ACG EXAM SCRIPT 2026 FULL QUESTIONS
AND CORRECT ANSWERS ALREADY PASSED
◉ If liabilities total $150,000 and owners' equity totals $50,000, the
assets must total. Answer: $200,000 because assets = liabilities + owners
equity
◉ Compute net income: Sales revenue $10,000, Wage expense $4,000,
Accounts payable $1,000 and Utilities expense $2,000. Answer: $10,000
-$4,000
-$2,000
= $4,000
◉ Compute total assets: Cash $10,000, Accounts receivable $3,000,
Accounts payable $4,000, and Equipment $20,000. Answer: $10,000 +
$3,000 + $20,000 = $33,000
◉ Which is the logical order in which to construct the financial
statements?. Answer: Income statement, statement of retained earnings,
balance sheet
,◉ The income statement shows information for a point in time such as
the end of the business day on December 31, 2015. Answer: false
◉ The balance sheet shows information for an entire year such as the
year ending December 31, 2015. Answer: false
◉ Sales less what equals Gross Margin or Gross Profit. Answer: Cost or
goods sold
◉ Given the following account balances, prepare an income statement.
Show Gross Margin, Income Before Taxes and Net Income.
General and Administrative Expenses $20,000
Sales $120,000
Taxes $15,000
Marketing Expense $5,000
Cost of Goods Sold $50,000. Answer: Sales $120,000
COGS ($50,000)
Gross Margin 70,000
Operating Expenses
G&A exp. 20,000
marketing exp. 5,000
total O.E. (25,000)
, income before taxes $45,000
tax expense (15,000)
net income 30,000
◉ Assets will always equal liabilities plus owners' equity. Answer: true
◉ A company sells furniture to a customer for $10,000 in September.
The customer is going to pay for the furniture in October. In which
month should the company record sales?. Answer: September
◉ If beginning stockholders' equity = $50,000 and the following
transactions occur during the fiscal year, what is ending stockholders'
equity
•Net income was $10,000
•Dividends declared were $1,000
•Accounts receivable collected were $4,000
•Common stock was issued for a total of $12,000
AND CORRECT ANSWERS ALREADY PASSED
◉ If liabilities total $150,000 and owners' equity totals $50,000, the
assets must total. Answer: $200,000 because assets = liabilities + owners
equity
◉ Compute net income: Sales revenue $10,000, Wage expense $4,000,
Accounts payable $1,000 and Utilities expense $2,000. Answer: $10,000
-$4,000
-$2,000
= $4,000
◉ Compute total assets: Cash $10,000, Accounts receivable $3,000,
Accounts payable $4,000, and Equipment $20,000. Answer: $10,000 +
$3,000 + $20,000 = $33,000
◉ Which is the logical order in which to construct the financial
statements?. Answer: Income statement, statement of retained earnings,
balance sheet
,◉ The income statement shows information for a point in time such as
the end of the business day on December 31, 2015. Answer: false
◉ The balance sheet shows information for an entire year such as the
year ending December 31, 2015. Answer: false
◉ Sales less what equals Gross Margin or Gross Profit. Answer: Cost or
goods sold
◉ Given the following account balances, prepare an income statement.
Show Gross Margin, Income Before Taxes and Net Income.
General and Administrative Expenses $20,000
Sales $120,000
Taxes $15,000
Marketing Expense $5,000
Cost of Goods Sold $50,000. Answer: Sales $120,000
COGS ($50,000)
Gross Margin 70,000
Operating Expenses
G&A exp. 20,000
marketing exp. 5,000
total O.E. (25,000)
, income before taxes $45,000
tax expense (15,000)
net income 30,000
◉ Assets will always equal liabilities plus owners' equity. Answer: true
◉ A company sells furniture to a customer for $10,000 in September.
The customer is going to pay for the furniture in October. In which
month should the company record sales?. Answer: September
◉ If beginning stockholders' equity = $50,000 and the following
transactions occur during the fiscal year, what is ending stockholders'
equity
•Net income was $10,000
•Dividends declared were $1,000
•Accounts receivable collected were $4,000
•Common stock was issued for a total of $12,000
