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ACCOUNTING EXAM LATEST VERSION -2025/2026- 100+
QUESTIONS AND VERIFIESD ANSWERS ALL THE BEST
Given the following information for Potter Company, what are Net Sales?
Beginning Inventory 10,000
Gross Profit 60,000
Ending Inventory 9,000
Net Purchases 45,000
A) $ 46,000
B) $ 55,000
C) $ 106,000
D) $ 105,000
C) $ 106,000
Which of the following is true about Cost of Goods Sold?
A) it is a contra-asset on the balance sheet
B) it is an expense
C) it includes selling and administrative costs
D) it includes the cost of bad debts
b. it is an expense
, 2
Which accounting principle may allow a company to report an amount NOT in
accordance with GAAP?
A) materiality
B) cost
C) conservatism
D) there is no such principle
A) materiality
Which of the following would require a journal entry on Foster's books?
A) outstanding checks
B) deposits in transit
C) customer check returned by bank as NSF
D) all of the above would have required a journal entry to correct foster's books
C) Customer Check returned by bank as NSF
What basic principle requires the lower-of-cost-or-market rule?
a) revenue recognition
b) consistency
c) time period
d) conservatism
D) Conservatism
If a merchandiser's ending inventory on December 31, 2011 is counted incorrectly,
which of the following will also be incorrect for 2011?
ACCOUNTING EXAM LATEST VERSION -2025/2026- 100+
QUESTIONS AND VERIFIESD ANSWERS ALL THE BEST
Given the following information for Potter Company, what are Net Sales?
Beginning Inventory 10,000
Gross Profit 60,000
Ending Inventory 9,000
Net Purchases 45,000
A) $ 46,000
B) $ 55,000
C) $ 106,000
D) $ 105,000
C) $ 106,000
Which of the following is true about Cost of Goods Sold?
A) it is a contra-asset on the balance sheet
B) it is an expense
C) it includes selling and administrative costs
D) it includes the cost of bad debts
b. it is an expense
, 2
Which accounting principle may allow a company to report an amount NOT in
accordance with GAAP?
A) materiality
B) cost
C) conservatism
D) there is no such principle
A) materiality
Which of the following would require a journal entry on Foster's books?
A) outstanding checks
B) deposits in transit
C) customer check returned by bank as NSF
D) all of the above would have required a journal entry to correct foster's books
C) Customer Check returned by bank as NSF
What basic principle requires the lower-of-cost-or-market rule?
a) revenue recognition
b) consistency
c) time period
d) conservatism
D) Conservatism
If a merchandiser's ending inventory on December 31, 2011 is counted incorrectly,
which of the following will also be incorrect for 2011?
