Exam Questions And
Correct Answers 2026
Building - ANSWER -Noncurrent Asset
Equipment - ANSWER -Noncurrent Asset
Furniture and fixtures - ANSWER -Noncurrent Asset
Machine and vehicle - ANSWER -Noncurrent Asset
Accumulated Depreciation - ANSWER -Noncurrent Asset and Contra
Asset
Patent - ANSWER -Intangible Asset
Trademark - ANSWER -Intangible Asset
Copyright - ANSWER -Intangible Asset
Franchise - ANSWER -Intangible Asset
Goodwill - ANSWER -Intangible Asset
Account Payable - ANSWER -Current Liability
Wages Payable - ANSWER -Current Liability
Unearned Revenue - ANSWER -Current Liability
Note Payable - ANSWER -Current Liability
Note Payable LT - ANSWER -LT Liability
Moragage Payable - ANSWER -LT Liability
Bonds Payable - ANSWER -LT Liability
Common Stock - ANSWER -Stock Holders Equity
, Retained Earnings - ANSWER -Stock Holders Equity
DEAD - ANSWER -Debits increase expenses, assets, and dividends.
Gross Profit Ratio - ANSWER -Gross Profit/ Sales
Profit Margin - ANSWER -Net Income/ Sales
Cash - ANSWER -Current Asset
Marketable Equity Security - ANSWER -Current Asset
Accounts Receivable - ANSWER -Current Asset
Inventory - ANSWER -Current Asset
Supplies on hand - ANSWER -Current Asset
Prepaid Expenses - ANSWER -Current Asset
Land - ANSWER -Noncurrent Asset
Freight out - ANSWER -Operating Expense
Bad Debt expense - ANSWER -Operating Expense
Allowance for doubtful accounts - ANSWER -Contra Asset, what we
expect not to collect
Working Capital - ANSWER -CA - CL
Current Ratio - ANSWER -CA/ CL
Multistep Income Statement - ANSWER -Sales Revenue