ACC255 - Principles of Financial Accounting FINAL EXAM
100 REAL EXAM QUESTIONS WITH 100% RATED CORRECT
ANSWERS (ACCURATELY PASSED) 2025 LATEST UPDATED
GET A+_| LATEST VERSIONS
Express Jet borrowed $200 million on October 1, 2024, for one year at 6% interest. For what
amount does Express Jet report interest payable for the year ended December 31, 2024? -
(ANSWER)$3 million
Interest expense is reported on a note payable in the period in which - (ANSWER)the interest is
incurred.
A company purchased new equipment for $31,000 with a two-year installment note requiring 5%
interest. The required monthly payment is $1,360. For the first month's payment, what amount
represents interest expense? - (ANSWER)$129
A company purchased new equipment for $31,000 with a two-year installment note requiring 5%
interest. The required monthly payment is $1,360. After the first month's payment, what is the
balance of the note? - (ANSWER)$29,769
True or False: The market interest rate is greater than the stated interest rate. - (ANSWER)True
A current liability is a debt that can reasonably be expected to be paid... - (ANSWER)within
one year, or the operating cycle, whichever is longer.
If the market rate of interest is lower than the stated rate of interest, the bonds will sell at.. -
(ANSWER)a premium.
, At the beginning of the year, a company borrows money to buy inventory by issuing a note
payable to the bank, due and payable in one year. What effects does the issuance of the note
payable have on the financial statements? - (ANSWER)Assets increase.
Liabilities increase.
On June 1, a company issued a note for $250,000, 6%, with interest and principal due in 10
months. The company has a December 31 year-end and made the appropriate adjusting journal
entry to accrue interest at that time. What is the effect on the financial statements of the accrual
of interest at December 31? - (ANSWER)Liabilities increase.
Expenses increase.
Deferred revenue is a(n) - (ANSWER)liability account.
Glamour magazine sold $5,000 of annual subscriptions to customers on December 5, 2023, for
magazine delivery to begin on January 1, 2024. The receipt of cash on December 5 will result
in... - (ANSWER)Increase in deferred revenue.
Glamour magazine sold $5,000 of annual subscriptions to customers on December 5, 2023, for
magazine delivery to begin on January 1, 2024.
Referring to the Glamour magazine question, when the customers receive their first magazine in
January of 2024, Glamour magazine will recognize a(n) - (ANSWER)Increase in revenues
Decrease in deferred revenue
ASAP Deliveries has a total debt of $1,000,000 with payments of $100,000 due within the next
year. Which of the following is true regarding how these amounts are presented on the balance
sheet? - (ANSWER)$100,000 will be classified as a current liability, and $900,000 will be
classified as a long-term liability.
A company issues common stock for cash. What was the effect on the accounting equation? -
(ANSWER)Assets - INCREASE
Liabilities - NO EFFECT
100 REAL EXAM QUESTIONS WITH 100% RATED CORRECT
ANSWERS (ACCURATELY PASSED) 2025 LATEST UPDATED
GET A+_| LATEST VERSIONS
Express Jet borrowed $200 million on October 1, 2024, for one year at 6% interest. For what
amount does Express Jet report interest payable for the year ended December 31, 2024? -
(ANSWER)$3 million
Interest expense is reported on a note payable in the period in which - (ANSWER)the interest is
incurred.
A company purchased new equipment for $31,000 with a two-year installment note requiring 5%
interest. The required monthly payment is $1,360. For the first month's payment, what amount
represents interest expense? - (ANSWER)$129
A company purchased new equipment for $31,000 with a two-year installment note requiring 5%
interest. The required monthly payment is $1,360. After the first month's payment, what is the
balance of the note? - (ANSWER)$29,769
True or False: The market interest rate is greater than the stated interest rate. - (ANSWER)True
A current liability is a debt that can reasonably be expected to be paid... - (ANSWER)within
one year, or the operating cycle, whichever is longer.
If the market rate of interest is lower than the stated rate of interest, the bonds will sell at.. -
(ANSWER)a premium.
, At the beginning of the year, a company borrows money to buy inventory by issuing a note
payable to the bank, due and payable in one year. What effects does the issuance of the note
payable have on the financial statements? - (ANSWER)Assets increase.
Liabilities increase.
On June 1, a company issued a note for $250,000, 6%, with interest and principal due in 10
months. The company has a December 31 year-end and made the appropriate adjusting journal
entry to accrue interest at that time. What is the effect on the financial statements of the accrual
of interest at December 31? - (ANSWER)Liabilities increase.
Expenses increase.
Deferred revenue is a(n) - (ANSWER)liability account.
Glamour magazine sold $5,000 of annual subscriptions to customers on December 5, 2023, for
magazine delivery to begin on January 1, 2024. The receipt of cash on December 5 will result
in... - (ANSWER)Increase in deferred revenue.
Glamour magazine sold $5,000 of annual subscriptions to customers on December 5, 2023, for
magazine delivery to begin on January 1, 2024.
Referring to the Glamour magazine question, when the customers receive their first magazine in
January of 2024, Glamour magazine will recognize a(n) - (ANSWER)Increase in revenues
Decrease in deferred revenue
ASAP Deliveries has a total debt of $1,000,000 with payments of $100,000 due within the next
year. Which of the following is true regarding how these amounts are presented on the balance
sheet? - (ANSWER)$100,000 will be classified as a current liability, and $900,000 will be
classified as a long-term liability.
A company issues common stock for cash. What was the effect on the accounting equation? -
(ANSWER)Assets - INCREASE
Liabilities - NO EFFECT
