ACCT 229 TAMU 2026 PRACTICE EXAM QUESTIONS
AND ANSWERS RATED A+
✔✔Machine and vehicle - ✔✔Noncurrent Asset
✔✔Accumulated Depreciation - ✔✔Noncurrent Asset and Contra Asset
✔✔Patent - ✔✔Intangible Asset
✔✔Trademark - ✔✔Intangible Asset
✔✔Copyright - ✔✔Intangible Asset
✔✔Franchise - ✔✔Intangible Asset
✔✔Goodwill - ✔✔Intangible Asset
✔✔Account Payable - ✔✔Current Liability
✔✔Wages Payable - ✔✔Current Liability
✔✔Unearned Revenue - ✔✔Current Liability
✔✔Note Payable - ✔✔Current Liability
✔✔Note Payable LT - ✔✔LT Liability
✔✔Moragage Payable - ✔✔LT Liability
✔✔Bonds Payable - ✔✔LT Liability
✔✔Common Stock - ✔✔Stock Holders Equity
✔✔Retained Earnings - ✔✔Stock Holders Equity
✔✔Freight out - ✔✔Operating Expense
✔✔Bad Debt expense - ✔✔Operating Expense
✔✔Allowance for doubtful accounts - ✔✔Contra Asset, what we expect not to collect
✔✔Working Capital - ✔✔CA - CL
, ✔✔Current Ratio - ✔✔CA/ CL
✔✔Multistep Income Statement - ✔✔Sales Revenue
(Sales return and allowance)
(Sale discount)
-------------
Net Sales
(COGS)
-------------
Gross Profit
(Expenses)
+ Gain
+ Interest Revenue
(Loss)
(Interest Expense)
-------------
Net Income
✔✔Revenue Recognition Principle - ✔✔Tells us when to record revenues. Record
revenues when the earning process is complete regardless of when cash is received.
Ex. delivered the goods or preformed a service
✔✔Matching Concept - ✔✔Tells us when to record expenses. Match revenue earned
with expenses incurred in the same accounting period when the expense helped to
generate revenue.
✔✔Deferrals - ✔✔The company has received or paid cash, but the revenue or expense
will be earned or used up in a future accounting period.
✔✔Accruals - ✔✔Record revenue or expenses when earned or used up (NOW). Cash
will be received or paid in a future accounting period.
✔✔Temporary Accounts - ✔✔Revenue, expenses, dividends, purchases
✔✔Gross Profit Formula - ✔✔Rev
(COGS)
✔✔Statement of Stockholders Equity - ✔✔Beg SHE
+ New stock
+ NI
- Div
--------------
End SHE
✔✔Definition of goodwill - ✔✔Cost to purchase - FMV
AND ANSWERS RATED A+
✔✔Machine and vehicle - ✔✔Noncurrent Asset
✔✔Accumulated Depreciation - ✔✔Noncurrent Asset and Contra Asset
✔✔Patent - ✔✔Intangible Asset
✔✔Trademark - ✔✔Intangible Asset
✔✔Copyright - ✔✔Intangible Asset
✔✔Franchise - ✔✔Intangible Asset
✔✔Goodwill - ✔✔Intangible Asset
✔✔Account Payable - ✔✔Current Liability
✔✔Wages Payable - ✔✔Current Liability
✔✔Unearned Revenue - ✔✔Current Liability
✔✔Note Payable - ✔✔Current Liability
✔✔Note Payable LT - ✔✔LT Liability
✔✔Moragage Payable - ✔✔LT Liability
✔✔Bonds Payable - ✔✔LT Liability
✔✔Common Stock - ✔✔Stock Holders Equity
✔✔Retained Earnings - ✔✔Stock Holders Equity
✔✔Freight out - ✔✔Operating Expense
✔✔Bad Debt expense - ✔✔Operating Expense
✔✔Allowance for doubtful accounts - ✔✔Contra Asset, what we expect not to collect
✔✔Working Capital - ✔✔CA - CL
, ✔✔Current Ratio - ✔✔CA/ CL
✔✔Multistep Income Statement - ✔✔Sales Revenue
(Sales return and allowance)
(Sale discount)
-------------
Net Sales
(COGS)
-------------
Gross Profit
(Expenses)
+ Gain
+ Interest Revenue
(Loss)
(Interest Expense)
-------------
Net Income
✔✔Revenue Recognition Principle - ✔✔Tells us when to record revenues. Record
revenues when the earning process is complete regardless of when cash is received.
Ex. delivered the goods or preformed a service
✔✔Matching Concept - ✔✔Tells us when to record expenses. Match revenue earned
with expenses incurred in the same accounting period when the expense helped to
generate revenue.
✔✔Deferrals - ✔✔The company has received or paid cash, but the revenue or expense
will be earned or used up in a future accounting period.
✔✔Accruals - ✔✔Record revenue or expenses when earned or used up (NOW). Cash
will be received or paid in a future accounting period.
✔✔Temporary Accounts - ✔✔Revenue, expenses, dividends, purchases
✔✔Gross Profit Formula - ✔✔Rev
(COGS)
✔✔Statement of Stockholders Equity - ✔✔Beg SHE
+ New stock
+ NI
- Div
--------------
End SHE
✔✔Definition of goodwill - ✔✔Cost to purchase - FMV
