ACCOUNTING CRASH COURSE EXAM FROM WALL
STREET PREP ACTUAL EXAM QUESTIONS AND
CORRECT ANSWERS GRADED A+ 2025/ ACTUAL WSP
ACCOUNTING CRASH COURSE EXAM LATEST EXAM
VERSION>>MOST TESTED QUESTIONS
On January 1, 2025, a company purchases equipment with a useful life of 5 years for $50 million. The
company uses straight-line depreciation and has assumed no residual value for the company. On
January 1, 2024, the company sells the equipment for $45 million.
Which of the following is correct?
A) When the company sells the equipment, it will recognize a $15 million gain on sale on the income
statement.
B) When the company sells the equipment, it will recognize a $5 million loss on sale on the income
statement.
C) When the company sells the equipment, it will recognize a $25 million gain on sale on the income
statement.
D) When the company sells the equipment, it will recognize a $45 million gain on sale on the income
statement. - ANSWER****C) When the company sells the equipment, it will recognize a $25 million gain
on sale on the income statement.
During 2024, Boston Company's assets increased $95,500 and the liabilities decreased $17,300. Boston
Company's stockholders' equity at December 31, 2014 was $211,500. What amount was stockholders'
equity at January 1, 2024? - ANSWER****$98,700
Consider a single business transaction's impact on the balance sheet. Which of the following could NOT
possibly occur as a result of this single transaction?
A) An increase in an asset and a decrease in an asset.
B) A decrease in stockholders' equity and a decrease in an asset.
C) An increase in a liability and a decrease in an asset.
D) An increase in stockholders' equity and an increase in an asset. - ANSWER****C) An increase in a
liability and a decrease in an asset.
A company's June 1, 2022 balance sheet reported total assets of $150,000 and total liabilities of
$60,000. During June 2022, the company completed the following transactions:
,- Paid a note payable using $10,000 cash (no interest was paid)
- Collected a $9,000 accounts receivable
- Paid a $5,000 accounts payable
- Purchased a truck for $5,000 cash and by signing a $20,000 note payable from a bank.
The company's June 30, 2014 balance sheet would report which of the following?
A) $150,000 assets, $60,000 liabilities, $90,000 Stockholder's Equity
B) $155,000 assets, $65,000 liabilities, $90,000 Stockholder's Equity
C) $160,000 assets, $75,000 liabilities, $85,000 Stockholder's Equity
D) $170,000 assets, $100,000 liabilities, $70,000 Stockholder's Equity - ANSWER****Option B) $155,000
assets, $65,000 liabilities, $90,000 Stockholder's Equity
A company's June 1, 2024 balance sheet reported total assets of $120,000 and total liabilities of
$40,000. During June 2024, the following transactions occurred:
1. The company issued stock and collected cash totaling $30,000.
2. The company paid an account payable of $6,000.
3. The company purchased supplies for $1,000 with cash.
4. The company purchased land for $60,000 by paying $10,000 with cash and signing a note payable for
the balance.
What is total stockholders' equity after the transactions above? - ANSWER****$110,000
Lemon has provided the following information for its recent year of operation:
- The common stock account balance at the beginning of the year was $20,000 and the year-end balance
was $25,000.
- The additional paid-in capital account balance increased $2,500 during the year.
- The retained earnings balance at the beginning of the year was $75,000 and the year-end balance was
$91,000.
- Net income was $26,000.
How much were Lemon's dividends during its recent year of operation? - ANSWER****$10,000
(Ending retained Earnings = Beginning Retained Earnings + Net Income - Dividends declared)
, At the beginning of MARCH, Jamie Corporation's assets totaled $240,000 and liabilities totaled $60,000.
During April, the following summarized transactions occurred:
- Additional shares of stock were sold for $20,000 cash.
- A building costing $95,000 was purchased using $10,000 cash and by signing an $85,000 long-term
note payable.
- Short-term investments costing $9,000 were purchased using cash.
- $10,000 was paid to an employee as a loan; the employee signed a six-month note in exchange for the
loan.
How much are Jamie's total assets at the end of April? - ANSWER****$345,000
ABC Company's total stockholders' equity at the beginning of the year was $200,000. During the year
ABC reported the following:
- Net loss of $30,000.
- Stock issued in exchange for land totaling $80,000.
- Collections of accounts receivable $40,000.
- Dividends paid totaling $2000.
What is ABC's total stockholders' equity at the end of the year? - ANSWER****$248,000
During 2014, Jones Corporation incurred operating expenses amounting to $100,000 of which $75,000
was paid in cash; the remaining balance will be paid during 2015. Which of the following is correct for
the 2014 year-end balance sheet?
A) Stockholders' equity decreases $75,000 and assets decrease $75,000.
B) Assets decrease $100,000 and stockholders' equity decreases $100,000.
C) Assets decrease $100,000, liabilities increase $25,000, and stockholders' equity decreases $100,000.
D) Stockholders' equity decreases $100,000, assets decrease $75,000, and liabilities increase $25,000. -
ANSWER****D) Stockholders' equity decreases $100,000, assets decrease $75,000, and liabilities
increase $25,000.
Jimmie Inc. is preparing a statement of stockholders' equity for 2014.
- On January 1, 2014, Jimmie started the year with a $200,000 credit balance in its retained earnings
account.
STREET PREP ACTUAL EXAM QUESTIONS AND
CORRECT ANSWERS GRADED A+ 2025/ ACTUAL WSP
ACCOUNTING CRASH COURSE EXAM LATEST EXAM
VERSION>>MOST TESTED QUESTIONS
On January 1, 2025, a company purchases equipment with a useful life of 5 years for $50 million. The
company uses straight-line depreciation and has assumed no residual value for the company. On
January 1, 2024, the company sells the equipment for $45 million.
Which of the following is correct?
A) When the company sells the equipment, it will recognize a $15 million gain on sale on the income
statement.
B) When the company sells the equipment, it will recognize a $5 million loss on sale on the income
statement.
C) When the company sells the equipment, it will recognize a $25 million gain on sale on the income
statement.
D) When the company sells the equipment, it will recognize a $45 million gain on sale on the income
statement. - ANSWER****C) When the company sells the equipment, it will recognize a $25 million gain
on sale on the income statement.
During 2024, Boston Company's assets increased $95,500 and the liabilities decreased $17,300. Boston
Company's stockholders' equity at December 31, 2014 was $211,500. What amount was stockholders'
equity at January 1, 2024? - ANSWER****$98,700
Consider a single business transaction's impact on the balance sheet. Which of the following could NOT
possibly occur as a result of this single transaction?
A) An increase in an asset and a decrease in an asset.
B) A decrease in stockholders' equity and a decrease in an asset.
C) An increase in a liability and a decrease in an asset.
D) An increase in stockholders' equity and an increase in an asset. - ANSWER****C) An increase in a
liability and a decrease in an asset.
A company's June 1, 2022 balance sheet reported total assets of $150,000 and total liabilities of
$60,000. During June 2022, the company completed the following transactions:
,- Paid a note payable using $10,000 cash (no interest was paid)
- Collected a $9,000 accounts receivable
- Paid a $5,000 accounts payable
- Purchased a truck for $5,000 cash and by signing a $20,000 note payable from a bank.
The company's June 30, 2014 balance sheet would report which of the following?
A) $150,000 assets, $60,000 liabilities, $90,000 Stockholder's Equity
B) $155,000 assets, $65,000 liabilities, $90,000 Stockholder's Equity
C) $160,000 assets, $75,000 liabilities, $85,000 Stockholder's Equity
D) $170,000 assets, $100,000 liabilities, $70,000 Stockholder's Equity - ANSWER****Option B) $155,000
assets, $65,000 liabilities, $90,000 Stockholder's Equity
A company's June 1, 2024 balance sheet reported total assets of $120,000 and total liabilities of
$40,000. During June 2024, the following transactions occurred:
1. The company issued stock and collected cash totaling $30,000.
2. The company paid an account payable of $6,000.
3. The company purchased supplies for $1,000 with cash.
4. The company purchased land for $60,000 by paying $10,000 with cash and signing a note payable for
the balance.
What is total stockholders' equity after the transactions above? - ANSWER****$110,000
Lemon has provided the following information for its recent year of operation:
- The common stock account balance at the beginning of the year was $20,000 and the year-end balance
was $25,000.
- The additional paid-in capital account balance increased $2,500 during the year.
- The retained earnings balance at the beginning of the year was $75,000 and the year-end balance was
$91,000.
- Net income was $26,000.
How much were Lemon's dividends during its recent year of operation? - ANSWER****$10,000
(Ending retained Earnings = Beginning Retained Earnings + Net Income - Dividends declared)
, At the beginning of MARCH, Jamie Corporation's assets totaled $240,000 and liabilities totaled $60,000.
During April, the following summarized transactions occurred:
- Additional shares of stock were sold for $20,000 cash.
- A building costing $95,000 was purchased using $10,000 cash and by signing an $85,000 long-term
note payable.
- Short-term investments costing $9,000 were purchased using cash.
- $10,000 was paid to an employee as a loan; the employee signed a six-month note in exchange for the
loan.
How much are Jamie's total assets at the end of April? - ANSWER****$345,000
ABC Company's total stockholders' equity at the beginning of the year was $200,000. During the year
ABC reported the following:
- Net loss of $30,000.
- Stock issued in exchange for land totaling $80,000.
- Collections of accounts receivable $40,000.
- Dividends paid totaling $2000.
What is ABC's total stockholders' equity at the end of the year? - ANSWER****$248,000
During 2014, Jones Corporation incurred operating expenses amounting to $100,000 of which $75,000
was paid in cash; the remaining balance will be paid during 2015. Which of the following is correct for
the 2014 year-end balance sheet?
A) Stockholders' equity decreases $75,000 and assets decrease $75,000.
B) Assets decrease $100,000 and stockholders' equity decreases $100,000.
C) Assets decrease $100,000, liabilities increase $25,000, and stockholders' equity decreases $100,000.
D) Stockholders' equity decreases $100,000, assets decrease $75,000, and liabilities increase $25,000. -
ANSWER****D) Stockholders' equity decreases $100,000, assets decrease $75,000, and liabilities
increase $25,000.
Jimmie Inc. is preparing a statement of stockholders' equity for 2014.
- On January 1, 2014, Jimmie started the year with a $200,000 credit balance in its retained earnings
account.
