Accy 200 SB9A UPDATED ACTUAL Exam
Questions and CORRECT Answers
The financial statement effects of recognizing cost of goods sold include: - CORRECT
ANSWER - a decrease to current assets.
a decrease to net income.
an increase to expenses.
A firm has a 40 percent gross profit ratio, Net sales = $200,000, and Cost of goods available for
sale = $170,000. Based on this information, which of the following statements are correct? -
CORRECT ANSWER - Gross profit = $80,000
Ending inventory = $50,000
When revenues are earned, the financial statement effects typically include: - CORRECT
ANSWER - Increase to net income
increase to Sales or Service Revenue
Identify the correct statements about matching principle. - CORRECT ANSWER - Some
expenses (administrative salaries, for example) are recognized in the period in which they are
incurred.
Expenses are measured by the cash or other asset used up to obtain the economic benefit they
represent.
The entry to record the recognition of cost of goods sold is: - CORRECT ANSWER - Dr. Cost
of Goods Sold Cr. Inventory
A firm has a 20 percent gross profit ratio, Net sales = $100,000, and Cost of goods available for
sale = $88,000. Based on this information, which of the following statements are correct? -
CORRECT ANSWER - Gross profit = $20,000
Ending inventory = $8,000
Cost of goods sold = $80,000
Questions and CORRECT Answers
The financial statement effects of recognizing cost of goods sold include: - CORRECT
ANSWER - a decrease to current assets.
a decrease to net income.
an increase to expenses.
A firm has a 40 percent gross profit ratio, Net sales = $200,000, and Cost of goods available for
sale = $170,000. Based on this information, which of the following statements are correct? -
CORRECT ANSWER - Gross profit = $80,000
Ending inventory = $50,000
When revenues are earned, the financial statement effects typically include: - CORRECT
ANSWER - Increase to net income
increase to Sales or Service Revenue
Identify the correct statements about matching principle. - CORRECT ANSWER - Some
expenses (administrative salaries, for example) are recognized in the period in which they are
incurred.
Expenses are measured by the cash or other asset used up to obtain the economic benefit they
represent.
The entry to record the recognition of cost of goods sold is: - CORRECT ANSWER - Dr. Cost
of Goods Sold Cr. Inventory
A firm has a 20 percent gross profit ratio, Net sales = $100,000, and Cost of goods available for
sale = $88,000. Based on this information, which of the following statements are correct? -
CORRECT ANSWER - Gross profit = $20,000
Ending inventory = $8,000
Cost of goods sold = $80,000
