Financial Accounting Exam 2 TTU Questions
And Answers
A physician performs medical services for a patient on October 20; the total bill for the medical
services was $200. The patient makes a copay of $20 on October 20, and the insurance company
pays the remaining balance of $180 on November 19. On what date(s) will the physician record
the revenue for those medical services provided on October 20? (Assume accrual basis)
A. $200 of revenue on October 20
B. $20 of revenue on October 20 and $180 of revenue on November 19
C. $180 of revenue on October 20 and the remaining $20 on November 19
D. $200 of revenue on November 19 A
The Animal Adventure zoo gift shop sells stuffed animal toys. It's stuffed giraffe has a suggested
retail price of $19.95. The zoo initially priced it at $17.99, but it is now marked down to $13.50.
At other zoos, this same stuffed giraffe is priced at $15.99. An Animal Adventure zoo customer
purchases the giraffe for $13.50 from the gift shop. At what price should Animal Adventure
record the sale?
A. $19.95
B. $13.50
C. $17.99
D. $15.99 B
,Financial Accounting Exam 2 TTU Questions
And Answers
According to U.S. GAAP, when should revenue be recorded?
A. At the stated date in the contract
B. When the goods or services have been priced and offered for sale
C. When the service is performed or the goods have been delivered to the customer
D. When cash is received from the customer C
All of the following are types of adjusting entries except
A. Depreciation
B. Deferrals
C. Transactions
D. Accruals C
AllTech Corporation had a balance of $2,400 in Prepaid Supplies at the beginning of the year.
The company purchased $900 of supplies during the year. At year end, Prepaid Supplies had a
balance of $2,500. What is the amount of Supplies Expense that AllTech Corporation will
recognize for this year?
A. $1,000
, Financial Accounting Exam 2 TTU Questions
And Answers
B. $900
C. $2,500
D. $800 D, remember Suppilies Expense is calculated as follows, (Beginning Prepaid
Supplies balance + purchase of supplies - Ending Prepaid Supplies balance)
In this case ($2,400 + $900 - $2400 = $800)
What type of account is unearned revenue?
A. Asset
B. Revenue
C. Liability
D. Expense C
What data flows from the statement of retained earnings to the balance sheet?
A. Assets
B. Ending retained earnings
C. Cash
D. Net income B
And Answers
A physician performs medical services for a patient on October 20; the total bill for the medical
services was $200. The patient makes a copay of $20 on October 20, and the insurance company
pays the remaining balance of $180 on November 19. On what date(s) will the physician record
the revenue for those medical services provided on October 20? (Assume accrual basis)
A. $200 of revenue on October 20
B. $20 of revenue on October 20 and $180 of revenue on November 19
C. $180 of revenue on October 20 and the remaining $20 on November 19
D. $200 of revenue on November 19 A
The Animal Adventure zoo gift shop sells stuffed animal toys. It's stuffed giraffe has a suggested
retail price of $19.95. The zoo initially priced it at $17.99, but it is now marked down to $13.50.
At other zoos, this same stuffed giraffe is priced at $15.99. An Animal Adventure zoo customer
purchases the giraffe for $13.50 from the gift shop. At what price should Animal Adventure
record the sale?
A. $19.95
B. $13.50
C. $17.99
D. $15.99 B
,Financial Accounting Exam 2 TTU Questions
And Answers
According to U.S. GAAP, when should revenue be recorded?
A. At the stated date in the contract
B. When the goods or services have been priced and offered for sale
C. When the service is performed or the goods have been delivered to the customer
D. When cash is received from the customer C
All of the following are types of adjusting entries except
A. Depreciation
B. Deferrals
C. Transactions
D. Accruals C
AllTech Corporation had a balance of $2,400 in Prepaid Supplies at the beginning of the year.
The company purchased $900 of supplies during the year. At year end, Prepaid Supplies had a
balance of $2,500. What is the amount of Supplies Expense that AllTech Corporation will
recognize for this year?
A. $1,000
, Financial Accounting Exam 2 TTU Questions
And Answers
B. $900
C. $2,500
D. $800 D, remember Suppilies Expense is calculated as follows, (Beginning Prepaid
Supplies balance + purchase of supplies - Ending Prepaid Supplies balance)
In this case ($2,400 + $900 - $2400 = $800)
What type of account is unearned revenue?
A. Asset
B. Revenue
C. Liability
D. Expense C
What data flows from the statement of retained earnings to the balance sheet?
A. Assets
B. Ending retained earnings
C. Cash
D. Net income B
