ACC 311 Final Practice Exam PREP
ACC 311 FINAL PRACTICE EXAM PREP LATEST 2025/2026 ACTUAL
EXAM TEST BANK COMPLETE 150 QUESTIONS AND CORRECT ANSWERS
GRADED A+ GUARANTEED PASS- ACE YOUR EXAM
Expensing the cost of a wastebasket with an estimated useful life of 10 years when
purchased is an example of the application of the
A. consistency characteristic
B. historical cost principle
C. expense recognition principle
D. materiality ingredient
materiality ingredients
An accrued revenue can best be described as an amount
A. not collected and not currently matched with expenses
B. collected and currently matched with expenses
C. collected and not currently matched with expenses
D. not collected and currently matched with expenses
not collected and currently matched with expenses
Olsen Company paid or collected during 2025 the following items:
The interest revenue reported on the income statement for 2025 was
A. 56,600
B. 68,200
C. 83,000
D. 71,400
71,400
Hackey Company's account balances at December 31, 2025 for accounts
receivable and the related Allowance for Doubtful Accounts are 1,070,000 debit
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, ACC 311 Final Practice Exam PREP
and 1,500 credit, respectively. Net credit sales during 2025 were 5,340,000.
Hackey's sales manager and controller agree that 5% of the Accounts receivable
will ultimately be uncollectible. The adjusting entry at December 31, 2025 to
record bad debts expense would include a credit to the allowance account for
A. 267,000
B. 53,500
C. 52,000
D. 55,000
52,000
If a company prepays an expense
A. it debits an asset account to show the service or benefit it will receive in the
future
B. it credits an asset account and debits an expense account
C. it debits an expense account to match the expense against revenues recognized
D. it credits a liability account to show the obligation to pay for the service in the
future
it debits an asset account to show the service or benefit it will receive in the
future
Garcia Corporation received cash of 60,000 on August 1, 2025 for one year's rent
in advance and recorded the transaction with a credit to rent revenue. The
December 31, 2025 adjusting entry is
A. debit rent revenue and credit unearned rent revenue 35,000
B. debit unearned rent revenue and credit rent revenue 25,000
C. debit rent revenue and credit unearned rent revenue 25,000
D. debit cash and credit unearned rent revenue 35,000
debit rent revenue and credit unearned rent revenue, 35,000
If ending accounts receivable exceeds the beginning accounts receivable
A. cash collections during the period exceed the amount of revenue recognized
B. no cash was collected during the period
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, ACC 311 Final Practice Exam PREP
C. cash collections during the year are less than the amount of revenue recognized
D. net income for the period is less that the amount of cash-basis income
cash collections during the year are less than the amount of revenue recognized
In 2025, Dollar Time Corporation earned sales revenue of 1,330,000 with related
cost of goods sold of 720,000. The company incurred administrative expenses of
310,000 and had other revenues and gains of 22,000. Income tax expense was
31,000. Based on this information, the company will report gross profit for the
year of
A. 632,000
B. 291,000
C. 322,000
D. 610,000
610,000
An adjusted trail balance
A. is prepared after the financial statements are completed
B. is required financial statement under GAAP
C. proves that equality of the debit balance and credit balances of ledger accounts
after all adjustments have been made
D. cannot be used to prepare financial statements
Proves the equality of the debit balances and credit balances of the ledger
accoutns after all the adjustments have been made
Stockholders' equity is no affect by all
A. cash receipts
B. expenses
C. revenues
D. dividends
Cash receipts
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, ACC 311 Final Practice Exam PREP
On September 1, 2025, Lowe Co. issues a note payable to National Bank in the
amount of 1,500,000 bearing interest at 9% and payable in three equal annual
principal payments of 500,000. On this date, the bank's prime rate was 8%. The
first payment for interest and principal was made on September 1, 2026. At
December 31, 2026, Lowe should record accrued interest of
A. 40,000
B. 25,000
C. 30,000
D. 45,000
30,000
The following is available for Ace Company for 2025:
COGS for 2025 was
A. 1,620,000
B. 1,420,000
C. 1,500,000
D. 1,700,000
1,700,000
Earnings per share are reported separately for
A. net income and pretax income
B. discontinued operations items and prior period adjustments
C. income from continuing operation
D. net income and gross margin
income from continuing operations
Which of the following is an example of managing earnings upward
A. writing off obsolete inventory
B. decreasing estimated salvage value of equipment
C. underestimating warranty claims
D. accruing a contingent liability for an ongoing lawsuit
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ACC 311 FINAL PRACTICE EXAM PREP LATEST 2025/2026 ACTUAL
EXAM TEST BANK COMPLETE 150 QUESTIONS AND CORRECT ANSWERS
GRADED A+ GUARANTEED PASS- ACE YOUR EXAM
Expensing the cost of a wastebasket with an estimated useful life of 10 years when
purchased is an example of the application of the
A. consistency characteristic
B. historical cost principle
C. expense recognition principle
D. materiality ingredient
materiality ingredients
An accrued revenue can best be described as an amount
A. not collected and not currently matched with expenses
B. collected and currently matched with expenses
C. collected and not currently matched with expenses
D. not collected and currently matched with expenses
not collected and currently matched with expenses
Olsen Company paid or collected during 2025 the following items:
The interest revenue reported on the income statement for 2025 was
A. 56,600
B. 68,200
C. 83,000
D. 71,400
71,400
Hackey Company's account balances at December 31, 2025 for accounts
receivable and the related Allowance for Doubtful Accounts are 1,070,000 debit
1|Page
, ACC 311 Final Practice Exam PREP
and 1,500 credit, respectively. Net credit sales during 2025 were 5,340,000.
Hackey's sales manager and controller agree that 5% of the Accounts receivable
will ultimately be uncollectible. The adjusting entry at December 31, 2025 to
record bad debts expense would include a credit to the allowance account for
A. 267,000
B. 53,500
C. 52,000
D. 55,000
52,000
If a company prepays an expense
A. it debits an asset account to show the service or benefit it will receive in the
future
B. it credits an asset account and debits an expense account
C. it debits an expense account to match the expense against revenues recognized
D. it credits a liability account to show the obligation to pay for the service in the
future
it debits an asset account to show the service or benefit it will receive in the
future
Garcia Corporation received cash of 60,000 on August 1, 2025 for one year's rent
in advance and recorded the transaction with a credit to rent revenue. The
December 31, 2025 adjusting entry is
A. debit rent revenue and credit unearned rent revenue 35,000
B. debit unearned rent revenue and credit rent revenue 25,000
C. debit rent revenue and credit unearned rent revenue 25,000
D. debit cash and credit unearned rent revenue 35,000
debit rent revenue and credit unearned rent revenue, 35,000
If ending accounts receivable exceeds the beginning accounts receivable
A. cash collections during the period exceed the amount of revenue recognized
B. no cash was collected during the period
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, ACC 311 Final Practice Exam PREP
C. cash collections during the year are less than the amount of revenue recognized
D. net income for the period is less that the amount of cash-basis income
cash collections during the year are less than the amount of revenue recognized
In 2025, Dollar Time Corporation earned sales revenue of 1,330,000 with related
cost of goods sold of 720,000. The company incurred administrative expenses of
310,000 and had other revenues and gains of 22,000. Income tax expense was
31,000. Based on this information, the company will report gross profit for the
year of
A. 632,000
B. 291,000
C. 322,000
D. 610,000
610,000
An adjusted trail balance
A. is prepared after the financial statements are completed
B. is required financial statement under GAAP
C. proves that equality of the debit balance and credit balances of ledger accounts
after all adjustments have been made
D. cannot be used to prepare financial statements
Proves the equality of the debit balances and credit balances of the ledger
accoutns after all the adjustments have been made
Stockholders' equity is no affect by all
A. cash receipts
B. expenses
C. revenues
D. dividends
Cash receipts
3|Page
, ACC 311 Final Practice Exam PREP
On September 1, 2025, Lowe Co. issues a note payable to National Bank in the
amount of 1,500,000 bearing interest at 9% and payable in three equal annual
principal payments of 500,000. On this date, the bank's prime rate was 8%. The
first payment for interest and principal was made on September 1, 2026. At
December 31, 2026, Lowe should record accrued interest of
A. 40,000
B. 25,000
C. 30,000
D. 45,000
30,000
The following is available for Ace Company for 2025:
COGS for 2025 was
A. 1,620,000
B. 1,420,000
C. 1,500,000
D. 1,700,000
1,700,000
Earnings per share are reported separately for
A. net income and pretax income
B. discontinued operations items and prior period adjustments
C. income from continuing operation
D. net income and gross margin
income from continuing operations
Which of the following is an example of managing earnings upward
A. writing off obsolete inventory
B. decreasing estimated salvage value of equipment
C. underestimating warranty claims
D. accruing a contingent liability for an ongoing lawsuit
4|Page
