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
1. The regulating body that oversees the development of
accounting standards in the U.S. is:
A) SFAS
B) GAAP
C) FASB
D) IASB - ANSWER ✓ C) FASB
2. Which of the following statements is true?
A) GAAP requires that firms show recorded values for
acquired intangible assets such as patents and
trademarks on their financial statements
B) GAAP requires that firms show recorded values for
intangible assets such as employee and customer loyalty
C) GAAP requires that financial statements accurately
reflects the market value of internally-developed
trademarks such as the value of the Coca-Cola brand
name.
D) All of the above - ANSWER ✓ A) GAAP requires that
firms show recorded values for acquired intangible assets
such as patents and trademarks on their financial statements
,3. Which of the following statements is true?
A) Publicly traded US companies are required to file four 10-
Q's and one 10-K annually
B) All US companies are required to file three 10-Q's and
one 10-K annually
C) Publicly traded US companies are required to file three
10-Q's and one 10-K annually
4. D) Publicly traded US companies are required to file one 10-K
annually; 10-Q's are typically filed but are technically voluntary.
- ANSWER ✓ C) Publicly traded US companies are required
to file three 10-Q's and one 10-K annually
5. The income statement is designed to measure:
A) The liquidity of a firm
B) How solvent a company has been
C) The income of a firm at a point in time
D) Cash inflows/outflows generated over a period of time
E) The profits of a firm over a period of time - ANSWER ✓
E) The profits of a firm over a period of time
6. 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
7. Jones Company has provided the following information:
- 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)
8. 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
9. 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
10. 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)
11. 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;
- 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)
12. 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
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
1. The regulating body that oversees the development of
accounting standards in the U.S. is:
A) SFAS
B) GAAP
C) FASB
D) IASB - ANSWER ✓ C) FASB
2. Which of the following statements is true?
A) GAAP requires that firms show recorded values for
acquired intangible assets such as patents and
trademarks on their financial statements
B) GAAP requires that firms show recorded values for
intangible assets such as employee and customer loyalty
C) GAAP requires that financial statements accurately
reflects the market value of internally-developed
trademarks such as the value of the Coca-Cola brand
name.
D) All of the above - ANSWER ✓ A) GAAP requires that
firms show recorded values for acquired intangible assets
such as patents and trademarks on their financial statements
,3. Which of the following statements is true?
A) Publicly traded US companies are required to file four 10-
Q's and one 10-K annually
B) All US companies are required to file three 10-Q's and
one 10-K annually
C) Publicly traded US companies are required to file three
10-Q's and one 10-K annually
4. D) Publicly traded US companies are required to file one 10-K
annually; 10-Q's are typically filed but are technically voluntary.
- ANSWER ✓ C) Publicly traded US companies are required
to file three 10-Q's and one 10-K annually
5. The income statement is designed to measure:
A) The liquidity of a firm
B) How solvent a company has been
C) The income of a firm at a point in time
D) Cash inflows/outflows generated over a period of time
E) The profits of a firm over a period of time - ANSWER ✓
E) The profits of a firm over a period of time
6. 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
7. Jones Company has provided the following information:
- 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)
8. 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
9. 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
10. 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)
11. 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;
- 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)
12. 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
