ACCT 526 EXAM/ ACTUAL ACCT 526 FINAL EXAM LATEST 2026 COMPLETE ACCURATE EXAM APPROVED QUESTIONS AND CORRECT DETAILED SOLUTIONS WITH RATIONALES (100% CORRECT VERIFIED ANSWERS) LATEST UPDATED VERSION 2026EDITION |GUARANTEEED PASS A+ |FULL REVISED AC

ACCT 526 EXAM/ ACTUAL ACCT 526 FINAL EXAM LATEST
2026 COMPLETE ACCURATE EXAM APPROVED QUESTIONS
AND CORRECT DETAILED SOLUTIONS WITH RATIONALES
(100% CORRECT VERIFIED ANSWERS) LATEST UPDATED
VERSION 2026EDITION |GUARANTEEED PASS A+ |FULL
REVISED ACCT 526 FINAL 2026


1. A company receives a 10,000,90−day,6a)10,000,90−day,6a)10,000
b) 10,150c)10,150c)10,600
d) $10,050
Correct Answer: b) 10,150∗Rationale:
∗Interest=Principal×Rate×Time=10,150∗Rationale:
∗Interest=Principal×Rate×Time=10,000 × 0.06 × (90/360)
= 150.Maturityvalue=Principal+Interest=150.Maturityvalue=Principal+I
nterest=10,000 + 150=150=10,150.
2. Under the allowance method, writing off an uncollectible account:
a) Increases net income
b) Decreases total assets
c) Has no effect on total assets
d) Increases the allowance for doubtful accounts
Correct Answer: c) Has no effect on total assets
Rationale: Writing off an account reduces Accounts Receivable and the
Allowance for Doubtful Accounts equally, so net accounts receivable
(total assets) remains unchanged.
3. Which inventory costing method results in the highest net income
during a period of rising prices?
a) LIFO
b) FIFO
c) Weighted average
d) Specific identification

,Correct Answer: b) FIFO
Rationale: In rising prices, FIFO assigns lower older costs to cost of
goods sold, producing higher gross profit and net income compared to
LIFO.
4. A company has 50,000insales,50,000insales,20,000 in cost of goods
sold,
and 5,000inoperatingexpenses.Whatisthegrossprofit?a)5,000inoperating
expenses.Whatisthegrossprofit?a)25,000
b) 30,000c)30,000c)45,000
d) $50,000
Correct Answer: b) 30,000∗Rationale: ∗Grossprofit=Sales–
Costofgoodssold=30,000∗Rationale: ∗Grossprofit=Sales–
Costofgoodssold=50,000 – 20,000=20,000=30,000. Operating expenses
are deducted later to find operating income.
5: Which is an extraordinary item under old GAAP?
a) Tornado loss in Kansas (frequent area)
b) Flood loss in desert area
c) Write-off of obsolete inventory
d) Gain from retirement of bonds
Correct Answer: b) Flood loss in desert area
Rationale: A flood in a desert region is both unusual and infrequent,
meeting old GAAP extraordinary item criteria.
6. A company
issues 100,000facevaluebondsat98.Theentrytorecordtheissuanceincludes:
a)DebittoCash100,000facevaluebondsat98.Theentrytorecordtheissuancei
ncludes:a)DebittoCash100,000
b) Debit to Discount on Bonds
Payable 2,000c)CredittoBondsPayable2,000c)CredittoBondsPayable98,
000
d) Debit to Premium on Bonds Payable $2,000

, Correct Answer: b) Debit to Discount on Bonds
Payable 2,000∗Rationale:
∗Issuingat98meanscashreceived=2,000∗Rationale:
∗Issuingat98meanscashreceived=98,000. Discount = 2,000. Entry:
Cash2,000. Entry: Cash98,000 (debit), Discount on Bonds
Payable 2,000(debit), BondsPayable2,000(debit), BondsPayable100,000
(credit).
7. Which of the following is not a current liability?
a) Accounts payable
b) Unearned revenue
c) Bonds payable due in 5 years
d) Salaries payable
Correct Answer: c) Bonds payable due in 5 years
Rationale: Current liabilities are due within one year or operating cycle.
Bonds due in 5 years are long-term liabilities.
8. When using the indirect method for the statement of cash flows, a
decrease in accounts receivable is:
a) Added to net income
b) Subtracted from net income
c) Reported as an investing activity
d) Reported as a financing activity
Correct Answer: a) Added to net income
Rationale: Decrease in accounts receivable means cash collections
exceeded sales, so add back to net income in operating activities.
9. A company has current assets
of 200,000andcurrentliabilitiesof200,000andcurrentliabilitiesof150,000.
What is the working capital?
a) 50,000b)50,000b)200,000
c) 150,000d)150,000d)350,000