Financial Accounting Quiz Questions and Answers

Financial Accounting Quiz Questions and Answers


Question 1
Question 1

One transaction can decrease two accounts.



Question 2

The mid-period close process uses credits to reset expenses to zero.



Question 3

Accrual accounting generally does not provide a more complete picture.



Question 4

United Airlines spends $100 million in cash to obtain gate rights. He will serve at Reagan National Airport for the next five years. This outflow is reported in the operations section of the cash flow section.



Question 5

All else being equal, entities use double. – Generally, declining balance depreciation recognizes fixed assets that look younger (that is, have a lower depreciation rate) than companies that use straight line depreciation.



Question 6
Kellogg announced a major LIFO liquidation in 2020. To project the performance in 2021, assuming no further liquidations, we expect the 2021 cost of goods sold to be higher compared to the 2020 cost of goods sold.


Question 7

Companies that understated their bad debt expense during the year understated the assets section of their balance sheet balance. You will report the bad debt expense incurred.


Question 8

The income statement dates span the period covered. For example:



Question 9

The balance sheet accumulated depreciation is always equal to the year’s depreciation expense. Become.


Incorrect >
Question 10

To increase sales. The U.S. government should encourage businesses to use FIFO for tax expenses.



Question 11

Copy Which of the following statements is least true? Helpful? Are you trying to evaluate the financial performance of General Mills Inc.?

A Read Management’s Discussion and Analysis in 10-K
B Analyze the information in the financial statement footnotes.
Compare C General Mills Inc. Revenue growth of . relative to competitor revenue growth.
D Grab some Lucky Charms Cereal and get ready for the upcoming St. Patrick’s Day.

Question 12

Which one? Is the following a temporary account?

  1. Retained earnings
  2. Unearned income
  3. Accumulated depreciation
  4. Prepaid Expenses
  5. None of the above accounts are temporary accounts.

Question 13

Willis Towers His Watson current liabilities were his $16,070 and equity as of December 31, 2019 was his $16,070. His net worth was $35,426. What is Willis Towers Watson’s long-term debt as of December 31, 2019? (All figures are in millions)

  1. $19,356
  2. $8,987 >
    Question 2
  3. $25,057
  4. $5,701
  5. None of the above are long-term debt of Willis Towers Watson

Question 14

Booz Allen Hamilton (NYSE: BAH) is a publicly traded company. is. We provide consulting services primarily to the federal government. Headquarters are located in McLean, Virginia. Lockheed Martin:

  1. Financial statements must be prepared in accordance with US GAAP.
  2. No need to prepare financial statements.
  3. Prepare financial statements in accordance with IFRS or US GAAP.
  4. Financial reports must be prepared in accordance with government accounting standards.
  5. Financial statements must be prepared according to IFRS.

Question 15

Tootsie Roll Industries has sold equipment with a purchase price of US$30,000 and accumulated depreciation of US$12,300 (book value of US$17,700). And made a profit of $3,500. The journal entry that records this sale includes everything except:

  1. $30,000 Equipment Credit
  2. $21,200 Direct Debit
  3. $12,300 Accumulated Depreciation
  4. Target Profit on Sale $3,500
  5. All of the above items are included in the journal entry for recording the sale.

Question 16

Song Bird Software sells an HVAC software system to a residential customer for an average of $11,500 cash per unit of his. The purchase price includes semi-annual renewal fees for the first two years. Backlogs represent approximately 85% of the purchase price. At the time of sale, the journal entries recorded by Song Bird must include the following:

  1. $11,500 Cash Credit
  2. $11,500 Sales Credit
  3. $9,775 Sales Credit and $1,725 ​​Pre-Received Sales Credit
  4. $11,500 Credit for Unearned Income
  5. Credit for sales is $1,725 ​​and credit for unearned sales is $9,775

Question 17

McKesson Corporation reported LIFO on March 31, 2020 – Reserve is 4 $444 million as of March 2020/31/2020 LIFO reserves are $696 million. 2019. Decrease in reserves

  1. Input prices increased from 2019 to 2020
  2. Input prices fell from 2019 to 2020
  3. The company sold more inventory than he bought in 2020
  4. The company bought more inventory than his 2020.
  5. Both A and D
  6. Both B and C

Question 18

Panera purchased the stove on January 1, 2020 for $200,000. The device is estimated to have a useful life of 10 years and a residual value of US$5,000. Panera uses the double declining balance method of depreciation. What is the depreciation expense for the equipment for the year ended December 31, 2021?

Question 3

  1. $128,000
  2. $19,600
  3. $32,000
  4. $40,000
  5. $260,000

Question 19

Biotech Company Biogen, Inc., reportedly misrepresented material financial information and disclosed millions of dollars in “cost of goods sold” expenses for the fiscal year ended December 31, 2021. This misclassification in the income statement, rather than in “with research,” had the following effects:

  1. Gross profit
  2. Net income
  3. Business results
  4. Sales
  5. All of the above
  6. None of the above

Question 20

The Chicago Bulls have announced and are on sale for their season tickets for the 2022-2023 basketball season. Season tickets sell for $3,810. This season pass includes tickets to 30 home games from November 2022 to May 2023. The Chicago Bulls collect money when customers book season tickets. When and how much will the Bulls book? Explain your answer.

Question 21

Wyndham Destinations is an American timeshare company headquartered in Orlando, Florida. The Company develops, sells and manages timeshare properties under multiple vacation ownership clubs, including Club Wyndham and WorldMark by Wyndham. As of December 31, 2020, Wyndham had total fixed assets of $1,724 million and accumulated depreciation of $944 million. 2021 is expected to be sluggish, and Wyndham hopes to report an increase in spending after a significant drop. How will Wyndham change two assumptions related to tangible and fixed assets to increase associated costs?

Question 22

Eventbrite’s mission is to: Bringing the world together through experience. “We believe that live experiences are fundamental to satisfying the human need for connection.” Selling concert tickets.


provides a platform for selling tickets to attendees. To cover these costs, the event attendee pays her 2% fee on top of the ticket face value. Eventbrite will charge the face value of the ticket plus a commission at the time of sale. In February 2021, the company sold tickets with a face value of $5,000. How and when will Eventbrite recognize revenue?

Question 23

Value for Less Decor Inc. is an American furniture chain with approximately 300 stores in the United States, Canada, Europe, the Middle East and Asia. In 1932 he was founded by two brothers.

The following information is included in Value for Less’s financial statements for the year ended 30 June 2021. This is not a trial balance. This is the list of accounts that will appear on the Balance Sheet and Income Statement for the year ended June 30, 2021. All amounts represent regular balances (for example, Accounts Payable has a credit balance of $25,595). Note that the surplus balance is the final surplus.

Value for Less Decor announced a dividend of $16,394 for the year ended June 30, 2020. What was your net income for the year ended June 30, 2021? (Please specify)

Accounts payable25,595Inventory127,790
Accounts receivable10,857Long-term debt155,747
Accrued expenses18,534Other current liabilities31,074
Accumulated depreciation329,884Prepaid epenses23,483
Allocance for doubtful accounts550Property, plant and equipment675,904
Cash72,276Retained earnings630,189
Common stock380,750Revenues589,837
Cost of sales300,805SGA expense252,700
Deferred revenues64,031Tax expense5,289
Intangible assets45,128Treasury stock680,916
Interest expense2,300

Question 24

The company estimates that 5% of loan sales in June 2021 are considered uncollectible over the next few years. Under GAAP, should the impact of these bad debts be recognized in the financial statements (i.e., income statement) for the year ended June 30, 2021, or for the year ended June 30, 2022? should be recognized in the company’s financial statements (i.e. the income statement)? Briefly explain your answer.

Question 25

com sells player jerseys as well as products from all major sports leagues. Fanatics pays him a 9% royalty on related sales. In 2021, Fanatics sold licensed products for $36,000. The cost of holding these sales was $19,325. The Company has not yet made any cash payments in connection with these sales. Prepare journal entries related to sales of

  • >>>>>Licensed products
  • >>>>>Royalties created by in 2021.

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