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ACCT 301 INTERMEDIATE ACCOUNTING
A+ GRADED EXAM MATERIAL 2026 2027
VERIFIED ANSWERS ACTUAL UPDATED
PRACTICE QUESTIONS HIGH YIELD
STUDY GUIDE INTERMEDIATE
ACCOUNTING EXAM PREPARATION
GRADED A+ SUCCESS REVIEW BRAND
NEW VERSION
The method of inventory usually provides a better match of expenses with
revenues a-LIFO b-FIFO a-Weighted Average d- all of the above -
CORRECT ANSWER=LIFO
A company's market value is generally less than its book value
TRUE
FALSE - CORRECT ANSWER=false
what is the effect of the adjusting journal entry to write down inventory to its net
realizable value? a-Decrease net income. b-Decrease total assets.
c-Decrease total assets and net income. d-Increase retained earnings. -
CORRECT ANSWER=Decrease total assets and net income.
when a seller offers a right of return, which is true:
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a-sales are net of estimated returns b-sales
are gross returns, returns are expenses c-sales
are net of actual returns
d-sales are gross of returns, returns are ignored - CORRECT
ANSWER=sales are net of estimated returns
which financial statement shows information for a point in time ONLY?
a-balance sheet b-income statement c- statement of cash flows
d-statement of shareholders equity - CORRECT
ANSWER=balance sheet
A company receiving a donated will record a(n):
a- increase in liabilities b-increase in revenue c-decrease in
assets d-decrease in liabilities - CORRECT
ANSWER=an increase in revenue
Collections of accounts receivable that previously have been written off result in
an increase in cash and an increase in:
a- accounts receivable b- bad debt expense c-allowance for
uncollectible accounts d- retained earnings - CORRECT
ANSWER=Allowance for uncollectible accounts
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Jo paid $840 to Tot co. for a 6 month course that started on June 1. As of August 1,
the financial records would show:
a-$560 Revenue; $280 Accounts Receivable b-
$560 revenue; $280 Deferred Revenue c-$280
Revenue; $560 Accounts Receivable d-$280
Revenue; $280 Deferred Revenue -
CORRECT ANSWER=280 Revenue;
$280 Deferred Revenue
when FASB issues new accounting standards, they call them:
a-Financial Technical Bulletins b-Financial Accounting Standards c-
Accounting Standards Updates d-Accounting Research Bulletins -
CORRECT ANSWER=Accounting Standards Updates
Which of the following is recorded by a credit to accounts receivable?
a-write off of bad debts b-sale of inventory on account c-estimating
the annual allowance for uncollectible accounts d-estimating annual
sales returns - CORRECT ANSWER=write off of bad debts
operating cash outflows would include:
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a-Purchases of inventory b-Purchases of equipment c-payments
of cash dividends d-Purchase of investments - CORRECT
ANSWER=Purchases of inventory
When selling PP&E for cash, the seller recognizes:
a-The seller recognizes a gain or loss for the difference between cash received and
the fair value of the asset sold
b-The seller recognizes a gain or loss for the difference between cash received and
the book value of the asset sold c-The seller recognizes losses, but not gains
d-None of these choices are correct - CORRECT ANSWER=The seller
recognizes a gain or loss for the difference between cash received and the book
value of the asset sold
The exclusion right to use a company's name and sell its product within a specified
geographic area is called:
a-trademark b-copyright c-
franchise - CORRECT
ANSWER=franchise
The practice of using the lower cost or market to value inventory reflects what
accounting principle? a-matching principle b-revenue recognition c-
conservatism d-Materiality - CORRECT ANSWER=Conservatism
ACCT 301 INTERMEDIATE ACCOUNTING
A+ GRADED EXAM MATERIAL 2026 2027
VERIFIED ANSWERS ACTUAL UPDATED
PRACTICE QUESTIONS HIGH YIELD
STUDY GUIDE INTERMEDIATE
ACCOUNTING EXAM PREPARATION
GRADED A+ SUCCESS REVIEW BRAND
NEW VERSION
The method of inventory usually provides a better match of expenses with
revenues a-LIFO b-FIFO a-Weighted Average d- all of the above -
CORRECT ANSWER=LIFO
A company's market value is generally less than its book value
TRUE
FALSE - CORRECT ANSWER=false
what is the effect of the adjusting journal entry to write down inventory to its net
realizable value? a-Decrease net income. b-Decrease total assets.
c-Decrease total assets and net income. d-Increase retained earnings. -
CORRECT ANSWER=Decrease total assets and net income.
when a seller offers a right of return, which is true:
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a-sales are net of estimated returns b-sales
are gross returns, returns are expenses c-sales
are net of actual returns
d-sales are gross of returns, returns are ignored - CORRECT
ANSWER=sales are net of estimated returns
which financial statement shows information for a point in time ONLY?
a-balance sheet b-income statement c- statement of cash flows
d-statement of shareholders equity - CORRECT
ANSWER=balance sheet
A company receiving a donated will record a(n):
a- increase in liabilities b-increase in revenue c-decrease in
assets d-decrease in liabilities - CORRECT
ANSWER=an increase in revenue
Collections of accounts receivable that previously have been written off result in
an increase in cash and an increase in:
a- accounts receivable b- bad debt expense c-allowance for
uncollectible accounts d- retained earnings - CORRECT
ANSWER=Allowance for uncollectible accounts
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Jo paid $840 to Tot co. for a 6 month course that started on June 1. As of August 1,
the financial records would show:
a-$560 Revenue; $280 Accounts Receivable b-
$560 revenue; $280 Deferred Revenue c-$280
Revenue; $560 Accounts Receivable d-$280
Revenue; $280 Deferred Revenue -
CORRECT ANSWER=280 Revenue;
$280 Deferred Revenue
when FASB issues new accounting standards, they call them:
a-Financial Technical Bulletins b-Financial Accounting Standards c-
Accounting Standards Updates d-Accounting Research Bulletins -
CORRECT ANSWER=Accounting Standards Updates
Which of the following is recorded by a credit to accounts receivable?
a-write off of bad debts b-sale of inventory on account c-estimating
the annual allowance for uncollectible accounts d-estimating annual
sales returns - CORRECT ANSWER=write off of bad debts
operating cash outflows would include:
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a-Purchases of inventory b-Purchases of equipment c-payments
of cash dividends d-Purchase of investments - CORRECT
ANSWER=Purchases of inventory
When selling PP&E for cash, the seller recognizes:
a-The seller recognizes a gain or loss for the difference between cash received and
the fair value of the asset sold
b-The seller recognizes a gain or loss for the difference between cash received and
the book value of the asset sold c-The seller recognizes losses, but not gains
d-None of these choices are correct - CORRECT ANSWER=The seller
recognizes a gain or loss for the difference between cash received and the book
value of the asset sold
The exclusion right to use a company's name and sell its product within a specified
geographic area is called:
a-trademark b-copyright c-
franchise - CORRECT
ANSWER=franchise
The practice of using the lower cost or market to value inventory reflects what
accounting principle? a-matching principle b-revenue recognition c-
conservatism d-Materiality - CORRECT ANSWER=Conservatism
