accounting-cycle-financial-statements — Financial Accounting Practice Questions

140 free Financial Accounting questions on accounting-cycle-financial-statements: 44 easy, 83 medium, and 13 hard, every one exam-realistic and fully explained once you sign in. This is the fastest way to turn accounting-cycle-financial-statements from a weakness into a scoring area — drill it in 10-question reps with immediate feedback.

Drill accounting-cycle-financial-statements free with full explanations →

1. Which of the following describes the immediate impact on the accounting equation?
2. Which of the following accounts is a temporary (nominal) account that must be closed to zero at the end of the
3. What is the necessary adjusting journal entry?
4. If employees work 8 hours per day, what is the required wage accrual?
5. Under ASC 842, a lessee classifies a lease as 'Operating'. How is the periodic lease expense typically recogni
6. A company holds an investment in bonds classified as 'Availa… — Where is this gain reported under ASC 320?
7. What is the balance in the Prepaid Insurance account on the December 31 Balance Sheet?
8. What is the final entry to record the share issuance?
9. Under the accrual basis of accounting, when should Aurora Logistics recognize the $40,000 in revenue?
10. Which of the following correctly identifies all the items classified as current assets on a classified balance
11. If the interest is paid annually and 3 months have elapsed since the last payment, what is the required adjust
12. What is the impact on the Balance Sheet on the declaration date (November 1)?
13. Under ASC 606, how should the remaining $7,000,000 be reported on the Year 1 Balance Sheet?
14. Westwood Manufacturing takes an unrealized loss of $50,000 o… — Where is this loss reported under US GAAP?
15. What is the correct amount of Revenue to be recognized in the Income Statement?
16. A firm has $50,000 of available-for-sale (AFS) debt securiti… — How is this $2,000 gain reported?
17. What is the Net Deferred Tax Asset reported on the balance sheet?
18. What was the Supplies Expense for the month?
19. A software company spends $2,000,000 on R&D for a new produc… — How should these costs be recorded under ASC 9
20. What is the impact on the income statement and balance sheet at the end of Year 1?
21. Acquirer Co. pays $400 million for Target Co. The fair value… — How is this recorded?
22. A company holds debt securities classified as 'Available-for… — Ignoring taxes, how is this $5,000 increase re
23. What is the 'Interest Revenue' to be recognized on the December 31 Income Statement?
24. Under the matching principle, when is the20,000 bad debt expense recognized?
25. If it negotiates better terms with suppliers, increasing DPO to 30 days while others remain constant, what is
26. What is the primary purpose of a Trial Balance?
27. According to the Conceptual Framework, which of the following is NOT an essential characteristic of an asset?
28. When a company 'closes the books', which of the following accounts will be reset to a zero balance?
29. What is the required adjusting entry on December 31 to comply with the matching principle?
30. A bond with a face value of 1,000 is issued at 103. The journal entry to record this issuance includes: