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WALL STREET PREP ACCOUNTING CRASH COURSE EXAM
(VERSION 1 & 2) LATEST 2025 ACTUAL EXAM WITH COMPLETE
QUESTIONS AND CORRECT DETAILED ANSWERS (100% VERIFIED
ANSWERS) |ALREADY GRADED A+| ||PROFESSOR VERIFIED||
||BRANDNEW!!!||
A company that sells smartphones and other computer devices
has collected $500,000 in cash and an additional $100,000 is due
within the next 30 days for sales that it has made. It has already
shipped all the merchandise. Which of the following show the
correct journal entries for these activities?
A) Debit cash for $500,000, Debit Accounts Receivable for
$100,000, Credit Retained Earnings for $500,000, Credit Deferred
Revenue for $100,000.
B) Credit cash for $500,000, Credit Accounts Receivable for
$100,000, Debit Retained Earnings for $600,000.
C) Debit cash for $500,000, Debit Accounts Receivable for
$100,000, Credit Retained Earnings for $600,000.
D) Debit cash for $500,000, Debit Accounts Receivable for
$100,000, Credit Inventory for $600,000.
E) Credit cash for $500,000, Credit Accounts Receivable for
$100,000, Debit Inventory for $600,000. - ANSWER-C) Debit cash
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for $500,000, Debit Accounts Receivable for $100,000, Credit
Retained Earnings for $600,000.
A company that sells smartphones prepays $20,000 to cover the
next 12 months' worth of utilities. Which of the following shows
the correct journal entries for these activities?
A) Debit retained earnings for $20,000 and credit cash for
$20,000.
B) Credit retained earnings for $20,000 and debit cash for
$20,000.
C) Debit prepaid expenses for $20,000 and credit cash for
$20,000.
D) Credit prepaid expenses for $20,000 and debit cash for
$20,000. - ANSWER-C) Debit prepaid expenses for $20,000 and
credit cash for $20,000.
On June 30, 2020, a company that sells smartphones prepaid
$50,000 to cover the next 12 months' worth of utilities. 6 months
later, the company reports their annual results.
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Assuming no adjustments have been made since the original
journal entries, what journal entries should be made when
reporting the annual results?
A) No adjustment is required until June 30, 2021.
B) Credit prepaid expenses for $25,000 and debit retained
earnings for $25,000.
C) Debit prepaid expenses for $25,000 and credit retained
earnings for $25,000.
D) Debit prepaid expenses for $25,000 and credit cash for
$25,000. - ANSWER-B) Credit prepaid expenses for $25,000 and
debit retained earnings for $25,000.
Imagine two identical companies, with only one difference -
Company A reports using LIFO, while Company B reports using
FIFO. Assume that prices of inventories steadily rise over time.
Which of the following is correct?
A) Company A will report lower net income than company B
B) Company A will report higher PP&E than company B.
C) Company A will report higher total assets than company B.
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D) Company A and Company B will have identical shareholders
equity balances. - ANSWER-A) Company A will report lower net
income than company B
Amazonia, an online retailer, lost $50 million in inventory due to a
fire. Which of the following journal entries will likely occur as a
result?
A) $50 million debit to inventory and $50 million credit to retained
earnings
B) $50 million debit to inventory and $50 million credit to cash
C) $50 million credit to inventory and $50 million debit to retained
earnings
D) $50 million credit to inventory and $50 million debit to cash -
ANSWER-C) $50 million credit to inventory and $50 million debit
to retained earnings
On January 1, 2020, a company purchases equipment with a
useful life of 5 years for $50 million. The company uses straight-
line depreciation and has assumed no residual value for the
company. On January 1, 2023, the company sells the equipment
for $45 million.
WALL STREET PREP ACCOUNTING CRASH COURSE EXAM
(VERSION 1 & 2) LATEST 2025 ACTUAL EXAM WITH COMPLETE
QUESTIONS AND CORRECT DETAILED ANSWERS (100% VERIFIED
ANSWERS) |ALREADY GRADED A+| ||PROFESSOR VERIFIED||
||BRANDNEW!!!||
A company that sells smartphones and other computer devices
has collected $500,000 in cash and an additional $100,000 is due
within the next 30 days for sales that it has made. It has already
shipped all the merchandise. Which of the following show the
correct journal entries for these activities?
A) Debit cash for $500,000, Debit Accounts Receivable for
$100,000, Credit Retained Earnings for $500,000, Credit Deferred
Revenue for $100,000.
B) Credit cash for $500,000, Credit Accounts Receivable for
$100,000, Debit Retained Earnings for $600,000.
C) Debit cash for $500,000, Debit Accounts Receivable for
$100,000, Credit Retained Earnings for $600,000.
D) Debit cash for $500,000, Debit Accounts Receivable for
$100,000, Credit Inventory for $600,000.
E) Credit cash for $500,000, Credit Accounts Receivable for
$100,000, Debit Inventory for $600,000. - ANSWER-C) Debit cash
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for $500,000, Debit Accounts Receivable for $100,000, Credit
Retained Earnings for $600,000.
A company that sells smartphones prepays $20,000 to cover the
next 12 months' worth of utilities. Which of the following shows
the correct journal entries for these activities?
A) Debit retained earnings for $20,000 and credit cash for
$20,000.
B) Credit retained earnings for $20,000 and debit cash for
$20,000.
C) Debit prepaid expenses for $20,000 and credit cash for
$20,000.
D) Credit prepaid expenses for $20,000 and debit cash for
$20,000. - ANSWER-C) Debit prepaid expenses for $20,000 and
credit cash for $20,000.
On June 30, 2020, a company that sells smartphones prepaid
$50,000 to cover the next 12 months' worth of utilities. 6 months
later, the company reports their annual results.
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Assuming no adjustments have been made since the original
journal entries, what journal entries should be made when
reporting the annual results?
A) No adjustment is required until June 30, 2021.
B) Credit prepaid expenses for $25,000 and debit retained
earnings for $25,000.
C) Debit prepaid expenses for $25,000 and credit retained
earnings for $25,000.
D) Debit prepaid expenses for $25,000 and credit cash for
$25,000. - ANSWER-B) Credit prepaid expenses for $25,000 and
debit retained earnings for $25,000.
Imagine two identical companies, with only one difference -
Company A reports using LIFO, while Company B reports using
FIFO. Assume that prices of inventories steadily rise over time.
Which of the following is correct?
A) Company A will report lower net income than company B
B) Company A will report higher PP&E than company B.
C) Company A will report higher total assets than company B.
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D) Company A and Company B will have identical shareholders
equity balances. - ANSWER-A) Company A will report lower net
income than company B
Amazonia, an online retailer, lost $50 million in inventory due to a
fire. Which of the following journal entries will likely occur as a
result?
A) $50 million debit to inventory and $50 million credit to retained
earnings
B) $50 million debit to inventory and $50 million credit to cash
C) $50 million credit to inventory and $50 million debit to retained
earnings
D) $50 million credit to inventory and $50 million debit to cash -
ANSWER-C) $50 million credit to inventory and $50 million debit
to retained earnings
On January 1, 2020, a company purchases equipment with a
useful life of 5 years for $50 million. The company uses straight-
line depreciation and has assumed no residual value for the
company. On January 1, 2023, the company sells the equipment
for $45 million.
