ACG ACTUAL EXAM PAPER 2026 QUESTIONS
WITH SOLUTIONS GRADED A+
◉ A(n) ____1_____ ____2_______ is the legal right to receive cash
from a credit sale and represents an asset of the company. Answer:
Blank 1: account, trade, or accounts
Blank 2: receivable, recievable, or receivables
◉ Select all that apply
A trade discount is a reduction from the list price, which is used to:
(Select all that apply.)
Multiple select question.
change prices without publishing a new catalog
reduce the sale price for interest received
give quantity discounts to customers
disguise real prices from competitors
encourage customers to pay quickly Answer: change prices without
publishing a new catalog
give quantity discounts to customers
disguise real prices from competitors
, ◉ When a customer returns a product for a refund, in which account is
the entry recorded?
Multiple choice question.
purchase return
sales discount
purchase discount
sales return Answer: sales return
◉ Companies extend credit to customers and sell goods on account
because
Multiple choice question.
it increases inventory.
it reduces accounts receivable.
it increases sales. Answer: it increases sales.
◉ The formula to compute the receivables turnover ratio is net credit
sales divided by
Multiple choice question.
average accounts payable.
the receivable turnover ratio.
average accounts receivable.
average total assets. Answer: average accounts receivable.
WITH SOLUTIONS GRADED A+
◉ A(n) ____1_____ ____2_______ is the legal right to receive cash
from a credit sale and represents an asset of the company. Answer:
Blank 1: account, trade, or accounts
Blank 2: receivable, recievable, or receivables
◉ Select all that apply
A trade discount is a reduction from the list price, which is used to:
(Select all that apply.)
Multiple select question.
change prices without publishing a new catalog
reduce the sale price for interest received
give quantity discounts to customers
disguise real prices from competitors
encourage customers to pay quickly Answer: change prices without
publishing a new catalog
give quantity discounts to customers
disguise real prices from competitors
, ◉ When a customer returns a product for a refund, in which account is
the entry recorded?
Multiple choice question.
purchase return
sales discount
purchase discount
sales return Answer: sales return
◉ Companies extend credit to customers and sell goods on account
because
Multiple choice question.
it increases inventory.
it reduces accounts receivable.
it increases sales. Answer: it increases sales.
◉ The formula to compute the receivables turnover ratio is net credit
sales divided by
Multiple choice question.
average accounts payable.
the receivable turnover ratio.
average accounts receivable.
average total assets. Answer: average accounts receivable.
