Exit LATEST 2026/2027 ACTUAL EXAM
QUESTIONS WITH CORRECT
ANSWERS 100% VERIFIED GRADED
A+
WhichmorganizationmismresponsiblemformoverseeingmthemactivitiesmofmFASBm-
mCORRECTmANSWERmFAF
Themincomemstatementm(preparedmundermaccrualmaccounting)mofmDolanmCorporationmform2020min
cludedm$141,000mforminterestmRevenue.mThemfollowingmarembalancesmfrommDolanmCorporation'sm
balancemsheets:
Decemberm31,m2020
Decemberm31,m2019
InterestmReceivable$18,200$15,000
Themcashmreceivedmforminterestmduringm2020mwasm-mCORRECTmANSWERm?
Formeachmofmthemfollowingmstatements,mselectmthemchoice(s)mwhichmmakesmeachmstatementmTrue:
I.mDebitingmanmaccountmhavingmamnormalmcreditmbalancemwillmcausemthatmaccountmtom(decrease,mi
ncrease)
II.m"Posting"mismthemprocessmofmtransferringmdatamfrommthem(journal;mledger)mtomthem(journal;mled
ger)m-mCORRECTmANSWERm?
CabonimandmAssociates,mampublicmaccountingmfirm,mpreparedmthemAprilmfinancialmstatementsmform
amclientmonmMaym20mandmsentmthemclientmam$1,000minvoicemonmthemsamemday.mThemclientmreceived
mthem$1,000minvoicemonmMaym27.mThemclientmmailedmamcheckmform$1,000mtomCabonimandmAssociat
esmonmJunem3.mThem$1,000mcheckmwasmreceivedmbymCabonimandmAssociatesmonmJunem7.mIfmCabonim
andmAssociatesmusesmthemaccrualmbasismofmaccounting,monmwhichmdatemshouldmthem$1,000mbemrec
ordedmasmrevenuembymCabonimandmAssociates?m-mCORRECTmANSWERm?
, Themadjustingmentrymformsuppliesmusedmduringmthemperiodmismnotmmade.mAsmamresult:m-
mCORRECTmANSWERmAssetsmandmstockholder'smequitymwillmbemoverstated
SmithmCo.mpreparedmanmagingmofmitsmaccountsmreceivablematm12/31/2024mresultingminmestimatedm
uncollectiblemaccountsmreceivablemofm$75,000.mAdditionminformationmismavailablemasmfollows:
AccountsmReceivablembalance,m12/31/2024m$975,000
Allowancemformdoubtfulmaccountsmbalancem1/1/2024m$m58,000
Accountsmwritten-offmasmuncollectiblemduringm2024m$m14,000
ThemamountmofmBadmDebtsmExpensemtombemreportedmform2024mism-mCORRECTmANSWERm?
Undermwhichmscenariomwillm"OperatingmIncome"malwaysmequalm$0:m-mCORRECTmANSWERm?
"Creditors'mclaims"mtomassetsmaremrepresentedmbymwhichmfinancialmstatementmelement:m-
mCORRECTmANSWERmLiabilites
OnmOctoberm31,mamfiremdestroyedmChenmInc.'smentiremretailminventory.mTheminventorymonmhandmas
mofmJanuarym1mtotaledm$2,720,000.mFrommJanuarym1mthroughmthemtimemofmthemfire,mthemcompanym
madempurchasesmofm$660,000mandmhadmsalesmofm$1,440,000.mAssumingmthemratemofmgrossmprofitm
tomsellingmpricemism40%,mwhatmismthemapproximatemvaluemofmtheminventorymthatmwasmdestroyed?m-
mCORRECTmANSWERm=(2,720,000+660,000)-(1,440,000*.4)=2,804,000
RossmCo.mhasmthemfollowingmdatamrelatedmtomanmitemmofminventory:
Inventory,mMarchm1m400munitsm@m$2.10
PurchasemMarchm7m1,400munitsm@m$2.20
PurchasemMarchm16m280munitsm@m$2.25
InventorymMarchm31m520munits
QUESTIONS WITH CORRECT
ANSWERS 100% VERIFIED GRADED
A+
WhichmorganizationmismresponsiblemformoverseeingmthemactivitiesmofmFASBm-
mCORRECTmANSWERmFAF
Themincomemstatementm(preparedmundermaccrualmaccounting)mofmDolanmCorporationmform2020min
cludedm$141,000mforminterestmRevenue.mThemfollowingmarembalancesmfrommDolanmCorporation'sm
balancemsheets:
Decemberm31,m2020
Decemberm31,m2019
InterestmReceivable$18,200$15,000
Themcashmreceivedmforminterestmduringm2020mwasm-mCORRECTmANSWERm?
Formeachmofmthemfollowingmstatements,mselectmthemchoice(s)mwhichmmakesmeachmstatementmTrue:
I.mDebitingmanmaccountmhavingmamnormalmcreditmbalancemwillmcausemthatmaccountmtom(decrease,mi
ncrease)
II.m"Posting"mismthemprocessmofmtransferringmdatamfrommthem(journal;mledger)mtomthem(journal;mled
ger)m-mCORRECTmANSWERm?
CabonimandmAssociates,mampublicmaccountingmfirm,mpreparedmthemAprilmfinancialmstatementsmform
amclientmonmMaym20mandmsentmthemclientmam$1,000minvoicemonmthemsamemday.mThemclientmreceived
mthem$1,000minvoicemonmMaym27.mThemclientmmailedmamcheckmform$1,000mtomCabonimandmAssociat
esmonmJunem3.mThem$1,000mcheckmwasmreceivedmbymCabonimandmAssociatesmonmJunem7.mIfmCabonim
andmAssociatesmusesmthemaccrualmbasismofmaccounting,monmwhichmdatemshouldmthem$1,000mbemrec
ordedmasmrevenuembymCabonimandmAssociates?m-mCORRECTmANSWERm?
, Themadjustingmentrymformsuppliesmusedmduringmthemperiodmismnotmmade.mAsmamresult:m-
mCORRECTmANSWERmAssetsmandmstockholder'smequitymwillmbemoverstated
SmithmCo.mpreparedmanmagingmofmitsmaccountsmreceivablematm12/31/2024mresultingminmestimatedm
uncollectiblemaccountsmreceivablemofm$75,000.mAdditionminformationmismavailablemasmfollows:
AccountsmReceivablembalance,m12/31/2024m$975,000
Allowancemformdoubtfulmaccountsmbalancem1/1/2024m$m58,000
Accountsmwritten-offmasmuncollectiblemduringm2024m$m14,000
ThemamountmofmBadmDebtsmExpensemtombemreportedmform2024mism-mCORRECTmANSWERm?
Undermwhichmscenariomwillm"OperatingmIncome"malwaysmequalm$0:m-mCORRECTmANSWERm?
"Creditors'mclaims"mtomassetsmaremrepresentedmbymwhichmfinancialmstatementmelement:m-
mCORRECTmANSWERmLiabilites
OnmOctoberm31,mamfiremdestroyedmChenmInc.'smentiremretailminventory.mTheminventorymonmhandmas
mofmJanuarym1mtotaledm$2,720,000.mFrommJanuarym1mthroughmthemtimemofmthemfire,mthemcompanym
madempurchasesmofm$660,000mandmhadmsalesmofm$1,440,000.mAssumingmthemratemofmgrossmprofitm
tomsellingmpricemism40%,mwhatmismthemapproximatemvaluemofmtheminventorymthatmwasmdestroyed?m-
mCORRECTmANSWERm=(2,720,000+660,000)-(1,440,000*.4)=2,804,000
RossmCo.mhasmthemfollowingmdatamrelatedmtomanmitemmofminventory:
Inventory,mMarchm1m400munitsm@m$2.10
PurchasemMarchm7m1,400munitsm@m$2.20
PurchasemMarchm16m280munitsm@m$2.25
InventorymMarchm31m520munits
