ACCT 200 COMPREHENSIVE EXAM 2026
QUESTIONS AND ANSWERS 100% CORRECT
◉ During August, WVU collected $6,000,000 in advance ticket sales for
football games to be played in September. The games were played in
September as scheduled. The $6,000,000 will be reported as ______.
Answer: Deferred Revenue on balance sheet August 31
◉ During September, WVU collected $8,000,000 in advance ticket sales
for basketball games to be played in January. The games were played in
January as scheduled. The $8,000,000 will be reported as ______.
Answer: Revenue on the Income Statement for the month ended January
31
◉ Which is violated if an advertising company increases its net income
in the period it collects the cash from its customers, which is often
months before the advertisement is completed and run? Answer:
Revenue Recognition Principle
◉ Which of the following VIOLATES the expense recognition
(matching) principle? Answer: Inventory is expensed when purchased
, ◉ Which of the following require a portion of the equipment's cost to be
reported on the income statement each accounting period the equipment
is used? Answer: Expense Recognition principle
◉ During the year, A Salt & Buttery, Inc., had revenue of $88,000 of
which $6,000 was collected from customers. It also had expenses of
$28,000 of which $3,000 was paid. The owners were paid $20,000 in
dividends. Net income for the year equals ______. Answer: 60,000
◉ When a business makes a sale on account, the asset created is a(n)
______? Answer: Accounts receivable
◉ If a company incorrectly records cash received from customers by
increasing Cash and Service Revenue for services that were previously
recorded as sales on account, how will this error affect the current
period? Answer: Net income will be too high
◉ In its first month of business, Eel Electronics sold $5,000 of goods to
customers of which $3,000 has been collected. Using accrual
accounting, Eel Electronics should report revenues of ______. Answer:
5,000
◉ In May, Rec Rooms, Inc., collected $8,000 owed by customers for
services performed in April. Show the effect of this collection on the
accounting equation. Answer: Assets - 8,000 Cash; (8,000) Accounts
ReceivableLiabilities - 0 No Effect
QUESTIONS AND ANSWERS 100% CORRECT
◉ During August, WVU collected $6,000,000 in advance ticket sales for
football games to be played in September. The games were played in
September as scheduled. The $6,000,000 will be reported as ______.
Answer: Deferred Revenue on balance sheet August 31
◉ During September, WVU collected $8,000,000 in advance ticket sales
for basketball games to be played in January. The games were played in
January as scheduled. The $8,000,000 will be reported as ______.
Answer: Revenue on the Income Statement for the month ended January
31
◉ Which is violated if an advertising company increases its net income
in the period it collects the cash from its customers, which is often
months before the advertisement is completed and run? Answer:
Revenue Recognition Principle
◉ Which of the following VIOLATES the expense recognition
(matching) principle? Answer: Inventory is expensed when purchased
, ◉ Which of the following require a portion of the equipment's cost to be
reported on the income statement each accounting period the equipment
is used? Answer: Expense Recognition principle
◉ During the year, A Salt & Buttery, Inc., had revenue of $88,000 of
which $6,000 was collected from customers. It also had expenses of
$28,000 of which $3,000 was paid. The owners were paid $20,000 in
dividends. Net income for the year equals ______. Answer: 60,000
◉ When a business makes a sale on account, the asset created is a(n)
______? Answer: Accounts receivable
◉ If a company incorrectly records cash received from customers by
increasing Cash and Service Revenue for services that were previously
recorded as sales on account, how will this error affect the current
period? Answer: Net income will be too high
◉ In its first month of business, Eel Electronics sold $5,000 of goods to
customers of which $3,000 has been collected. Using accrual
accounting, Eel Electronics should report revenues of ______. Answer:
5,000
◉ In May, Rec Rooms, Inc., collected $8,000 owed by customers for
services performed in April. Show the effect of this collection on the
accounting equation. Answer: Assets - 8,000 Cash; (8,000) Accounts
ReceivableLiabilities - 0 No Effect
