ACCT 6100 Exam Questions with Correct Answers Latest Update 2025/2026
Revenue - Answers Is any increase in assets not caused by borrowing or additional investment
by owners. That is, if the cause of increase in assets is borrowing or contributed capital by
owners, no revenue is generated. Example of events that result in increase in assets and
revenue are: services provided, or merchandise sold to customers;interest earned on investment
or bank accounts; gain on disposal of company assets.
Operating Revenue - Answers This category of revenues include recurring revenues related to
the principal ongoing day-to-day business of the company such as sales of merchandise or
providing services.Examples are: Service Revenues; Sales Revenues; Sales Returns (contra
account for Sales Revenues);
and Sales Discount (contra account for Sales Revenues).
Other Revenues and Gaines - Answers This category of revenues include non-recurring revenues
or revenues that do not relate to the company's principal ongoing day-to-day business. Normally
they are caused by events that are unusual or infrequent but not both. Examples are: Interest
Revenue; Gain on
disposal of assets; and Dividends Revenue.
Extraordinary Revenues and Gains - Answers This category of revenues is caused by events that
are bothunusual and infrequent such as gain on sale of a product line or a division of company
to anothercompany. They are listed under Discontinued Operation or Extraordinary Items. (Gain
= Sale price -Book value or cost
Expense - Answers Expense is consumed resource or used-up asset to generate revenue. "Used
-up" means that no future benefit is left from the consumed asset/resource. For example, using
$100 cash (asset) to buy supplies (such as paper and ink) is not expense if the supplies are not
used-up. The unused supply has future benefit and is considered asset. When supplies are used
it becomes expense
Cost of Goods Sold - Answers This category of expense only exists in merchandising and
manufacturing companies. In merchandising companies, it refers to the cost of buying the
merchandise that has been sold. And cost includes purchase price, sales taxes paid on
purchase, shipping & handling costs paid, and any other cost incurred during the purchase and
bringing it to company and having it ready for sale. Please note that, any merchandise
purchased, but not sold yet is considered "asset" (Merchandise Inventory) not "expense" (Cost
of Goods Sold).
Operating Expenses - Answers This category of expense refers to Selling and Administrative
expenses that pertain to the operation of the principal ongoing day-to-day business of the
company
Revenue - Answers Is any increase in assets not caused by borrowing or additional investment
by owners. That is, if the cause of increase in assets is borrowing or contributed capital by
owners, no revenue is generated. Example of events that result in increase in assets and
revenue are: services provided, or merchandise sold to customers;interest earned on investment
or bank accounts; gain on disposal of company assets.
Operating Revenue - Answers This category of revenues include recurring revenues related to
the principal ongoing day-to-day business of the company such as sales of merchandise or
providing services.Examples are: Service Revenues; Sales Revenues; Sales Returns (contra
account for Sales Revenues);
and Sales Discount (contra account for Sales Revenues).
Other Revenues and Gaines - Answers This category of revenues include non-recurring revenues
or revenues that do not relate to the company's principal ongoing day-to-day business. Normally
they are caused by events that are unusual or infrequent but not both. Examples are: Interest
Revenue; Gain on
disposal of assets; and Dividends Revenue.
Extraordinary Revenues and Gains - Answers This category of revenues is caused by events that
are bothunusual and infrequent such as gain on sale of a product line or a division of company
to anothercompany. They are listed under Discontinued Operation or Extraordinary Items. (Gain
= Sale price -Book value or cost
Expense - Answers Expense is consumed resource or used-up asset to generate revenue. "Used
-up" means that no future benefit is left from the consumed asset/resource. For example, using
$100 cash (asset) to buy supplies (such as paper and ink) is not expense if the supplies are not
used-up. The unused supply has future benefit and is considered asset. When supplies are used
it becomes expense
Cost of Goods Sold - Answers This category of expense only exists in merchandising and
manufacturing companies. In merchandising companies, it refers to the cost of buying the
merchandise that has been sold. And cost includes purchase price, sales taxes paid on
purchase, shipping & handling costs paid, and any other cost incurred during the purchase and
bringing it to company and having it ready for sale. Please note that, any merchandise
purchased, but not sold yet is considered "asset" (Merchandise Inventory) not "expense" (Cost
of Goods Sold).
Operating Expenses - Answers This category of expense refers to Selling and Administrative
expenses that pertain to the operation of the principal ongoing day-to-day business of the
company
