Easy Financial Accounting Practice Questions

150 free easy-difficulty Financial Accounting questions, drawn live from KomFi's calibrated bank. Build the foundation first: these test the core mechanics every harder question assumes.

1. If employees work 8 hours per day, what is the required wage accrual?
2. How should the $80 million difference be recorded?
3. What is the Quick Ratio (Acid-Test Ratio)?
4. What amount of Goodwill should be recorded under ASC 805?
5. A customer pays $200 to settle an outstanding Account Receiv… — How does this transaction affect the Statement
6. If sales for the period are $300,000, what is the estimated ending inventory at cost using the Retail Inventor
7. What is the effect on the accounting equation on the date of declaration?
8. A company repurchases $300,000 of its own stock in the open… — How is this transaction reported on the Balance
9. What is the total number of days in the cycle?
10. What is the debt-to-equity (D/E) ratio?
11. If the firm sold 100 units during the period, what is the valuation of the ending inventory?
12. Using the expected value method for variable consideration, what is the total revenue recognized?
13. Which of the following accounts is the proper contra-account to 'Property, Plant, and Equipment'?
14. Which of the following describes the immediate impact on the accounting equation?
15. In the Operating section of the Cash Flow Statement (indirect method), how are these items handled?
16. What is the Cash Flow from Operations (CFO) using the indirect method?
17. What is the necessary adjusting journal entry?
18. Under the Lower of Cost or Net Realizable Value (LCNRV) rule, what is the per-unit carrying value?
19. How much cash does Highland actually receive from the bank at issuance?
20. What is the total capitalized cost of the machine?
21. What journal entry is required to record the periodic provision for credit losses?
22. Which of the following accounts is a temporary (nominal) account that must be closed to zero at the end of the
23. A firm using the indirect method for the Statement of Cash Flows reports Net Income of $50,000. During the yea
24. Using the allowance method, which journal entry is recorded?
25. What is the balance in the Prepaid Insurance account on the December 31 Balance Sheet?
26. Using the straight-line method, what is the Depreciation Expense for the first year?
27. Under ASC 842, a lessee classifies a lease as 'Operating'. How is the periodic lease expense typically recogni
28. A company holds an investment in bonds classified as 'Availa… — Where is this gain reported under ASC 320?
29. Which of the following correctly identifies all the items classified as current assets on a classified balance
30. In a period of consistently rising prices, which inventory cost flow assumption will result in the lowest Cost

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