Exam (elaborations)
ACG EXAM QUESTIONS AND ANSWERS
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ACG EXAM QUESTIONS AND ANSWERS
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Name: Score:352 Multiple choice questions
Term 1 of 352
The company sold 100 units at $80 each on December 23. The company's tax rate is 25%.
Operating expenses are $1,000. The company uses the perpetual inventory system. What is the
company's gross profit using LIFO?
$5,400
$142,000 credit
$14,000
$3,655
Term 2 of 352
Which of the following represents the maximum number of shares a corporation can issue?
Authorized shares
A trial balance prepared at year-end
Goods shipped on consignment to another company
All of these statements are correct.
Term 3 of 352
A transaction increased a company's assets by $5,000 and increased its stockholders' equity by
$5,000. This transaction could have been a(n)
exceeds the amount of cash to be paid for interest for the period.
inventory account is increased by the freight costs.
investment of cash into the business by the stockholders.
A check written by the company for $1,200 was incorrectly recorded by the bank as $120.
,Term 4 of 352
Which one of the statements below is true?
A check written by the company for $300 was incorrectly recorded by the bank as $30.
Issuing of common stock to stockholders
The deposits in transit are added to the balance per the bank statement, and
outstanding checks are deducted from the balance per the bank statement during the
bank reconciliation process.
Sales revenue minus gross profit
Term 5 of 352
A corporation issues a $750,000, 12%, 15-year mortgage note. The terms provide for annual
installment payments of $95,625. What is the remaining unpaid principal balance of the
mortgage payable account after the first annual payment?
$744,375
$585,364
$69,000
$244,000
Term 6 of 352
Which of the following should be included in the physical inventory of a company?
A chart of accounts for the company
The monetary unit assumption
Goods shipped on consignment to another company
Current assets
,Term 7 of 352
The maturity value of a $40,000, 9%, 30-day note receivable dated July 3 is
$470,000
$40,300.
$322,000.
$28,000
Term 8 of 352
Current assets divided by current liabilities is known as
company size
perpetual inventory system
the current ratio.
dividends.
Term 9 of 352
A NSF check should appear in which section of the bank reconciliation?
Expense recognition principle.
Lifetime operations.
All temporary accounts.
Deduction from the balance per books.
Term 10 of 352
Financial information for Edwards Incorporated is presented below:
$40,000
$9,000
$50,000
$14,000
, Term 11 of 352
A company purchased a truck for $27,000. The company paid $1,200 to paint the company's
logo on the truck. The estimated salvage value and useful life are $1,200 and 5 years,
respectively. How much is the accumulated depreciation under the straight-line method after
three years?
$16,200
$585,364
$17,200
$248,166
Term 12 of 352
Which one of the following equals cost of goods sold?
$5,500,000.
Service revenue
$142,000 credit
Sales revenue minus gross profit
Term 13 of 352
Which of the following is determined at a different time under the perpetual inventory method
than under the periodic inventory method?
Rent expense
5.6 times
Allowance estimation
Cost of goods sold
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