ACG 2021 EXAM 1 PATTERSON
CERTIFICATION EVALUATION 2026 FULL
QUESTIONS AND CORRECT ANSWERS
COMPREHENSIVE TEST BANK REVIEW
GRADED A+
⩥ A company began the year with retained earnings of $460,000. During
the year, the company did the following:
Issued common stock, $840,000
Incurred expenses, $2,000,000
Declared and paid dividends, $50,000
The company's ending retained earnings is $760,000. What was the
company's revenue for the year?
Ending retained earnings - Beginning retained earnings + Expenses +
Dividends = Revenue. Answer: $2,350,000
⩥ Which of the following describes that sequence in which financial
statements are prepared? Answer: The statement of stockholders' equity
is prepared before the balance sheet.
,⩥ During the current year, a company's total assets decreased by
$15,000 and total stockholders' equity increased by $5,000. How much
did its total liabilities increase or decrease during the current year?
Answer: $20,000 decrease
⩥ The following information is provided for a certain company (in $
millions):
Net income for the current year is $390
Net income for the prior year was $350
Net sales for the current year is $4,100
Net sales for the prior year were $3,800
Total assets as of the end of the current year was $4,000
Total assets as of the end of the prior year was $3,000
What is the company's return on assets for the current year? Answer:
11.1%
⩥ A debit is not the normal balance for which of the accounts listed
below? Answer: Service Revenue
⩥ A transaction increased a company's assets by $5,000 and increased its
stockholders' equity by $5,000. This transaction could have been a(n)
Answer: investment of cash into the business by the stockholders.
, ⩥ At the start of the month, a company reported a $34,000 debit balance
in its cash account. During the month, the company debited cash for
$30,000 and credits cash for $42,000. At the end of the month, the cash
account has a .........
The Beginning Cash Balance + Cash Receipts occurring during the
period - Cash Payments occurring during the period = Ending Cash
Balance Answer: $22,000 debit balance
⩥ Prior to recording its closing entries, a company has the following
accounts and account balances at the end of its first year:
Accounts payable: $4,000
Cash: $22,000
Common stock: Not given
Dividends: $4,000
Expenses: $17,000
Notes payable: $3,000
Prepaid insurance: $5,000
Revenues: $28,000
What is the balance of its common stock account at the end of the first
year?
CERTIFICATION EVALUATION 2026 FULL
QUESTIONS AND CORRECT ANSWERS
COMPREHENSIVE TEST BANK REVIEW
GRADED A+
⩥ A company began the year with retained earnings of $460,000. During
the year, the company did the following:
Issued common stock, $840,000
Incurred expenses, $2,000,000
Declared and paid dividends, $50,000
The company's ending retained earnings is $760,000. What was the
company's revenue for the year?
Ending retained earnings - Beginning retained earnings + Expenses +
Dividends = Revenue. Answer: $2,350,000
⩥ Which of the following describes that sequence in which financial
statements are prepared? Answer: The statement of stockholders' equity
is prepared before the balance sheet.
,⩥ During the current year, a company's total assets decreased by
$15,000 and total stockholders' equity increased by $5,000. How much
did its total liabilities increase or decrease during the current year?
Answer: $20,000 decrease
⩥ The following information is provided for a certain company (in $
millions):
Net income for the current year is $390
Net income for the prior year was $350
Net sales for the current year is $4,100
Net sales for the prior year were $3,800
Total assets as of the end of the current year was $4,000
Total assets as of the end of the prior year was $3,000
What is the company's return on assets for the current year? Answer:
11.1%
⩥ A debit is not the normal balance for which of the accounts listed
below? Answer: Service Revenue
⩥ A transaction increased a company's assets by $5,000 and increased its
stockholders' equity by $5,000. This transaction could have been a(n)
Answer: investment of cash into the business by the stockholders.
, ⩥ At the start of the month, a company reported a $34,000 debit balance
in its cash account. During the month, the company debited cash for
$30,000 and credits cash for $42,000. At the end of the month, the cash
account has a .........
The Beginning Cash Balance + Cash Receipts occurring during the
period - Cash Payments occurring during the period = Ending Cash
Balance Answer: $22,000 debit balance
⩥ Prior to recording its closing entries, a company has the following
accounts and account balances at the end of its first year:
Accounts payable: $4,000
Cash: $22,000
Common stock: Not given
Dividends: $4,000
Expenses: $17,000
Notes payable: $3,000
Prepaid insurance: $5,000
Revenues: $28,000
What is the balance of its common stock account at the end of the first
year?
