Accounting Crash Course REAL EXAM QUESTIONS
AND CORRECT ANSWERS 2025/GRADED A+
The regulating body that oversees the development of accounting standards in
the U.S. is:
SFAS
GAAP
FASB
IASB - (answer)FASB formulates accounting standards through the issuance of
Statements of Financial Accounting Standards (SFAS). These statements make up
the body of accounting rules known as the Generally Accepted Accounting
Principles (GAAP). IASB oversees international financial reporting standards (IFRS).
Which of the following statements is TRUE?
GAAP requires that firms show recorded values for acquired intangible assets
such as patents and trademarks on their financial statements.
GAAP requires that firms show recorded values for intangible assets such as
employee and customer loyalty.
GAAP requires that financial statements accurately reflects the market value of
internally-developed trademarks such as the value of the Coca-Cola brand name.
All of the above. - (answer)GAAP requires that firms show recorded values for
acquired intangible assets such as patents and trademarks on their financial
statements. GAAP requires that firms only show measurable activities, such as the
value of acquired intangible assets. Assets such as employee, customer loyalty
and internally-developed trademarks are not shown on financial statements
because they're difficult to quantify.
,Which of the following statements is TRUE?
Publicly traded US companies are required to file four 10-Q's and one 10-K
annually.
All US companies are required to file three 10-Q's and one 10-K annually.
Publicly traded US companies are required to file three 10-Q's and one 10-K
annually.
Publicly traded US companies are required to file one 10-K annually; 10-Q's are
typically filed but are technically voluntary. - (answer)Publicly traded US
companies are required to file three 10-Q's and one 10-K annually.
Publicly-traded US companies must file three quarterly (10-Q) reports at the end
of their 1Q, 2Q and 3Q, and a 10-K at the end of their fiscal year.
he income statement is designed to measure:
The liquidity of a firm.
How solvent a company has been.
The income of a firm at a point in time.
Cash inflows/outflows generated over a period of time.
The profits of a firm over a period of time. - (answer)The profits of a firm over a
period of time. The income statement is designed to show the profitability of a
business (revenues less expenses) over a period of time (usually a quarter or
year). The income statement is an accrual measure of profits and thus not the
best measure of cash flows. It is also a poor measure of a company's liquidity or
solvency, which involves an analysis of a company's short term and long term
assets and liabilities, respectively. The balance sheet is designed to show a firm's
financial position, while the cash flow statement shows the amount of cash
generated by a firm.
, The "matching principle" states that:
Costs associated with making a product must be recognized at the end of the
production process.
Costs associated with making a product must be recognized immediately as
incurred.
Costs associated with making a product must be recognized during the same
period as revenue generated from that product.
Costs associated with making a product must be recorded during the same period
as the sales, general, and administrative expenses that are also associated with
the product. - (answer)Costs associated with making a product must be
recognized during the same period as revenue generated from that product.
Jones Company has provided the following information:
Cash sales totaled $255,000.
Credit sales totaled $479,000.
Interest income was $7,700.
Interest expense was $19,900.
Cost of goods sold was $336,000.
Rent expense was $36,000.
Salaries expense was $49,000.
Other operating expenses totaled $79,000.
How much was Jones' operating income? - (answer)234,000
Operating revenues = $734,000 = $255,000 + $479,000.
AND CORRECT ANSWERS 2025/GRADED A+
The regulating body that oversees the development of accounting standards in
the U.S. is:
SFAS
GAAP
FASB
IASB - (answer)FASB formulates accounting standards through the issuance of
Statements of Financial Accounting Standards (SFAS). These statements make up
the body of accounting rules known as the Generally Accepted Accounting
Principles (GAAP). IASB oversees international financial reporting standards (IFRS).
Which of the following statements is TRUE?
GAAP requires that firms show recorded values for acquired intangible assets
such as patents and trademarks on their financial statements.
GAAP requires that firms show recorded values for intangible assets such as
employee and customer loyalty.
GAAP requires that financial statements accurately reflects the market value of
internally-developed trademarks such as the value of the Coca-Cola brand name.
All of the above. - (answer)GAAP requires that firms show recorded values for
acquired intangible assets such as patents and trademarks on their financial
statements. GAAP requires that firms only show measurable activities, such as the
value of acquired intangible assets. Assets such as employee, customer loyalty
and internally-developed trademarks are not shown on financial statements
because they're difficult to quantify.
,Which of the following statements is TRUE?
Publicly traded US companies are required to file four 10-Q's and one 10-K
annually.
All US companies are required to file three 10-Q's and one 10-K annually.
Publicly traded US companies are required to file three 10-Q's and one 10-K
annually.
Publicly traded US companies are required to file one 10-K annually; 10-Q's are
typically filed but are technically voluntary. - (answer)Publicly traded US
companies are required to file three 10-Q's and one 10-K annually.
Publicly-traded US companies must file three quarterly (10-Q) reports at the end
of their 1Q, 2Q and 3Q, and a 10-K at the end of their fiscal year.
he income statement is designed to measure:
The liquidity of a firm.
How solvent a company has been.
The income of a firm at a point in time.
Cash inflows/outflows generated over a period of time.
The profits of a firm over a period of time. - (answer)The profits of a firm over a
period of time. The income statement is designed to show the profitability of a
business (revenues less expenses) over a period of time (usually a quarter or
year). The income statement is an accrual measure of profits and thus not the
best measure of cash flows. It is also a poor measure of a company's liquidity or
solvency, which involves an analysis of a company's short term and long term
assets and liabilities, respectively. The balance sheet is designed to show a firm's
financial position, while the cash flow statement shows the amount of cash
generated by a firm.
, The "matching principle" states that:
Costs associated with making a product must be recognized at the end of the
production process.
Costs associated with making a product must be recognized immediately as
incurred.
Costs associated with making a product must be recognized during the same
period as revenue generated from that product.
Costs associated with making a product must be recorded during the same period
as the sales, general, and administrative expenses that are also associated with
the product. - (answer)Costs associated with making a product must be
recognized during the same period as revenue generated from that product.
Jones Company has provided the following information:
Cash sales totaled $255,000.
Credit sales totaled $479,000.
Interest income was $7,700.
Interest expense was $19,900.
Cost of goods sold was $336,000.
Rent expense was $36,000.
Salaries expense was $49,000.
Other operating expenses totaled $79,000.
How much was Jones' operating income? - (answer)234,000
Operating revenues = $734,000 = $255,000 + $479,000.
