ACCT 2000 UPDATED 2026 SET QUESTIONS AND
ANSWERS SURE A+
✔✔What are the (permanent) balance sheet accounts? - ✔✔assets, liabilities, and
stockholder's equity
✔✔The purpose of the post-closing trial balance is to prove the ____________ of the
_______________ account balances that the company carries forward into the next
accounting period. - ✔✔equality; permanent
✔✔In the post-closing trial balance, all _______________ accounts have a zero
balance. - ✔✔temporary
✔✔What are the two types of inventory system? - ✔✔perpetual and periodic
✔✔What are the three important line items in a multistep income statement? - ✔✔gross
profit, income from operations and net income
✔✔In perpetual inventory systems, the company determines cost of goods sold
_______ _______ a sale occurs. - ✔✔each time
, ✔✔In periodic inventory systems, cost of goods sold is determined by a ____________
_________ at the end of the accounting period. - ✔✔physical count
✔✔What are the advantages of a single step income statement? - ✔✔easy to read and
simple to prepare
✔✔What type of income statement do most companies prefer? - ✔✔multi-step
✔✔What are the advantages of a multi-step income statement? - ✔✔highlights the
components of net income
✔✔What is the formula for net sales? - ✔✔sales revenue - sales returns and allowances
- sales discounts
✔✔Gross profit - total operating expenses = - ✔✔income from operations
✔✔Income before income tax - income tax expense = - ✔✔net income
✔✔Which non-operating activities are classified as other revenues and gains? -
✔✔interest revenue, dividend revenue, rent revenue, and gain
✔✔Which non-operating activities are classified as other expenses and losses? -
✔✔interest expense, casualty losses, and loss
✔✔What is the gross profit rate formula? - ✔✔gross profit/net sales
✔✔What is the profit margin formula? - ✔✔net income/net sales
✔✔What does profit margin mean? - ✔✔percent of sales keep as net income
✔✔What are three types of adjustments made to the book? - ✔✔unreported payments,
unrecorded receipts, and bank errors
✔✔What are the three types of adjustments made to the bank? - ✔✔deposit in transit,
outstanding checks, and book errors
✔✔What are examples of unreported payments? - ✔✔NSF checks and bank service
charges
✔✔What is a check called when a company does not have sufficient funds to make a
payment? - ✔✔NSF check
✔✔What are checks that do not clear the bank are called? - ✔✔outstanding checks
ANSWERS SURE A+
✔✔What are the (permanent) balance sheet accounts? - ✔✔assets, liabilities, and
stockholder's equity
✔✔The purpose of the post-closing trial balance is to prove the ____________ of the
_______________ account balances that the company carries forward into the next
accounting period. - ✔✔equality; permanent
✔✔In the post-closing trial balance, all _______________ accounts have a zero
balance. - ✔✔temporary
✔✔What are the two types of inventory system? - ✔✔perpetual and periodic
✔✔What are the three important line items in a multistep income statement? - ✔✔gross
profit, income from operations and net income
✔✔In perpetual inventory systems, the company determines cost of goods sold
_______ _______ a sale occurs. - ✔✔each time
, ✔✔In periodic inventory systems, cost of goods sold is determined by a ____________
_________ at the end of the accounting period. - ✔✔physical count
✔✔What are the advantages of a single step income statement? - ✔✔easy to read and
simple to prepare
✔✔What type of income statement do most companies prefer? - ✔✔multi-step
✔✔What are the advantages of a multi-step income statement? - ✔✔highlights the
components of net income
✔✔What is the formula for net sales? - ✔✔sales revenue - sales returns and allowances
- sales discounts
✔✔Gross profit - total operating expenses = - ✔✔income from operations
✔✔Income before income tax - income tax expense = - ✔✔net income
✔✔Which non-operating activities are classified as other revenues and gains? -
✔✔interest revenue, dividend revenue, rent revenue, and gain
✔✔Which non-operating activities are classified as other expenses and losses? -
✔✔interest expense, casualty losses, and loss
✔✔What is the gross profit rate formula? - ✔✔gross profit/net sales
✔✔What is the profit margin formula? - ✔✔net income/net sales
✔✔What does profit margin mean? - ✔✔percent of sales keep as net income
✔✔What are three types of adjustments made to the book? - ✔✔unreported payments,
unrecorded receipts, and bank errors
✔✔What are the three types of adjustments made to the bank? - ✔✔deposit in transit,
outstanding checks, and book errors
✔✔What are examples of unreported payments? - ✔✔NSF checks and bank service
charges
✔✔What is a check called when a company does not have sufficient funds to make a
payment? - ✔✔NSF check
✔✔What are checks that do not clear the bank are called? - ✔✔outstanding checks
