ACCOUNTING CRASH COURSE ACTUAL
BRAND-NEW EXAM 2025/2026 BANK NEWEST
FROM WALL STREET PREP (WSP) TESTING
VERSIONS AND A STUDY GUIDE | EXPERT
VERIFIED FOR GUARANTEED PASS/ WSP
ACCOUNTING CRASHCOURSE ACTUAL
LATEST EXAM/ WALLSTREET PREP
Which of the following would not be reported as a
financing activities cash flow?
A) Issuing common stock for cash.
B) Purchasing treasury stock.
C) Cash dividend payments.
D) Purchase of a building by signing a note payable.
D) Purchase of a building by signing a note payable.
Which of the following transactions would result in an
increase in the current ratio?
A) Selling shares of stock to stockholders in exchange for
cash.
B) Declaration of a cash dividend by the board of
directors.
C) Purchasing a building with cash.
D) Collection of cash from an account receivable.
1
,A) Selling shares of stock to stockholders in exchange for
cash.
Which of the following transactions would result in a
decrease in the current ratio?
A) Purchasing $15 million in inventory from a vendor.
Payment is due in 90 days.
B) Purchasing a fixed asset with $5 million in cash .
C) Collection of $20 million in cash from an account
receivable.
D) Prepaying $50,000 in utilities (covers the next 30 days).
B) Purchasing a fixed asset with $5 million in cash .
A company reports $100 million total asset balance on
December 31, 2019 and net income of $10 million for the
year ending December 31, 2019. Which of the following
transactions during 2020 would most directly result in a
decrease in return on assets (ROA)? Assume end of year
balances for calculating ROA and ignore the impact of
taxes and evaluate each transaction independently.
A) On June 30, 2020 the company pays a vendor $5
million for recent inventory purchases.
B) The company purchases a $5 million non-depreciable
fixed asset on January 1, 2020, financed with a $5 million
note at 10% annual interest. The asset produces $0.5
million in incremental operating income during 2020.
2
,C) The company repays a $5 million loan obligation on
January 1, 2020, that it was paying 5% annual interest.
D) The company announces a 5% across-the-board
decrease in the price of the products it sells.
B) The company purchases a $5 million non-depreciable
fixed asset on January 1, 2020, financed with a $5 million
note at 10% annual interest. The asset produces $0.5
million in incremental operating income during 2020.
The Warren Company has provided the following
information:
- Net sales totaled $750,000.
- Beginning net accounts receivable was $65,000.
- Ending net accounts receivable was $85,000.
What was Warren’s average collection period?
36.5 days
The Jamie Corporation has provided the following
information:
- Total sales were $1,200,000.
- Beginning net accounts receivable was $45,000.
- Ending net accounts receivable was $65,000.
- Sales returns and allowances totaled $100,000.
3
, What was Jamie’s receivables turnover ratio (Use average
beginning and ending receivables)?
20.0
Clayton Company's cost of goods sold in the year of sale
(2014) was $750,000 and 2013 cost of goods sold was
$770,000. The inventory at the end of 2014 was $188,000
and $208,000 at the end of 2013. Using average inventory,
Clayton's inventory turnover during 2014 was closest to:
3.79
(Inventory turnover = COGS / Average inventory)
Boston Restaurants reported cost of goods sold of $322
million and accounts payable of $84 million for 2015. In
2014, cost of goods sold was $258 million and accounts
payable was $72 million. Using average accounts payables
balances, Boston Restaurants' accounts payable turnover
ratio in 2015 was closest to:
4.13
(Accounts payable turnover = COGS / average accounts
payable)
Which of the following statements regarding the debt-to-
equity ratio is correct?
A) The debt-to-equity ratio is a measure of a company's
ability to pay its debt.
B) The debt-to-equity ratio is a measure of investor and
4
BRAND-NEW EXAM 2025/2026 BANK NEWEST
FROM WALL STREET PREP (WSP) TESTING
VERSIONS AND A STUDY GUIDE | EXPERT
VERIFIED FOR GUARANTEED PASS/ WSP
ACCOUNTING CRASHCOURSE ACTUAL
LATEST EXAM/ WALLSTREET PREP
Which of the following would not be reported as a
financing activities cash flow?
A) Issuing common stock for cash.
B) Purchasing treasury stock.
C) Cash dividend payments.
D) Purchase of a building by signing a note payable.
D) Purchase of a building by signing a note payable.
Which of the following transactions would result in an
increase in the current ratio?
A) Selling shares of stock to stockholders in exchange for
cash.
B) Declaration of a cash dividend by the board of
directors.
C) Purchasing a building with cash.
D) Collection of cash from an account receivable.
1
,A) Selling shares of stock to stockholders in exchange for
cash.
Which of the following transactions would result in a
decrease in the current ratio?
A) Purchasing $15 million in inventory from a vendor.
Payment is due in 90 days.
B) Purchasing a fixed asset with $5 million in cash .
C) Collection of $20 million in cash from an account
receivable.
D) Prepaying $50,000 in utilities (covers the next 30 days).
B) Purchasing a fixed asset with $5 million in cash .
A company reports $100 million total asset balance on
December 31, 2019 and net income of $10 million for the
year ending December 31, 2019. Which of the following
transactions during 2020 would most directly result in a
decrease in return on assets (ROA)? Assume end of year
balances for calculating ROA and ignore the impact of
taxes and evaluate each transaction independently.
A) On June 30, 2020 the company pays a vendor $5
million for recent inventory purchases.
B) The company purchases a $5 million non-depreciable
fixed asset on January 1, 2020, financed with a $5 million
note at 10% annual interest. The asset produces $0.5
million in incremental operating income during 2020.
2
,C) The company repays a $5 million loan obligation on
January 1, 2020, that it was paying 5% annual interest.
D) The company announces a 5% across-the-board
decrease in the price of the products it sells.
B) The company purchases a $5 million non-depreciable
fixed asset on January 1, 2020, financed with a $5 million
note at 10% annual interest. The asset produces $0.5
million in incremental operating income during 2020.
The Warren Company has provided the following
information:
- Net sales totaled $750,000.
- Beginning net accounts receivable was $65,000.
- Ending net accounts receivable was $85,000.
What was Warren’s average collection period?
36.5 days
The Jamie Corporation has provided the following
information:
- Total sales were $1,200,000.
- Beginning net accounts receivable was $45,000.
- Ending net accounts receivable was $65,000.
- Sales returns and allowances totaled $100,000.
3
, What was Jamie’s receivables turnover ratio (Use average
beginning and ending receivables)?
20.0
Clayton Company's cost of goods sold in the year of sale
(2014) was $750,000 and 2013 cost of goods sold was
$770,000. The inventory at the end of 2014 was $188,000
and $208,000 at the end of 2013. Using average inventory,
Clayton's inventory turnover during 2014 was closest to:
3.79
(Inventory turnover = COGS / Average inventory)
Boston Restaurants reported cost of goods sold of $322
million and accounts payable of $84 million for 2015. In
2014, cost of goods sold was $258 million and accounts
payable was $72 million. Using average accounts payables
balances, Boston Restaurants' accounts payable turnover
ratio in 2015 was closest to:
4.13
(Accounts payable turnover = COGS / average accounts
payable)
Which of the following statements regarding the debt-to-
equity ratio is correct?
A) The debt-to-equity ratio is a measure of a company's
ability to pay its debt.
B) The debt-to-equity ratio is a measure of investor and
4
