ACCOUNTING CRASH COURSE EXAM NEWEST 2025
ACTUAL EXAM WITH COMPLETE 70+ QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
ALREADY GRADED A+ | GUARANTEED PASS
A company reports $100 million total asset balance on December 31, 2019 and
net income of $10 million for the year ending December 31, 2019. Which of the
following transactions during 2020 would most directly result in a decrease in
return on assets (ROA)? Assume end of year balances for calculating ROA and
ignore the impact of taxes and evaluate each transaction independently.
A) On June 30, 2020 the company pays a vendor $5 million for recent inventory
purchases.
B) The company purchases a $5 million non-depreciable fixed asset on January 1,
2020, financed with a $5 million note at 10% annual interest. The asset produces
$0.5 million in incremental operating income during 2020.
C) The company repays a $5 million loan obligation on January 1, 2020, that it was
paying 5% annual interest.
D) The company announces a 5% across-the-board decrease in the price of the
products it sells. - ✔✔✔ Correct Answer > B) The company purchases a $5 million non-
depreciable fixed asset on January 1, 2020, financed with a $5 million note at 10%
annual interest. The asset produces $0.5 million in incremental operating income
during 2020.
The regulating body that oversees the development of accounting standards in
the U.S. is:
A) SFAS
,B) GAAP
C) FASB
D) IASB - ✔✔✔ Correct Answer > C) FASB
The "matching principle" states that:
A) Costs associated with making a product must be recognized at the end of the
production process
B) Costs associated with making a product must be recognized immediately as
incurred
C) Costs associated with making a product must be recognized during the same
period as revenue generated from that product
D) Costs associated with making a product must be recorded during the sam
period as the sales, general, and administrative expenses that are also associated
with the product - ✔✔✔ Correct Answer > C) Costs associated with making a product must
be recognized during the same period as revenue generated from that product
Which of the following statements is true?
A) GAAP requires that firms show recorded values for acquired intangible assets
such as patents and trademarks on their financial statements
B) GAAP requires that firms show recorded values for intangible assets such as
employee and customer loyalty
C) GAAP requires that financial statements accurately reflects the market value of
internally-developed trademarks such as the value of the Coca-Cola brand name.
D) All of the above - ✔✔✔ Correct Answer > A) GAAP requires that firms show recorded
values for acquired intangible assets such as patents and trademarks on their
financial statements
, Which of the following statements is true?
A) Publicly traded US companies are required to file four 10-Q's and one 10-K
annually
B) All US companies are required to file three 10-Q's and one 10-K annually
C) Publicly traded US companies are required to file three 10-Q's and one 10-K
annually
D) Publicly traded US companies are required to file one 10-K annually; 10-Q's are
typically filed but are technically voluntary. - ✔✔✔ Correct Answer > C) Publicly traded US
companies are required to file three 10-Q's and one 10-K annually
The income statement is designed to measure:
A) The liquidity of a firm
B) How solvent a company has been
C) The income of a firm at a point in time
D) Cash inflows/outflows generated over a period of time
E) The profits of a firm over a period of time - ✔✔✔ Correct Answer > E) The profits of a
firm over a period of time
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
ACTUAL EXAM WITH COMPLETE 70+ QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
ALREADY GRADED A+ | GUARANTEED PASS
A company reports $100 million total asset balance on December 31, 2019 and
net income of $10 million for the year ending December 31, 2019. Which of the
following transactions during 2020 would most directly result in a decrease in
return on assets (ROA)? Assume end of year balances for calculating ROA and
ignore the impact of taxes and evaluate each transaction independently.
A) On June 30, 2020 the company pays a vendor $5 million for recent inventory
purchases.
B) The company purchases a $5 million non-depreciable fixed asset on January 1,
2020, financed with a $5 million note at 10% annual interest. The asset produces
$0.5 million in incremental operating income during 2020.
C) The company repays a $5 million loan obligation on January 1, 2020, that it was
paying 5% annual interest.
D) The company announces a 5% across-the-board decrease in the price of the
products it sells. - ✔✔✔ Correct Answer > B) The company purchases a $5 million non-
depreciable fixed asset on January 1, 2020, financed with a $5 million note at 10%
annual interest. The asset produces $0.5 million in incremental operating income
during 2020.
The regulating body that oversees the development of accounting standards in
the U.S. is:
A) SFAS
,B) GAAP
C) FASB
D) IASB - ✔✔✔ Correct Answer > C) FASB
The "matching principle" states that:
A) Costs associated with making a product must be recognized at the end of the
production process
B) Costs associated with making a product must be recognized immediately as
incurred
C) Costs associated with making a product must be recognized during the same
period as revenue generated from that product
D) Costs associated with making a product must be recorded during the sam
period as the sales, general, and administrative expenses that are also associated
with the product - ✔✔✔ Correct Answer > C) Costs associated with making a product must
be recognized during the same period as revenue generated from that product
Which of the following statements is true?
A) GAAP requires that firms show recorded values for acquired intangible assets
such as patents and trademarks on their financial statements
B) GAAP requires that firms show recorded values for intangible assets such as
employee and customer loyalty
C) GAAP requires that financial statements accurately reflects the market value of
internally-developed trademarks such as the value of the Coca-Cola brand name.
D) All of the above - ✔✔✔ Correct Answer > A) GAAP requires that firms show recorded
values for acquired intangible assets such as patents and trademarks on their
financial statements
, Which of the following statements is true?
A) Publicly traded US companies are required to file four 10-Q's and one 10-K
annually
B) All US companies are required to file three 10-Q's and one 10-K annually
C) Publicly traded US companies are required to file three 10-Q's and one 10-K
annually
D) Publicly traded US companies are required to file one 10-K annually; 10-Q's are
typically filed but are technically voluntary. - ✔✔✔ Correct Answer > C) Publicly traded US
companies are required to file three 10-Q's and one 10-K annually
The income statement is designed to measure:
A) The liquidity of a firm
B) How solvent a company has been
C) The income of a firm at a point in time
D) Cash inflows/outflows generated over a period of time
E) The profits of a firm over a period of time - ✔✔✔ Correct Answer > E) The profits of a
firm over a period of time
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
