ACCY 201 EXAM 2 2026 FINANCIAL
STATEMENTS WORKBOOK SOLVED
QUESTIONS COMPILATION
◉ Accounts receivable turnover is calculated as
Answer: Net sales divided by average accounts receivable
◉ Allowance for uncollectible accounts is a(n)
Answer: Contra-asset account
◉ PaintMe, Inc. paints a racecar on March 31. The customer picks up
the racecar on May 31 and mails the payment to PaintMe on August
5. PaintMe receives the check in the mail on August 8. When should
PaintMe record that the revenue was earned
Answer: March 31
◉ My company pays employees every Friday. What is the effect on
the accounting equation if the employees worked for 5 days and
make $2,000 a day?
Answer: A.Increase salary expense by $10,000
B.Decrease cash by $10,000
C.Decrease equity by $10,000
, D.Decrease net income by $10,000
◉ Timmy's Tires sold $18,750 worth of tires to customers using
MasterCard. The credit card fee is 4% of sales. A.What is the amount
of cash Timmy's Tires should collect from sales?
B.What amount of sales should Timmy's Tires recognize? C.What
amount of credit card fees should Timmy's Tires recognize?
Answer: A. $18,000
B. $18,750
C. $750
◉ A deferral is
Answer: a transaction in which the exchange of dollars comes before
the action takes place
◉ Which of the following is an example of an accrual?
Answer: Interest expense incurred by not yet paid
◉ Which of the following choices are Accruals?
Answer: 1. Action 1st, Dollar later
2. are transactions in which the revenue has been earned or the
expense has been incurred, but not cash has been exchanged (cash
exchange occurs after the event).
STATEMENTS WORKBOOK SOLVED
QUESTIONS COMPILATION
◉ Accounts receivable turnover is calculated as
Answer: Net sales divided by average accounts receivable
◉ Allowance for uncollectible accounts is a(n)
Answer: Contra-asset account
◉ PaintMe, Inc. paints a racecar on March 31. The customer picks up
the racecar on May 31 and mails the payment to PaintMe on August
5. PaintMe receives the check in the mail on August 8. When should
PaintMe record that the revenue was earned
Answer: March 31
◉ My company pays employees every Friday. What is the effect on
the accounting equation if the employees worked for 5 days and
make $2,000 a day?
Answer: A.Increase salary expense by $10,000
B.Decrease cash by $10,000
C.Decrease equity by $10,000
, D.Decrease net income by $10,000
◉ Timmy's Tires sold $18,750 worth of tires to customers using
MasterCard. The credit card fee is 4% of sales. A.What is the amount
of cash Timmy's Tires should collect from sales?
B.What amount of sales should Timmy's Tires recognize? C.What
amount of credit card fees should Timmy's Tires recognize?
Answer: A. $18,000
B. $18,750
C. $750
◉ A deferral is
Answer: a transaction in which the exchange of dollars comes before
the action takes place
◉ Which of the following is an example of an accrual?
Answer: Interest expense incurred by not yet paid
◉ Which of the following choices are Accruals?
Answer: 1. Action 1st, Dollar later
2. are transactions in which the revenue has been earned or the
expense has been incurred, but not cash has been exchanged (cash
exchange occurs after the event).
