ACCOUNTING CRASH COURSE ACTUAL EXAM 2025 NEWEST FROM WALL STREET PREP QUESTIONS
Accounting
WITH DETAILED VERIFIEDCrash ANSWERS Course/ WSP ACCOUNTING CRASHCOURSE ACTUAL LATEST EXAM/
WALLSTREET PREP
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1. The regulating body that oversees the development of C) FASB
accounting standards in the U.S. is:
A) SFAS
B) GAAP
C) FASB
D) IASB
2. Which of the following statements is true? A) GAAP requires that firms
A) GAAP requires that firms show recorded values for show recorded values for
acquired intangible assets such as patents and trade- acquired intangible assets
marks on their financial statements such as patents and trade-
B) GAAP requires that firms show recorded values for marks on their financial
intangible assets such as employee and customer loy- statements
alty
C) GAAP requires that financial statements accurate-
ly reflects the market value of internally-developed
trademarks such as the value of the Coca-Cola brand
name.
D) All of the above
3. Which of the following statements is true? C) Publicly traded US com-
A) Publicly traded US companies are required to file panies are required to file
four 10-Q's and one 10-K annually three 10-Q's and one 10-K
B) All US companies are required to file three 10-Q's annually
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.
4.
, Accounting Crash Course
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The income statement is designed to measure: E) The profits of a firm over
A) The liquidity of a firm a period of time
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
5. The "matching principle" states that: C) Costs associated with
A) Costs associated with making a product must be making a product must
recognized at the end of the production process be recognized during the
B) Costs associated with making a product must be same period as revenue
recognized immediately as incurred generated from that prod-
C) Costs associated with making a product must be rec- uct
ognized 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
6. Jones Company has provided the following informa- $234,000
tion: (Operating Income = Op-
- Cash sales totaled $255,000 erating revenues - Operat-
- Credit sales totaled $479,000 ing expenses)
- 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?
, Accounting Crash Course
Study online at https://quizlet.com/_bky6kq
7. Which of the following statements is false? B) Revenue is not recog-
A) Collecting cash after delivery of a good or service nized at the time of deliv-
does not create revenue on the income statement on ery of goods and services if
the date of collection cash is received after deliv-
B) Revenue is not recognized at the time of delivery of ery of the goods and ser-
goods and services if cash is received after delivery of vices
the goods and services
C) A liability is created when cash is received prior to
delivery of the goods or services
D) Revenue is recognized at the time of delivery of the
goods or services regardless of if cash is received
8. Clayton Corp. has provided the following information 62%
- Gross profit was $620,000 (Gross Profit = Sales -
- COGS was $380,000 COGS, Gross Profit Per-
- Net in come was $400,000 centage = Gross profit /
What was Clayton's gross profit margin? Sales)
9. Clayton Corp. has provided the following information: $560,000
- Operating (excluding COGS) expenses were (Gross Profit = Net Sales -
$345,000; COGS)
- Operating income was $215,000;
- Net sales were $1,100,000;
- Interest expense was $71,000;
- Loss on sale of investments was $87,000;
- Income tax expense was $58,000.
What was Clayton's gross profit?
10. A customer purchased and received $5,000 of goods September 1st
on credit from Discount Paper Supply on September (Sales revenue should be
1. The customer received the bill on September 13 and recorded on the date of
mailed a $5,000 check on September 30. Discount Pa- sale)
Accounting
WITH DETAILED VERIFIEDCrash ANSWERS Course/ WSP ACCOUNTING CRASHCOURSE ACTUAL LATEST EXAM/
WALLSTREET PREP
Study online at https://quizlet.com/_bky6kq
1. The regulating body that oversees the development of C) FASB
accounting standards in the U.S. is:
A) SFAS
B) GAAP
C) FASB
D) IASB
2. Which of the following statements is true? A) GAAP requires that firms
A) GAAP requires that firms show recorded values for show recorded values for
acquired intangible assets such as patents and trade- acquired intangible assets
marks on their financial statements such as patents and trade-
B) GAAP requires that firms show recorded values for marks on their financial
intangible assets such as employee and customer loy- statements
alty
C) GAAP requires that financial statements accurate-
ly reflects the market value of internally-developed
trademarks such as the value of the Coca-Cola brand
name.
D) All of the above
3. Which of the following statements is true? C) Publicly traded US com-
A) Publicly traded US companies are required to file panies are required to file
four 10-Q's and one 10-K annually three 10-Q's and one 10-K
B) All US companies are required to file three 10-Q's annually
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.
4.
, Accounting Crash Course
Study online at https://quizlet.com/_bky6kq
The income statement is designed to measure: E) The profits of a firm over
A) The liquidity of a firm a period of time
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
5. The "matching principle" states that: C) Costs associated with
A) Costs associated with making a product must be making a product must
recognized at the end of the production process be recognized during the
B) Costs associated with making a product must be same period as revenue
recognized immediately as incurred generated from that prod-
C) Costs associated with making a product must be rec- uct
ognized 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
6. Jones Company has provided the following informa- $234,000
tion: (Operating Income = Op-
- Cash sales totaled $255,000 erating revenues - Operat-
- Credit sales totaled $479,000 ing expenses)
- 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?
, Accounting Crash Course
Study online at https://quizlet.com/_bky6kq
7. Which of the following statements is false? B) Revenue is not recog-
A) Collecting cash after delivery of a good or service nized at the time of deliv-
does not create revenue on the income statement on ery of goods and services if
the date of collection cash is received after deliv-
B) Revenue is not recognized at the time of delivery of ery of the goods and ser-
goods and services if cash is received after delivery of vices
the goods and services
C) A liability is created when cash is received prior to
delivery of the goods or services
D) Revenue is recognized at the time of delivery of the
goods or services regardless of if cash is received
8. Clayton Corp. has provided the following information 62%
- Gross profit was $620,000 (Gross Profit = Sales -
- COGS was $380,000 COGS, Gross Profit Per-
- Net in come was $400,000 centage = Gross profit /
What was Clayton's gross profit margin? Sales)
9. Clayton Corp. has provided the following information: $560,000
- Operating (excluding COGS) expenses were (Gross Profit = Net Sales -
$345,000; COGS)
- Operating income was $215,000;
- Net sales were $1,100,000;
- Interest expense was $71,000;
- Loss on sale of investments was $87,000;
- Income tax expense was $58,000.
What was Clayton's gross profit?
10. A customer purchased and received $5,000 of goods September 1st
on credit from Discount Paper Supply on September (Sales revenue should be
1. The customer received the bill on September 13 and recorded on the date of
mailed a $5,000 check on September 30. Discount Pa- sale)
