Medium Financial Accounting Practice Questions

203 free medium-difficulty Financial Accounting questions, drawn live from KomFi's calibrated bank. The exam backbone: the difficulty band where most scoring happens.

1. What is the initial lease liability recorded on the balance sheet?
2. What is the impairment loss to be recognized?
3. If it uses $50,000 of cash to pay off an account payable, what is the new current ratio?
4. A firm sells equipment with an original cost of $90,000 and… — How is this transaction reported in the Stateme
5. How should the $10,000 difference be recorded?
6. What is the required journal entry?
7. What is the final entry to record the share issuance?
8. If the unadjusted Allowance for Doubtful Accounts has a debit balance of $5,000, what is the Bad Debt Expense
9. What is the depreciation expense under the units-of-production method?
10. Using the indirect method, what is the Net Cash from Operating Activities?
11. If actual claims in Q1 are $15,000, what is the Warranty Expense for Q1?
12. What is the amount of interest expense recognized in the first six-month period using the effective-interest m
13. What is the adjusted book balance?
14. What is the required inventory write-down?
15. If the interest is paid annually and 3 months have elapsed since the last payment, what is the required adjust
16. What was the Supplies Expense for the month?
17. Under ASC 606, how much of the transaction price is allocated to the software license?
18. Using a 365-day year, what is the Cash Conversion Cycle (CCC)?
19. What is the net effect on the firm's 'Investment in Associate' asset account?
20. If the beginning Retained Earnings was $500,000, what is the ending balance of Retained Earnings?
21. Westwood Manufacturing takes an unrealized loss of $50,000 o… — Where is this loss reported under US GAAP?
22. How is the $200,000 gain treated under ASC 842?
23. What is the depreciation expense for Year 3?
24. What is the correct amount of Revenue to be recognized in the Income Statement?
25. What is the Net Deferred Tax Asset reported on the balance sheet?
26. A firm has $50,000 of available-for-sale (AFS) debt securiti… — How is this $2,000 gain reported?
27. A company sells a delivery truck for $15,000 cash. The truck… — How is this transaction adjusted in the Operat
28. What is the impact on the Balance Sheet on the declaration date (November 1)?
29. What is the impact on the Income Statement from the reissuance?
30. A company pays $50,000 to install a new HVAC system that wil… — How should this transaction be classified?

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