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Wall Street Prep Accounting Crash Course Exam
2026-2027(Version 1 & 2)Includes Accurate And
100%Verified Questions|Already Graded A+
A company that sells smartphones and other computer
devices has collected $500,000 in cash and an additional
$100,000 is due within the next 30 days for sales that it
has made. It has already shipped all the merchandise.
Which of the following show the correct journal entries for
these activities?
A) Debit cash for $500,000, Debit Accounts Receivable for
$100,000, Credit Retained Earnings for $500,000, Credit
Deferred Revenue for $100,000.
B) Credit cash for $500,000, Credit Accounts Receivable
for $100,000, Debit Retained Earnings for $600,000.
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C) Debit cash for $500,000, Debit Accounts Receivable for
$100,000, Credit Retained Earnings for $600,000.
D) Debit cash for $500,000, Debit Accounts Receivable for
$100,000, Credit Inventory for $600,000.
E) Credit cash for $500,000, Credit Accounts Receivable
for $100,000, Debit Inventory for $600,000. - ANSWER-C)
Debit cash for $500,000, Debit Accounts Receivable for
$100,000, Credit Retained Earnings for $600,000.
The "matching principle" states that:
A) Costs associated with making a product must be
recognized at the end of the production process
B) Costs associated with making a product must be
recognized immediately as incurred
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C) Costs associated with making a product must be
recognized 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 - ANSWER-C) Costs associated with making a
product must be recognized during the same period as
revenue generated from that product
Jones Company has provided the following information:
- Cash sales totaled $255,000
- Credit sales totaled $479,000
- Interest income was $7,700
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- 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? - ANSWER-
$234,000
(Operating Income = Operating revenues - Operating
expenses)
Which of the following statements is false?
A) Collecting cash after delivery of a good or service does
not create revenue on the income statement on the date of
collection
Wall Street Prep Accounting Crash Course Exam
2026-2027(Version 1 & 2)Includes Accurate And
100%Verified Questions|Already Graded A+
A company that sells smartphones and other computer
devices has collected $500,000 in cash and an additional
$100,000 is due within the next 30 days for sales that it
has made. It has already shipped all the merchandise.
Which of the following show the correct journal entries for
these activities?
A) Debit cash for $500,000, Debit Accounts Receivable for
$100,000, Credit Retained Earnings for $500,000, Credit
Deferred Revenue for $100,000.
B) Credit cash for $500,000, Credit Accounts Receivable
for $100,000, Debit Retained Earnings for $600,000.
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C) Debit cash for $500,000, Debit Accounts Receivable for
$100,000, Credit Retained Earnings for $600,000.
D) Debit cash for $500,000, Debit Accounts Receivable for
$100,000, Credit Inventory for $600,000.
E) Credit cash for $500,000, Credit Accounts Receivable
for $100,000, Debit Inventory for $600,000. - ANSWER-C)
Debit cash for $500,000, Debit Accounts Receivable for
$100,000, Credit Retained Earnings for $600,000.
The "matching principle" states that:
A) Costs associated with making a product must be
recognized at the end of the production process
B) Costs associated with making a product must be
recognized immediately as incurred
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C) Costs associated with making a product must be
recognized 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 - ANSWER-C) Costs associated with making a
product must be recognized during the same period as
revenue generated from that product
Jones Company has provided the following information:
- Cash sales totaled $255,000
- Credit sales totaled $479,000
- Interest income was $7,700
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- 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? - ANSWER-
$234,000
(Operating Income = Operating revenues - Operating
expenses)
Which of the following statements is false?
A) Collecting cash after delivery of a good or service does
not create revenue on the income statement on the date of
collection
