PRINCIPLES OF ACCOUNTING FINAL
EXAM QUESTIONS WITH CORRECT
ANSWERS||100% GUARANTEED
PASS||UPDATED 2026/2027
SYLLABUS||ALREADY A+
GRADED||<<NEWEST VERSION>>
According to GAAP, physical inventory counts must be done:
A: when using a periodic inventory method
B: when using a perpetual inventory method
C: regardless of what inventory method is used
D: when the replacement value of the inventory is lower than the cost - ANSWER
✓C
Inventory for a merchandising business is a(n):
A: revenue
B: asset
C: liability
D: part of stockholders equity - ANSWER ✓ B
Which of the following would indicate poor internal control over accounts
receivable?
A: the same person handling cash receipts also records the accounts receivables
transactions
B: The person who handles accounts receivable would not write off accounts as
uncollectible
C: The mailroom employee opens the mail and then gives the cash receipts to
another employee
D: the person handling cash receipts passes the receipts to another employee who
enters them into accounts receivable - ANSWER ✓ A
Internal control is:
A: the preparation of fraudulent financial statements
,B: the act of stealing assets from a business
C: the process that helps a business achieve its objectives, such as operating
efficiently and effectively
D: the reconciliation of the bank's cash balance to the book's cash balance -
ANSWER ✓ C
Acme corporation uses a weighted average perpetual system. There was no
beginning inventory
AUG 2, 10 units were purchased at 12 per unit
Aug 18, 15 units were purchased at 14 per unit
aug 19, 12 units were sold
what was cost of goods sold for this sale?
A:150.50
B: 158.40
C: 210.00
D: 330.00 - ANSWER ✓ B
A company purchased a computer system on March 1, 2014. Its cost was 35,000
and it had an estimated salvage value of 5,000. It was expected to have a useful life
for four years. To the nearest dollar, the depreciation for 2014 using straight line
depreciation will be:
A: 7,500
B: 5,625
C: 6,250
D:8,750 - ANSWER ✓ C
which of the following would NOT be considered part of the cost of machinery
and equipment?
A: test runs
B: installation costs
C: Delivery charges
D: repairs and maintenance after start up - ANSWER ✓ D
how is the book value of a depreciable asset calculated?
A: cost less salvage value
B: cost less accumulated depreciation
C: cost less both salvage value and less accumulated depreciation
, D: Some other calculation - ANSWER ✓ B
Which of the following best explains the meaning of Capitalize?
A: allocate the costs of a tangible asset to expense over its estimated useful life
B: record an expenditure as an expense
C: record an expenditure as a revenue
D: Record an expenditure as an asset - ANSWER ✓ D
A company leased 10year 8% bonds with a par value of 200,000. Interest is to be
paid semiannually. Market rate at the time these bonds were issued was 9%. What
is the amount of the first semiannual cash interest payment?
A: 16,000
B: 9,000
C: 8,000
D: 18,000 - ANSWER ✓ C
Patents and trademarks are:
A: depreciated
B: never expensed
C: developed
D: amortized - ANSWER ✓ D
Which of the following best explains the meaning of Collateral?
A: a guarantee that a product or service is free from defect
B: the principle portion of a long term liability that is payable within one year
C: assets pledged to secure repayment of a loan
D: a potential liability that depends on the outcome of a future event - ANSWER
✓C
when a company issues bonds, what are they doing?
A: selling part of the company
B: buying part of another company
C: borrowing money
D: lending money - ANSWER ✓ C
which of the following best explains the meaning of: Residual Value?
A: cost less accumulated depreciation
B: cost less salvage value
C: the amount by which market value differs from book value
EXAM QUESTIONS WITH CORRECT
ANSWERS||100% GUARANTEED
PASS||UPDATED 2026/2027
SYLLABUS||ALREADY A+
GRADED||<<NEWEST VERSION>>
According to GAAP, physical inventory counts must be done:
A: when using a periodic inventory method
B: when using a perpetual inventory method
C: regardless of what inventory method is used
D: when the replacement value of the inventory is lower than the cost - ANSWER
✓C
Inventory for a merchandising business is a(n):
A: revenue
B: asset
C: liability
D: part of stockholders equity - ANSWER ✓ B
Which of the following would indicate poor internal control over accounts
receivable?
A: the same person handling cash receipts also records the accounts receivables
transactions
B: The person who handles accounts receivable would not write off accounts as
uncollectible
C: The mailroom employee opens the mail and then gives the cash receipts to
another employee
D: the person handling cash receipts passes the receipts to another employee who
enters them into accounts receivable - ANSWER ✓ A
Internal control is:
A: the preparation of fraudulent financial statements
,B: the act of stealing assets from a business
C: the process that helps a business achieve its objectives, such as operating
efficiently and effectively
D: the reconciliation of the bank's cash balance to the book's cash balance -
ANSWER ✓ C
Acme corporation uses a weighted average perpetual system. There was no
beginning inventory
AUG 2, 10 units were purchased at 12 per unit
Aug 18, 15 units were purchased at 14 per unit
aug 19, 12 units were sold
what was cost of goods sold for this sale?
A:150.50
B: 158.40
C: 210.00
D: 330.00 - ANSWER ✓ B
A company purchased a computer system on March 1, 2014. Its cost was 35,000
and it had an estimated salvage value of 5,000. It was expected to have a useful life
for four years. To the nearest dollar, the depreciation for 2014 using straight line
depreciation will be:
A: 7,500
B: 5,625
C: 6,250
D:8,750 - ANSWER ✓ C
which of the following would NOT be considered part of the cost of machinery
and equipment?
A: test runs
B: installation costs
C: Delivery charges
D: repairs and maintenance after start up - ANSWER ✓ D
how is the book value of a depreciable asset calculated?
A: cost less salvage value
B: cost less accumulated depreciation
C: cost less both salvage value and less accumulated depreciation
, D: Some other calculation - ANSWER ✓ B
Which of the following best explains the meaning of Capitalize?
A: allocate the costs of a tangible asset to expense over its estimated useful life
B: record an expenditure as an expense
C: record an expenditure as a revenue
D: Record an expenditure as an asset - ANSWER ✓ D
A company leased 10year 8% bonds with a par value of 200,000. Interest is to be
paid semiannually. Market rate at the time these bonds were issued was 9%. What
is the amount of the first semiannual cash interest payment?
A: 16,000
B: 9,000
C: 8,000
D: 18,000 - ANSWER ✓ C
Patents and trademarks are:
A: depreciated
B: never expensed
C: developed
D: amortized - ANSWER ✓ D
Which of the following best explains the meaning of Collateral?
A: a guarantee that a product or service is free from defect
B: the principle portion of a long term liability that is payable within one year
C: assets pledged to secure repayment of a loan
D: a potential liability that depends on the outcome of a future event - ANSWER
✓C
when a company issues bonds, what are they doing?
A: selling part of the company
B: buying part of another company
C: borrowing money
D: lending money - ANSWER ✓ C
which of the following best explains the meaning of: Residual Value?
A: cost less accumulated depreciation
B: cost less salvage value
C: the amount by which market value differs from book value
