ACC 231 EXAM 2 2026 PRACTICE TEST
QUESTIONS AND DETAILED ACCOUNTING
BREAKDOWN FULL REVIEW
◉ operating cycle. Answer: the time it takes to take cash and come
back to cash within the operations of a company
◉ examples of current assets. Answer: supplies, cash, insurance,
rent, accounts receivable, short-term investments, and inventory
◉ long term investments. Answer: investments we expect to be held
for more than a year or operating cycle which ever is longer
◉ examples of long term investments. Answer: notes receivable,
investments in stock, investments in bonds, land not being used
◉ plant assets. Answer: (fixed assets or property, plant, and
equipment) tangible long-lived assets used to produce and/or sell
products and services
◉ examples of plant assets. Answer: buildings, land, equipment,
accumulated depreciation
, ◉ Current Liability. Answer: paid within one year or operating cycle
which ever is longer
◉ examples of current liabilities. Answer: accounts payable, wages
payable, unearned revenue, taxes payable
◉ Long-term liabilities. Answer: not due within a year or operating
cycle which ever is longer
◉ examples of long-term liabilities. Answer: notes payable,
mortgages payable, bonds payable, lease obligations
◉ New Accounts. Answer: -inventory (current asset)
-cost of goods sold (expense)
-sales (revenue)
-sales discounts (contra-revenue)
-sales returns and allowances (contra-revenue)
-delivery expense (expense)
◉ Inventory cost. Answer: all costs required to acquire and make
ready for sale
QUESTIONS AND DETAILED ACCOUNTING
BREAKDOWN FULL REVIEW
◉ operating cycle. Answer: the time it takes to take cash and come
back to cash within the operations of a company
◉ examples of current assets. Answer: supplies, cash, insurance,
rent, accounts receivable, short-term investments, and inventory
◉ long term investments. Answer: investments we expect to be held
for more than a year or operating cycle which ever is longer
◉ examples of long term investments. Answer: notes receivable,
investments in stock, investments in bonds, land not being used
◉ plant assets. Answer: (fixed assets or property, plant, and
equipment) tangible long-lived assets used to produce and/or sell
products and services
◉ examples of plant assets. Answer: buildings, land, equipment,
accumulated depreciation
, ◉ Current Liability. Answer: paid within one year or operating cycle
which ever is longer
◉ examples of current liabilities. Answer: accounts payable, wages
payable, unearned revenue, taxes payable
◉ Long-term liabilities. Answer: not due within a year or operating
cycle which ever is longer
◉ examples of long-term liabilities. Answer: notes payable,
mortgages payable, bonds payable, lease obligations
◉ New Accounts. Answer: -inventory (current asset)
-cost of goods sold (expense)
-sales (revenue)
-sales discounts (contra-revenue)
-sales returns and allowances (contra-revenue)
-delivery expense (expense)
◉ Inventory cost. Answer: all costs required to acquire and make
ready for sale
