CSUF ACCT 201A (Hoffman) Final Exam Latest
Update 2024-2025 Actual Exam from Credible
Source with 165 Questions and 100% Verified
Detailed Correct Answers Guaranteed
A company can accelerate its cash receipts by all of the following except: - CORRECT
ANSWER: writing off receivables.
A company has purchased a tract of land. It expects to build a production plant on the
land in approximately 5 years. During the 5 years before construction, the land will be
idle. The land should be reported as: - CORRECT ANSWER: a long-term investment.
A company makes a credit sale of $750 on June 13, terms 2/10, n/30, on which it grants
a return of $50 on June 16. What amount is received as payment in full on June 23? -
CORRECT ANSWER: $686
750-50=700
700*0.02=14
700-14=686
A company would minimize its depreciation expense in the first year of owning an asset
if it used: - CORRECT ANSWER: a high estimated life, a high salvage value, and
straight-line depreciation.
A ledger: - CORRECT ANSWER: is a record of all accounts maintained by a company
and their amounts.
A receivable that is evidenced by a formal instrument and that normally requires the
payment of interest is: - CORRECT ANSWER: a note receivable.
A revenue account: - CORRECT ANSWER: is increased by credits.
,A trial balance: - CORRECT ANSWER: will not balance if a correct journal entry is
posted twice.
Able Towing Company purchased a tow truck for $60,000 on January 1, 2022. It was
originally depreciated on a straight-line basis over 10 years with an assumed salvage
value of $12,000. On December 31, 2024, before adjusting entries had been made, the
company decided to change the remaining estimated life to 4 years (including 2024)
and the salvage value to $2,000. What was the depreciation expense for 2024? -
CORRECT ANSWER: $12,100
($60,000 - $12,000)/10 years = $4,800 per year.
($60,000 - 2 x 4,800 = $50,400)
($50,400 - $2,000)/(6-2) = $12,100
Accounts and notes receivable are reported in the current assets section of the balance
sheet at: - CORRECT ANSWER: cash (net) realizable value
Additions to plant assets are: - CORRECT ANSWER: capital expenditures.
Adjusting entries are made to ensure that: - CORRECT ANSWER: All of the above:
-expenses are recognized in the period in which they are incurred
-revenues are recorded in the period in which the performance obligation is satisfied
-balance sheet and income statement accounts have correct balances at the end of an
accounting period.
Adjustments for accrued revenues: - CORRECT ANSWER: increase assets and
increase revenues.
Adjustments for prepaid expenses: - CORRECT ANSWER: decrease assets and
increase expenses.
Adjustments for unearned revenues: - CORRECT ANSWER: decrease liabilities and
increase revenues.
, All of the following are required steps in the accounting cycle except: - CORRECT
ANSWER: prepare financial statements from the unadjusted trial balance.
An analysis and aging of the accounts receivable of Raja Company at December 31
reveal these data:
Accounts receivable: $800,000
Allowance for doubtful accounts per books before adjustment (credit): $50,000
Amounts expected to become uncollectible : $65,000
What is the cash realizable value of the accounts receivable at December 31, after
adjustment? - CORRECT ANSWER: $735,000
(800,000-65,000)
As a result of a thorough physical inventory, Railway Company determined that it had
inventory worth $180,000 at December 31, 2022. This count did not take into
consideration the following facts. Rogers Consignment Store currently has goods worth
$35,000 on its sales floor that belong to Railway but are being sold on consignment by
Rogers. The selling price of these goods is $50,000. Railway purchased $13,000 of
goods that were shipped on December 27, FOB destination, that will be received by
Railway on January 3. Determine the correct amount of inventory that Railway should
report. - CORRECT ANSWER: $215,000
(180,000+ 35,000)
As of December 31, 2022, Rockford Corporation has assets of $3,500 and stockholders'
equity of $1,500. What are the liabilities for Rockford as of December 31, 2022? -
CORRECT ANSWER: $2,000
(3,500-1,500)
Bennie Razor Company has decided to sell one of its old manufacturing machines on
June 30, 2022. The machine was purchased for $80,000 on January 1, 2018, and was
depreciated on a straight-line basis for 10 years assuming no salvage value. If the
machine was sold for $26,000, what was the amount of the gain or loss recorded at the
time of the sale? - CORRECT ANSWER: $18,000 loss
(80,000/10) x 4.5 years= 36,000
Update 2024-2025 Actual Exam from Credible
Source with 165 Questions and 100% Verified
Detailed Correct Answers Guaranteed
A company can accelerate its cash receipts by all of the following except: - CORRECT
ANSWER: writing off receivables.
A company has purchased a tract of land. It expects to build a production plant on the
land in approximately 5 years. During the 5 years before construction, the land will be
idle. The land should be reported as: - CORRECT ANSWER: a long-term investment.
A company makes a credit sale of $750 on June 13, terms 2/10, n/30, on which it grants
a return of $50 on June 16. What amount is received as payment in full on June 23? -
CORRECT ANSWER: $686
750-50=700
700*0.02=14
700-14=686
A company would minimize its depreciation expense in the first year of owning an asset
if it used: - CORRECT ANSWER: a high estimated life, a high salvage value, and
straight-line depreciation.
A ledger: - CORRECT ANSWER: is a record of all accounts maintained by a company
and their amounts.
A receivable that is evidenced by a formal instrument and that normally requires the
payment of interest is: - CORRECT ANSWER: a note receivable.
A revenue account: - CORRECT ANSWER: is increased by credits.
,A trial balance: - CORRECT ANSWER: will not balance if a correct journal entry is
posted twice.
Able Towing Company purchased a tow truck for $60,000 on January 1, 2022. It was
originally depreciated on a straight-line basis over 10 years with an assumed salvage
value of $12,000. On December 31, 2024, before adjusting entries had been made, the
company decided to change the remaining estimated life to 4 years (including 2024)
and the salvage value to $2,000. What was the depreciation expense for 2024? -
CORRECT ANSWER: $12,100
($60,000 - $12,000)/10 years = $4,800 per year.
($60,000 - 2 x 4,800 = $50,400)
($50,400 - $2,000)/(6-2) = $12,100
Accounts and notes receivable are reported in the current assets section of the balance
sheet at: - CORRECT ANSWER: cash (net) realizable value
Additions to plant assets are: - CORRECT ANSWER: capital expenditures.
Adjusting entries are made to ensure that: - CORRECT ANSWER: All of the above:
-expenses are recognized in the period in which they are incurred
-revenues are recorded in the period in which the performance obligation is satisfied
-balance sheet and income statement accounts have correct balances at the end of an
accounting period.
Adjustments for accrued revenues: - CORRECT ANSWER: increase assets and
increase revenues.
Adjustments for prepaid expenses: - CORRECT ANSWER: decrease assets and
increase expenses.
Adjustments for unearned revenues: - CORRECT ANSWER: decrease liabilities and
increase revenues.
, All of the following are required steps in the accounting cycle except: - CORRECT
ANSWER: prepare financial statements from the unadjusted trial balance.
An analysis and aging of the accounts receivable of Raja Company at December 31
reveal these data:
Accounts receivable: $800,000
Allowance for doubtful accounts per books before adjustment (credit): $50,000
Amounts expected to become uncollectible : $65,000
What is the cash realizable value of the accounts receivable at December 31, after
adjustment? - CORRECT ANSWER: $735,000
(800,000-65,000)
As a result of a thorough physical inventory, Railway Company determined that it had
inventory worth $180,000 at December 31, 2022. This count did not take into
consideration the following facts. Rogers Consignment Store currently has goods worth
$35,000 on its sales floor that belong to Railway but are being sold on consignment by
Rogers. The selling price of these goods is $50,000. Railway purchased $13,000 of
goods that were shipped on December 27, FOB destination, that will be received by
Railway on January 3. Determine the correct amount of inventory that Railway should
report. - CORRECT ANSWER: $215,000
(180,000+ 35,000)
As of December 31, 2022, Rockford Corporation has assets of $3,500 and stockholders'
equity of $1,500. What are the liabilities for Rockford as of December 31, 2022? -
CORRECT ANSWER: $2,000
(3,500-1,500)
Bennie Razor Company has decided to sell one of its old manufacturing machines on
June 30, 2022. The machine was purchased for $80,000 on January 1, 2018, and was
depreciated on a straight-line basis for 10 years assuming no salvage value. If the
machine was sold for $26,000, what was the amount of the gain or loss recorded at the
time of the sale? - CORRECT ANSWER: $18,000 loss
(80,000/10) x 4.5 years= 36,000
