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ACCOUNTING CRASH COURSE ACTUAL EXAM
2025/2026 BANK NEWEST FROM WALL STREET
PREP (WSP) TESTING VERSIONS AND A STUDY
GUIDE | EXPERT VERIFIED FOR GUARANTEED
PASS/ WSP ACCOUNTING CRASHCOURSE
ACTUAL LATEST EXAM/ WALLSTREET PREP
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 ......answer.....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:
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- 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? ......answer.....$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
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D) Revenue is recognized at the time of delivery of the goods or
services regardless of if cash is received ......answer.....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? ......answer.....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;
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- Loss on sale of investments was $87,000;
- Income tax expense was $58,000.
What was Clayton's gross profit? ......answer.....$560,000
(Gross Profit = Net Sales - COGS)
A customer purchased and received $5,000 of goods on credit from
Discount Paper Supply on September 1. The customer received the
bill on September 13 and mailed a $5,000 check on September 30.
Discount Paper Supply received the check on October 4. On which
of the following dates should Discount Paper Supply record sales
revenue? ......answer.....September 1st
(Sales revenue should be recorded on the date of sale)
Which of the following best describes the objective of
depreciation?
A) To estimate the remaining useful life of the asset
B) To report the asset on the balance sheet oat the estimated
amount for which the asset could be sold on the balance sheet date
ACCOUNTING CRASH COURSE ACTUAL EXAM
2025/2026 BANK NEWEST FROM WALL STREET
PREP (WSP) TESTING VERSIONS AND A STUDY
GUIDE | EXPERT VERIFIED FOR GUARANTEED
PASS/ WSP ACCOUNTING CRASHCOURSE
ACTUAL LATEST EXAM/ WALLSTREET PREP
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 ......answer.....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:
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- 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? ......answer.....$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
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D) Revenue is recognized at the time of delivery of the goods or
services regardless of if cash is received ......answer.....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? ......answer.....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;
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- Loss on sale of investments was $87,000;
- Income tax expense was $58,000.
What was Clayton's gross profit? ......answer.....$560,000
(Gross Profit = Net Sales - COGS)
A customer purchased and received $5,000 of goods on credit from
Discount Paper Supply on September 1. The customer received the
bill on September 13 and mailed a $5,000 check on September 30.
Discount Paper Supply received the check on October 4. On which
of the following dates should Discount Paper Supply record sales
revenue? ......answer.....September 1st
(Sales revenue should be recorded on the date of sale)
Which of the following best describes the objective of
depreciation?
A) To estimate the remaining useful life of the asset
B) To report the asset on the balance sheet oat the estimated
amount for which the asset could be sold on the balance sheet date
