Accounting Crash Course Exam Solutions – Wall Street Prep 2026

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Accounting Crash Course Exam from
Wall Street Prep 2026




2026 2027 GRADED A+

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Section I — Accounting Fundamentals (1–15)
1. The primary purpose of financial accounting is to:
A) Maximize profits
B) Provide financial information to external users
C) Forecast economic conditions
D) Prepare tax returns
Answer: B

2. The accounting equation is:
A) Assets = Liabilities + Equity
B) Equity = Assets + Liabilities
C) Revenue = Assets + Liabilities
D) Liabilities = Assets – Equity
Answer: A

3. Which financial statement shows performance over a period of time?
A) Balance Sheet
B) Income Statement
C) Statement of Cash Flows
D) Both B and C
Answer: D

4. Revenue is recognized when:
A) Cash is received
B) Goods/services are delivered, and collection is reasonably assured
C) Inventory is purchased
D) Cash is paid
Answer: B

5. Expenses are matched with revenues under:
A) Cash basis accounting
B) Accrual basis accounting
C) Modified cash basis
D) Tax basis
Answer: B

6. Which account is increased with a credit?
A) Asset
B) Expense


2026 2027 GRADED A+