WALL STREET PREP PREMIUM BOARD
EVALUATION SCRIPT 2026 QUESTIONS
WITH SOLUTIONS GRADED A+
⩥ Impact of inventory write down on B/S. Answer: debit > equity >
retained earnings
Credit > asset > inventory
⩥ PP&E. Answer: Represents land, buildings, and machinery used to
manufacture the company's services and products plus all costs
necessary to prepare those fixed assets for their service (transportation,
installation, other)
⩥ PP&E cycles out of the B/S and into the I/S as _________(either in
COGS, SG&A or elsewhere). Answer: depreciation
⩥ Net purchases of PP&E are called _______. Answer: capital
expenditures
⩥ Impact of PP&E on B/S: at purchase. Answer: Debit > asset > PP&E
Credit > asset > cash
, ⩥ Impact of PP&E on B/S: after one year. Answer: Debit > equity >
retained earnings (depreciation)
Credit > Asset > PP&E (depreciation)
⩥ Net PP&E =. Answer: Gross PP&E - accumulated depreciation
⩥ Accumulated depreciation is a _________. Answer: contra account
⩥ Increases in a contra account ________associated asset amount.
Answer: reduce
⩥ PP&E is reported ____________. Answer: net of accumulated
depreciation
⩥ PP&E whose value declines needs to be written down to market
value, and ....... Answer: ......The loss needs to be immediately
recognized on the balance sheet
⩥ If a company chooses to sell some of their PP&E, the associated gross
PP&E balance (and accumulated depreciation) is removed from the
balance sheet offset by ........ Answer: The cash received and any
gain/loss on sale on the income statement
EVALUATION SCRIPT 2026 QUESTIONS
WITH SOLUTIONS GRADED A+
⩥ Impact of inventory write down on B/S. Answer: debit > equity >
retained earnings
Credit > asset > inventory
⩥ PP&E. Answer: Represents land, buildings, and machinery used to
manufacture the company's services and products plus all costs
necessary to prepare those fixed assets for their service (transportation,
installation, other)
⩥ PP&E cycles out of the B/S and into the I/S as _________(either in
COGS, SG&A or elsewhere). Answer: depreciation
⩥ Net purchases of PP&E are called _______. Answer: capital
expenditures
⩥ Impact of PP&E on B/S: at purchase. Answer: Debit > asset > PP&E
Credit > asset > cash
, ⩥ Impact of PP&E on B/S: after one year. Answer: Debit > equity >
retained earnings (depreciation)
Credit > Asset > PP&E (depreciation)
⩥ Net PP&E =. Answer: Gross PP&E - accumulated depreciation
⩥ Accumulated depreciation is a _________. Answer: contra account
⩥ Increases in a contra account ________associated asset amount.
Answer: reduce
⩥ PP&E is reported ____________. Answer: net of accumulated
depreciation
⩥ PP&E whose value declines needs to be written down to market
value, and ....... Answer: ......The loss needs to be immediately
recognized on the balance sheet
⩥ If a company chooses to sell some of their PP&E, the associated gross
PP&E balance (and accumulated depreciation) is removed from the
balance sheet offset by ........ Answer: The cash received and any
gain/loss on sale on the income statement
