Practice Quiz

CPA Accountant Review Questions - Question List

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21. A marketing expense and an overhead expense are both part of the:
  1. Direct expenses
  2. Operating expenses
  3. Indirect expenses
  4. Total expenses
  5. General expenses
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22. True or false: Expenses cannot be estimated on income statements.
  1. True
  2. False
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23. Larry’s accounts show the following for the year:

Net Sales on Account: $200,000
COGS: $150,000
Accounts Receivable at the beginning of the year: $22,500
Accounts Receivable at year end: $17,500
Inventory at the beginning of the year: $45,000
Inventory at the end of the year: $55,000

What is the accounts receivable turnover ratio for the year?
  1. 10
  2. 4
  3. 2.5
  4. 5
  5. There is not enough information to compute the turnover ratio.
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24. Petey’s Printing discards a copier that it purchased for $100,000. If the machine’s accumulated depreciation is $99,000, what would the journal entry be to record the disposal?
  1. Debit Accumulated Depreciation of Copier, $99,000; credit Copier, $100,000; credit Loss on Disposal of Copier, $1,000.
  2. Debit Accumulated Depreciation of Copier, $99,000; credit Copier, $100,000; debit Loss on Disposal of Copier, $1,000.
  3. Credit Accumulated Depreciation of Copier, $99,000; debit Copier, $100,000; debit Loss on Disposal of Copier, $1,000.
  4. Debit Accumulated Depreciation of Copier, $99,000; debit Copier, $100,000; credit Loss on Disposal of Copier, $1,000.
  5. Credit Accumulated Depreciation of Copier, $99,000; credit Copier, $100,000; debit Loss on Disposal of Copier, $1,000.
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25. If Petey’s Printing signs a contract on December 28 with Bart’s Brewskies to provide him with 1,000 going-out-of-business flyers, but the work will not be performed until January of the following year, where will this transaction be recorded on the December 31 balance sheet?
  1. In the owner’s equity section
  2. In the liabilities section
  3. In the assets section
  4. In the unearned income section
  5. It will not appear on the balance sheet
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