Intermediate Accounting 201 Ivy Tech Exam
INTERMEDIATE ACCOUNTING 201 IVY TECH EXAM NEWEST
2025/2026 ACTUAL EXAM COMPLETE 100 QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
On December 31, 2021, the end of Adie, Miles, & Auer Used Cars' first year of
operations, the accounts receivable was $107,200. The company estimates that
$2,400 of the year-end receivables will not be collected. Accounts receivable in
the 2021 balance sheet will be valued at:
A. $107,200.
B. $109,600.
C. $104,800.
D. $2,400.
C. $104,800
Accounts receivable = $107,200 − $2,400 = $104,800
In a classified balance sheet, supplies would be classified among:
A. Noncurrent assets.
B. Current liabilities.
C. Current assets.
D. Noncurrent liabilities.
C. Current assets.
Supplies are a current asset since they will most likely be consumed/used within
the next year or operating cycle, whichever is longer.
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, Intermediate Accounting 201 Ivy Tech Exam
A prepaid expense is an expense:
A. Incurred before the cash is paid.
B. Incurred and paid.
C. Paid but not yet incurred.
D. All of these answer choices are incorrect.
C. Paid but not yet incurred.
Prepaid expenses are expenses paid for in advance and initially recorded as an
asset.
A sale of merchandise on account would be recorded by:
A. Debiting a revenue.
B. Crediting an asset.
C. Crediting a liability.
D. Debiting an asset.
D. Debiting an asset.
Accounts receivable is an asset, so it is increased with a debit and sales is a
revenue, so it is increased with a credit.
The journal entry to record the borrowing of cash and the signing of a note
payable involves:
A. A debit to note payable and a credit to cash.
B. Debits to cash and interest expense and a credit to note payable.
C. A debit to cash and a credit to note payable.
D. All of these answer choices are incorrect.
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, Intermediate Accounting 201 Ivy Tech Exam
C. A debit to cash and a credit to note payable.
Cash is an asset, so it is increased with a debit and note payable is liability, so it
is increased with a credit.
The Wazoo Times Newspaper Company reported an $11,200 liability in its 2018
balance sheet for subscription revenue received in advance. During 2019, $62,000
was received from customers for subscriptions and the 2019 income statement
reported subscription revenue of $63,700. What is the liability amount for
deferred subscription revenue that will appear in the 2019 balance sheet?
A. $0
B. $11,200
C. $12,900
D. $9,500
D. $9,500
[$11,200 (beginning balance) + $62,000 (additional receipts) − $63,700
(subscription revenue recognized)]
The Esquire Clothing Company borrowed a sum of cash on October 1, 2018, and
signed a note payable. The annual interest rate was 12% and the company's year
2018 income statement reported interest expense of $1,260 related to this note.
What was the amount borrowed?
A. $22,000
B. $31,500
C. $10,500
D. $42,000
D. $42,000
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, Intermediate Accounting 201 Ivy Tech Exam
Amount borrowed × 12% × 3/12 = $1,260.
Amount borrowed × 0.03 = $1,260.
$1,260 ÷ 0.03 = $42,000.
A collection of storage areas, called accounts, used to keep track of increases and
decreases in financial position elements is:
A. a journal.
B. a ledger.
C. a financial statement.
D. a locker.
B. a ledger.
A ledger is a collection of storage areas, called accounts, used to keep track of
increases and decreases in financial position elements.
The reason we post journal entries is to
A. provide a chronological record of all economic events affecting the firm.
B. ensure that all accounts are up to date prior to preparing financial statements.
C. ensure that debits equal credits in the trial balance.
D. reflect the information in journal entries in ledger accounts.
C. ensure that debits equal credits in the trial balance.
Which of the following adjusting entries causes an increase in liabilities?
A. Accruing unrecorded interest expense.
B. Recording the amount of expired prepaid insurance.
C. Accruing unrecorded interest revenue.
D. Recording depreciation expense.
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INTERMEDIATE ACCOUNTING 201 IVY TECH EXAM NEWEST
2025/2026 ACTUAL EXAM COMPLETE 100 QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
On December 31, 2021, the end of Adie, Miles, & Auer Used Cars' first year of
operations, the accounts receivable was $107,200. The company estimates that
$2,400 of the year-end receivables will not be collected. Accounts receivable in
the 2021 balance sheet will be valued at:
A. $107,200.
B. $109,600.
C. $104,800.
D. $2,400.
C. $104,800
Accounts receivable = $107,200 − $2,400 = $104,800
In a classified balance sheet, supplies would be classified among:
A. Noncurrent assets.
B. Current liabilities.
C. Current assets.
D. Noncurrent liabilities.
C. Current assets.
Supplies are a current asset since they will most likely be consumed/used within
the next year or operating cycle, whichever is longer.
1|Page
, Intermediate Accounting 201 Ivy Tech Exam
A prepaid expense is an expense:
A. Incurred before the cash is paid.
B. Incurred and paid.
C. Paid but not yet incurred.
D. All of these answer choices are incorrect.
C. Paid but not yet incurred.
Prepaid expenses are expenses paid for in advance and initially recorded as an
asset.
A sale of merchandise on account would be recorded by:
A. Debiting a revenue.
B. Crediting an asset.
C. Crediting a liability.
D. Debiting an asset.
D. Debiting an asset.
Accounts receivable is an asset, so it is increased with a debit and sales is a
revenue, so it is increased with a credit.
The journal entry to record the borrowing of cash and the signing of a note
payable involves:
A. A debit to note payable and a credit to cash.
B. Debits to cash and interest expense and a credit to note payable.
C. A debit to cash and a credit to note payable.
D. All of these answer choices are incorrect.
2|Page
, Intermediate Accounting 201 Ivy Tech Exam
C. A debit to cash and a credit to note payable.
Cash is an asset, so it is increased with a debit and note payable is liability, so it
is increased with a credit.
The Wazoo Times Newspaper Company reported an $11,200 liability in its 2018
balance sheet for subscription revenue received in advance. During 2019, $62,000
was received from customers for subscriptions and the 2019 income statement
reported subscription revenue of $63,700. What is the liability amount for
deferred subscription revenue that will appear in the 2019 balance sheet?
A. $0
B. $11,200
C. $12,900
D. $9,500
D. $9,500
[$11,200 (beginning balance) + $62,000 (additional receipts) − $63,700
(subscription revenue recognized)]
The Esquire Clothing Company borrowed a sum of cash on October 1, 2018, and
signed a note payable. The annual interest rate was 12% and the company's year
2018 income statement reported interest expense of $1,260 related to this note.
What was the amount borrowed?
A. $22,000
B. $31,500
C. $10,500
D. $42,000
D. $42,000
3|Page
, Intermediate Accounting 201 Ivy Tech Exam
Amount borrowed × 12% × 3/12 = $1,260.
Amount borrowed × 0.03 = $1,260.
$1,260 ÷ 0.03 = $42,000.
A collection of storage areas, called accounts, used to keep track of increases and
decreases in financial position elements is:
A. a journal.
B. a ledger.
C. a financial statement.
D. a locker.
B. a ledger.
A ledger is a collection of storage areas, called accounts, used to keep track of
increases and decreases in financial position elements.
The reason we post journal entries is to
A. provide a chronological record of all economic events affecting the firm.
B. ensure that all accounts are up to date prior to preparing financial statements.
C. ensure that debits equal credits in the trial balance.
D. reflect the information in journal entries in ledger accounts.
C. ensure that debits equal credits in the trial balance.
Which of the following adjusting entries causes an increase in liabilities?
A. Accruing unrecorded interest expense.
B. Recording the amount of expired prepaid insurance.
C. Accruing unrecorded interest revenue.
D. Recording depreciation expense.
4|Page
