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ACG (Actual) Exam Graded A+ 2024
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ACG (Actual) Exam Graded A+ 2024
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ACG (Actual) Exam Graded A+ 2024A business organized as a corporation - ANS-does not require that stockholders be
personally liable for the debts of the business.
A certain company records wages only when it pays them. Recording the payment of
wages - ANS-decreases assets and decreases stockholders' equity.
A check correctly written by a company for $275 was incorrectly recorded by that same
company as $257. On the bank reconciliation - ANS-$18 should be deducted from the
cash balance per books.
A check correctly written by the company for $257 was incorrectly recorded by that
same company as $275. On the bank reconciliation - ANS-$18 should be added to the
cash balance per books.
A check written by the company for $530 was incorrectly recorded on the company's
books as $350. In the bank reconciliation, this $180 error would be - ANS-subtracted
from the cash balance per books.
A check written by the company for $530 was incorrectly recorded on the company's
books as $350. In the bank reconciliation, this $180 error would be - ANS-subtracted
from the cash balance per books.
A company accepted $60,000 of Visa credit card charges for merchandise sold on July
1. The bank that issued the Visa card charges 4% for its credit card use. The company's
journal entry to record this transaction will include a debit or debits to - ANS-Cash for
$57,600 and Service Charge Expense for $2,400
A company accepted a customer's Visa card as payment for $500 of merchandise it
sold to the customer. The bank that issued the credit card charges a 4% credit card fee.
The company's journal entry to record this transaction will include a debit or debits to -
ANS-Cash for $480 and Service Charge Expense for $20.
A company accepted a customer's Visa card as payment for $900 of merchandise it
sold to the customer. The bank that issued the credit card charges a 4% credit card fee.
The company's journal entry to record this transaction will include - ANS-debits to Cash
$864 and Service Charge Expense $36.
A company began the year with retained earnings of $620,000. During the year, the
company did the following:
Issued common stock, $840,000
Declared and paid dividends, $160,000
Incurred expenses, $2,400,000
,The company's ending retained earnings is $660,000. What was the company's
revenue for the year? - ANS-$2,600,000
A company borrowed money from a bank by signing a three-month note payable in the
amount of $15,000 on December 1. The note requires the company to pay interest at an
annual rate of 8%. The company records adjusting entries on December 31. The
adjusting entry that the company should record for accrued interest on December 31
would include a debit to interest expense for - ANS-$100.
A company collected $10,000 on November 1 for six months of rent The revenue
reported from this transaction during the current calendar year will be - ANS-$3,333.
A company had a transaction that decreased its assets by $5,000 and increased its
assets by $5,000 with a net effect of no change in its assets. This transaction could
have been a(n) - ANS-payment for a one-year insurance policy that will expire next
year.
A company had a transaction that increased its assets by $3,000 and increased its
liabilities by $3,000. This transaction could have been a(n - ANS-purchase of supplies
for $3,000 on account.
A company has an employee who is its warehouse custodian and its accountant. An
assessment of this situation indicates - ANS-segregation of duties is violated.
A company has an employee who is its warehouse custodian and its accountant. An
assessment of this situation indicates - ANS-segregation of duties is violated.
A company has bonds with a principal value of $1,000,000 outstanding. The
unamortized premium on the bonds is $14,000. The company redeemed the bonds at
104. What is the company's gain or loss on the redemption? - ANS-$26,000 loss
A company has bonds with a principal value of $500,000 outstanding. The unamortized
discount on the bonds is $14,000. The company redeemed the bonds at 104. What is
the company's gain or loss on the redemption? - ANS-$34,000 loss
A company has bonds with a principal value of $500,000 outstanding. The unamortized
premium on the bonds is $12,000. The company redeemed the bonds at 102. What is
the company's gain or loss on the redemption? - ANS-$2,000 gain
A company has bonds with a principal value of $500,000 outstanding. The unamortized
premium on the bonds is $14,000. The company redeemed the bonds at 101. What is
the company's gain or loss on the redemption? - ANS-$9,000 gain
A company has bonds with a principal value of $500,000 outstanding. The unamortized
premium on the bonds is $14,000. The company redeemed the bonds at 103. What is
the company's gain or loss on the redemption? - ANS-$1,000 loss
,A company has net sales of $400,000, cost of goods sold of $300,000, and operating
expenses of $20,000. What is its gross profit rate? - ANS-25%
A company has the following information: Cash balance per bank, Dec. 31, $10,500
Deposits in transit, $1,225 Notes receivable and interest collected by bank, $1,000 Bank
charge for check printing, $50 Outstanding checks, $450 NSF check, $100What is the
company's adjusted cash balance on Dec. 31? - ANS-$11,275.
A company has the following:
2022 2021
Ending inventory $32,650 $30,490
Cost of goods sold 178,000 174,200
Sales revenue 245,000 233,000
Net income 50,000 40,000
What is the company's inventory turnover for 2022? (rounded) - ANS-5.6 times
A company has the following:
20X2 20X1
Ending inventory $34,000 $32,000
Cost of goods sold 182,000 163,500
Sales revenue 240,000 233,000
Net income 100,000 80,000
What is its days' sales in inventory for 20X2? - ANS-68.2 days
A company has the following:
Beginning inventory, $90,000
Ending inventory, $70,000
Cost of goods sold, $880,000
Sales, $1,200,000
Net income, $40,000.
What is the company's inventory turnover ratio? - ANS-11.0 times.
A company has the following:
December 1 Beginning inventory of 15 units at $6.00 per unitDecember 7 Purchased 60
units at $6.25 per unitDecember 12 Sold 25 unitsDecember 20 Purchased 30 units at
$7.75 per unitDecember 29 Sold 10 units
Assuming that a perpetual inventory system is used, what is the ending inventory on a
LIFO basis for December? What if a periodic inventory system had been used instead
of perpetual? - ANS-$463.75 using perpetual, and $433.75 using periodic
A company has the following:
Sales revenue, $2,400,000
Beginning inventory, $150,000
Ending inventory, $250,000
Cost of goods sold, $1,400,000
, Net income, $150,000
What is its days' sales in inventory? - ANS-65.2 days
A company has the following:
Sales revenue, $515,000
Beginning inventory, $75,000
Ending inventory, $105,000
Cost of goods sold, $405,000
Net income, $25,000
What is its days' sales in inventory? - ANS-94.6 days
A company has the following:
Sales revenue, $515,000
Beginning inventory, $75,000
Ending inventory, $105,000
Cost of goods sold, $405,000
Net income, $25,000
What is its days' sales in inventory? - ANS-94.6 days
A company has the following:
Units Cost per unitDec. 1, Beginning balance 40 $41Dec. 14, Purchase 60 $42Dec. 21,
Purchase 55 $44
The company sold 100 units at $85 each on December 23. The company's tax rate is
30%. Operating expenses are $500. The company uses the perpetual inventory system.
What is the company's net income using LIFO? - ANS-$2,583
A company has the following: Cash balance per bank, $11,460 Cash balance per
books, $13,200 Outstanding checks, $2,325 Deposits in transit, $3,750 NSF check,
$240 Bank service charge, $75The net effect of the adjusting entries that the company
will journalize as a result of this reconciliation will - ANS-reduce its cash account by
$315.
A company has the following: Cash balance per bank, Dec. 31, $48,200. Note
receivable of $3,800 plus $200 of interest collected, $4,000. Outstanding checks,
$7,100. Deposits in transit, $2,700. Bank service charges, $50. NSF check, $500. How
much is the adjusted cash balance on Dec. 31? - ANS-43,800
A company has the following: Cash balance per books on Dec. 31, $9,400. Deposits in
transit, $1,100. Notes receivable with interest collected by bank, $2,500. Bank service
charges, $50. Outstanding checks, $1,450. NSF check, $400. How much is the adjusted
cash balance per books on Dec. 31? - ANS-$11,450
A company has: Cash balance per books on Dec. 31, $5,400 Deposits in transit, $550
Outstanding checks, $2,500 NSF check, $320 Notes receivable and interest collected
by bank, $950 Bank charge for check printing, $65The adjusted cash balance per books
on Dec. 31 is - ANS-$5,965.
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