COB 241 FINAL CERTIFICATION TEST
2026 QUESTIONS WITH ANSWERS
GRADED A+
>> Natural Resources
Answer: Depletion expense
>> Materiality Principle
Answer: A financial amount is said to be a material if it can make a difference and should be presented
in financial statements
>> Financial accounting
Answer: Preparing statements for outsiders
>> Periodic Inventory System
Answer: Inventory is often physically counted
>> Buildings/equipment
Answer: Depreciation expense
>> Managerial accounting
Answer: Preparing statements for managers and executives
>> Gross Margin
Answer: total sales (revenue) - Cost of Goods Sold
>> Operational Expenses
Answer: *Selling - Associated with finding and keeping customers happy. Transportation out (FOB
Destination) is selling expense if your're the seller
>> patients/copyrights
Answer: Identifiable lifespan
>> Non-operational expenses
Answer: Interest, Taxes, Depreciation, Amortization (reduction of an intangible asset)
>> Balance sheet
Answer: Shows financial position at the end of reporting period *Assets = Liabilities + Equity
>> Brands/goodwill
, Answer: Indeterminate lifespan
>> Purchase Order
Answer: A contract between 2 countries issued by the purchaser and acknowledged by the seller.
>> Income Statement
Answer: Shows the result of operations monthly/quarterly/yearly
>> Period Principle
Answer: Accounting records are always kept for a period of time
>> Boilerplate
Answer: Terms and conditions that must be specified on front or the back. If there are conflicts the
front conditions win.
>> Land
Answer: Classified separately because it isn't subject to depletion or depreciation. Value is separated
from basket purchases.
>> Allowance for Doubtful Accounts (For bad Debit)
Answer: Contra-asset account that reduces A/R
>> Sales Returns, Sales allowances, Cash Discounts on Sales
Answer: Contra-Revenue on financial statements
>> Matching Principle
Answer: Statements should only show revenue and expenses incurred during the period
>> Bad Debt Expense Account
Answer: Account that Allowance for Doubtful Accounts is expended into
>> Net Sales
Answer: Gross Sales - Returns, Allowances, and Discounts
>> Striking (closing) financial statements
Answer: 1. Unadjusted Trial Balance.
>> FIFO
Answer: Pros: Enhances value of remaining inventory during inflation. Practical
>> Direct Write Off Method
2026 QUESTIONS WITH ANSWERS
GRADED A+
>> Natural Resources
Answer: Depletion expense
>> Materiality Principle
Answer: A financial amount is said to be a material if it can make a difference and should be presented
in financial statements
>> Financial accounting
Answer: Preparing statements for outsiders
>> Periodic Inventory System
Answer: Inventory is often physically counted
>> Buildings/equipment
Answer: Depreciation expense
>> Managerial accounting
Answer: Preparing statements for managers and executives
>> Gross Margin
Answer: total sales (revenue) - Cost of Goods Sold
>> Operational Expenses
Answer: *Selling - Associated with finding and keeping customers happy. Transportation out (FOB
Destination) is selling expense if your're the seller
>> patients/copyrights
Answer: Identifiable lifespan
>> Non-operational expenses
Answer: Interest, Taxes, Depreciation, Amortization (reduction of an intangible asset)
>> Balance sheet
Answer: Shows financial position at the end of reporting period *Assets = Liabilities + Equity
>> Brands/goodwill
, Answer: Indeterminate lifespan
>> Purchase Order
Answer: A contract between 2 countries issued by the purchaser and acknowledged by the seller.
>> Income Statement
Answer: Shows the result of operations monthly/quarterly/yearly
>> Period Principle
Answer: Accounting records are always kept for a period of time
>> Boilerplate
Answer: Terms and conditions that must be specified on front or the back. If there are conflicts the
front conditions win.
>> Land
Answer: Classified separately because it isn't subject to depletion or depreciation. Value is separated
from basket purchases.
>> Allowance for Doubtful Accounts (For bad Debit)
Answer: Contra-asset account that reduces A/R
>> Sales Returns, Sales allowances, Cash Discounts on Sales
Answer: Contra-Revenue on financial statements
>> Matching Principle
Answer: Statements should only show revenue and expenses incurred during the period
>> Bad Debt Expense Account
Answer: Account that Allowance for Doubtful Accounts is expended into
>> Net Sales
Answer: Gross Sales - Returns, Allowances, and Discounts
>> Striking (closing) financial statements
Answer: 1. Unadjusted Trial Balance.
>> FIFO
Answer: Pros: Enhances value of remaining inventory during inflation. Practical
>> Direct Write Off Method
