Keep Calm and Read These Financial Accounting Exam Questions and Answers


Sample Financial Accounting Exam Questions and Answers for Students

Good test scores are attainable if you adopt effective study techniques and use free financial accounting exam questions and answers online. Pre test sample are widely acceptable study resources in order to get an actual glimpse of what actual test will be like. Aside from familiarizing yourself with the exam format, financial accounting exam questions can help you practice and extend your knowledge. For the best online exam preparation, use these sample financial accounting exam questions and answers:

  1. One criterion for a capital lease is that the term of the lease must equal a minimum percentage of the leased property’s economic life at the inception of the lease. The minimum percentage is:
  1. 75% (Answer)
  2. 41%
  3. 50%
  4. 90%
  1. What type of bond matures at different points in time?
  1. Bearer bonds
  2. Term bonds
  1. Serial bonds (Answer)
  1. Unsecured bonds
  1. Reportable segments are not required to disclose which of the following:
  1. Intersegment sales
  2. Capital expenditures
  3. Amortization expense
  4. Long-term debt (Answer)
  1. Extraordinary items are:
  1. reported above the line
  2. unusual and infrequent (Answer)
  3. unusual or infrequent.
  4. reported on the balance sheet.
  1. Conceptually, interim financial statements can be described as emphasizing
  1. Timeliness over reliability (Answer)
  2. Reliability over relevance.
  3. Relevance over comparability.
  4. Comparability over neutrality.
  1. According to the FASB Conceptual Framework, which of the following relates to both relevance and reliability?

Consistency Verifiability

  1. Yes Yes
  2. No No
  3. Yes No (Answer)
  4. No Yes
  1. Gar Co. factored its receivables without recourse with Ross Bank. Gar received cash as a result of this transaction, which is best described as a:
  1. Sale of Gar’s accounts receivable to Ross, with the risk of uncollectible accounts retained by Gar.
  2. Sale of Gar’s accounts receivable to Ross, with the risk of uncollectible accounts transferred to Ross. (Answer)
  3. Loan from Ross collateralized by Gar’s accounts receivable.
  4. Loan from Ross to be repaid by the proceeds from Gar’s accounts receivables.
  1. The following computations were made from Clay Co.’s 2009 books: What was the number of days in Clay’s 2009 operating cycle?

Number of days’ sales in Inventory: 61

Number of days’ sales in trade accounts receivable: 33

  1. 33
  2. 47
  3. 61
  4. 94 (Answer)
  1. An entity purchased shares of its $100 par stock for retirement that was originally issued at $200 per share. The entity repurchased the stock for $250 per share. Upon retirement, which of the following accounts would NOT be affected?
  1. Paid-in capital
  2. Common stock
  3. Treasury stock (Answer)
  4. Retained earnings
  1. St. Petersburg Glass Company plans to issue the following 10-year bond:

PV: $25,325

FV: $20,000

Annual payments: $2,000

Using straight-line amortization calculate the bond interest expense for year 1 for St. Petersburg Glass Company?

  1. $532.50
  2. $1,467.50 (Answer)
  3. $4,792.50
  4. Bond interest expense cannot be amortized

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Let Us Try Free Practice Test of Financial Accounting Exam Questions

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  1. Sleep, food and coffee are essentials when studying and during taking the test.
  2. You can organize group studies as this will allow you to ask and answer questions. But if you work well with studying alone, skip large groups and just do it yourself.
  3. Keep your study place clean and organize. Remove distractions and do not forget to always take adequate study breaks.
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