ACCT 2300 Mistrot Exam 4 Review
questions with verified answers
2025/2026
Which accounting principle dictates whether the cost of a repair should be expensed? - correct
answer ✔✔Matching
Which of the following would NOT be considered part of the cost of the land? - correct answer
✔✔Paving
During the month, Evergreen Roofing settled $600 in warranty claims by replacing the defective
flashing. Evergreen uses an estimated warranty account. The journal entry to record the settled
claims would have been: - correct answer ✔✔debit Accrued Warranty Payable $600; credit
Inventory $600.
The need to create an estimated warranty liability arises from the ________ principle. - correct
answer ✔✔Matching
Which of the following would NOT be considered an intangible asset? - correct answer ✔✔Land
A patent has amortization this year of $2,300. The journal entry would be to: - correct answer
✔✔Debit amortization expense-patent, $2,300; credit patent, $2,300.
Patents to produce and sell inventions are conveyed by the federal government for a period of: -
correct answer ✔✔20 years
Assets that CANNOT be seen, touched, or held are called: - correct answer ✔✔Intangible assets
, TNT Construction had cash sales for the month of June totaling $44,000. TNT offers a 1-year
warranty on its construction services. If TNT estimates warranty claims will equal 5% of sales,
the journal entry to record the estimated warranty expense for the month is: - correct answer
✔✔Debit Warranty expense, $2,200; credit Estimated warranty payable, $2,200.
A company replaced tires on a vehicle and debited the amount to Vehicle instead of Repairs and
Maintenance Expense. Which of the following would occur because of this error? - correct
answer ✔✔Expenses would be understated.
Jun 30, 2018, Beck sold a computer that was purchased on Jan. 1, 2016. The computer cost
$14,000, had a useful life of 7 years, no salvage. The computer was sold for $11,500.
a. Was the computer sold for a gain or loss?
b.How much was the gain or loss on the sale? - correct answer ✔✔a.) gain
b.) 2,500
An obligation dependent upon an event that has not yet occurred is an example of a(n): -
correct answer ✔✔Contingent liability
Classy Cooks did a major overhaul of their ovens, which extended the useful life of the ovens by
4 years. The journal entry to record this included a debit to repairs expense. This entry is: -
correct answer ✔✔incorrect, and as a result net income will be understated
On December 31st, Aubie has cost of goods sold of $734,000 and ending inventory of $123,000.
The beginning inventory for the year had been $95,000. Calculate the purchases from suppliers,
assume all on account. - correct answer ✔✔762,000
questions with verified answers
2025/2026
Which accounting principle dictates whether the cost of a repair should be expensed? - correct
answer ✔✔Matching
Which of the following would NOT be considered part of the cost of the land? - correct answer
✔✔Paving
During the month, Evergreen Roofing settled $600 in warranty claims by replacing the defective
flashing. Evergreen uses an estimated warranty account. The journal entry to record the settled
claims would have been: - correct answer ✔✔debit Accrued Warranty Payable $600; credit
Inventory $600.
The need to create an estimated warranty liability arises from the ________ principle. - correct
answer ✔✔Matching
Which of the following would NOT be considered an intangible asset? - correct answer ✔✔Land
A patent has amortization this year of $2,300. The journal entry would be to: - correct answer
✔✔Debit amortization expense-patent, $2,300; credit patent, $2,300.
Patents to produce and sell inventions are conveyed by the federal government for a period of: -
correct answer ✔✔20 years
Assets that CANNOT be seen, touched, or held are called: - correct answer ✔✔Intangible assets
, TNT Construction had cash sales for the month of June totaling $44,000. TNT offers a 1-year
warranty on its construction services. If TNT estimates warranty claims will equal 5% of sales,
the journal entry to record the estimated warranty expense for the month is: - correct answer
✔✔Debit Warranty expense, $2,200; credit Estimated warranty payable, $2,200.
A company replaced tires on a vehicle and debited the amount to Vehicle instead of Repairs and
Maintenance Expense. Which of the following would occur because of this error? - correct
answer ✔✔Expenses would be understated.
Jun 30, 2018, Beck sold a computer that was purchased on Jan. 1, 2016. The computer cost
$14,000, had a useful life of 7 years, no salvage. The computer was sold for $11,500.
a. Was the computer sold for a gain or loss?
b.How much was the gain or loss on the sale? - correct answer ✔✔a.) gain
b.) 2,500
An obligation dependent upon an event that has not yet occurred is an example of a(n): -
correct answer ✔✔Contingent liability
Classy Cooks did a major overhaul of their ovens, which extended the useful life of the ovens by
4 years. The journal entry to record this included a debit to repairs expense. This entry is: -
correct answer ✔✔incorrect, and as a result net income will be understated
On December 31st, Aubie has cost of goods sold of $734,000 and ending inventory of $123,000.
The beginning inventory for the year had been $95,000. Calculate the purchases from suppliers,
assume all on account. - correct answer ✔✔762,000
