. Inv. --> 20 Units @ $2
for ea.
$500 then sells the inventory for Mar 7 --> Purchase 15 Units
$1,200 in cash. The journal @ $3 ea. Mar 11 --> Sell 2
entry to record revenue is: Units for $7 /unit
11. A company purchases inventory
for
$500 then sells the inventory for
$1,200 in cash. The
journal entry to record the
expense is:
12. The account used to record a
cus-tomer's return is:
13. Beg. Inv. --> 20 Units @ $2 ea.
Mar 7 --> Purchase 15 Units @
$3 ea. Mar 11 --> Sell 2 Units for
$7 /unit What is the value of
ending inventory if the company
uses FIFO?
3/
23
