Exam122

Welcome to Your Builder's Guide to Accounting Free Supplemental Exam

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Exam Details

Time Limit
60 minutes

Questions
30 randomly selected

Question Bank
Over 700 unique questions

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Real scenarios you'll encounter on exam day

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1 / 30

The Imprest system requires replenishment when:

A) There is no money left

B) Money is stolen

C) Transactions are complete and receipts are matched

D) The fiscal year ends

2 / 30

If a business switches from completed contract to percentage of completion, it will likely:

A) Show revenue earlier in projects

B) Show less revenue overall

C) Increase expenses without revenue

D) Defer all income

3 / 30

In the percentage of completion method, income is recognized:

A) Only at project completion

B) Based on the portion of the project completed each year

C) Only when all payments are received

D) When the invoice is sent

4 / 30

Combined yield of work refers to:

A) The maximum possible production at minimum cost

B) The overall productivity and output of operations

C) Only labor efficiency

D) The combination of raw material costs

5 / 30

Cash received from borrowing money would appear under which section of the cash flow statement?

A) Operating activities

B) Investing activities

C) Financing activities

D) Not listed on the statement

6 / 30

Organizing a business often includes:

A) Only buying inventory

B) Initial legal, licensing, and professional costs

C) Payroll only

D) Depreciation schedules

7 / 30

Comparative period statements are useful for:

A) Showing financial data across multiple periods

B) Preparing payroll

C) Recording daily expenses

D) Creating invoices

8 / 30

Job progress plotting helps manage cash flow.

A) True

B) False

9 / 30

Form 941 is required for:

A) Reporting sales tax

B) Reporting quarterly federal payroll taxes

C) Filing state income taxes

D) Reporting property tax payments

10 / 30

Finished goods are items ready to be sold to customers.

A) True

B) False

11 / 30

A loan is best described as:

A) An asset owned by the borrower

B) A transfer of ownership in a company

C) A sum of money borrowed that must be repaid with interest

D) An investment in equity

12 / 30

Prepaid rent is an asset that becomes an expense over time.

A) True

B) False

13 / 30

Setting up a reserve for bad debts is an example of:

A) Matching revenues and expenses in the correct period

B) Overstating income

C) Ignoring revenue recognition rules

D) Writing off inventory

14 / 30

Accrual accounting provides a more accurate picture of:

A) Cash position only

B) Financial performance over a period

C) Tax liability reduction

D) Payable discounts

15 / 30

The main purpose of preparing a cash budget is to:

A) Decrease current liabilities

B) Forecast cash inflows and outflows

C) Calculate taxes

D) Determine future equity investments

16 / 30

A company's gross profit ratio mainly assesses:

A) Net profit margins

B) How well it controls the cost of goods sold

C) Its cash collections

D) Its ability to hire new workers

17 / 30

The Current Ratio formula is:

A) Assets ÷ Liabilities

B) Current Assets ÷ Current Liabilities

C) Net Income ÷ Total Assets

D) Cash ÷ Sales

18 / 30

Deferred income is recorded as revenue immediately when cash is received.

A) True

B) False

19 / 30

Small Business Administration loans must always be fully repaid.

A) True

B) False

20 / 30

If a cost overrun is discovered, the best response is to:

A) Notify management immediately

B) Ignore it and continue working

C) Postpone the project indefinitely

D) Overbill the client

21 / 30

Planning for profits involves:

A) Randomly increasing prices

B) Careful planning of expected revenues and costs

C) Ignoring market conditions

D) Reducing payroll significantly

22 / 30

A common method for estimating bad debts is:

A) Based on percentage of total sales

B) Based only on inventory levels

C) Based on tax refund amounts

D) Based on gross profit

23 / 30

Net profit is recorded after:

A) Revenue is earned

B) Expenses are subtracted

C) Inventory is purchased

D) Salaries are increased

24 / 30

Section 179 allows businesses to:

A) Delay depreciation until asset sale

B) Immediately expense qualifying purchases up to a limit

C) Ignore depreciation schedules

D) Only depreciate intangible assets

25 / 30

The source and application of funds method is useful because it:

A) Hides financial problems

B) Traces where cash comes from and goes

C) Helps eliminate fixed costs

D) Sets employee bonuses

26 / 30

You bought machinery for $75,000, expect it to last 15 years, and estimate a salvage value of $5,000. Using straight-line depreciation, what is your annual depreciation expense? Where can you find this formula?

A) $4,666.67

B) $5,000.00

C) $5,333.33

D) $6,000.00

27 / 30

Bad debt reserves reduce total current assets on the balance sheet.

A) True

B) False

28 / 30

In the chart of accounts, each account is typically assigned:

A) A project code

B) A number or code for easy reference

C) A random letter

D) A sales region

29 / 30

Which account would NOT typically be included in the sales journal?

A) Customer accounts receivable

B) Sales revenue

C) Cash account

D) Discounts given

30 / 30

Ratio analysis is especially important for:

A) Financial decision-making

B) Employee scheduling

C) Website design

D) Vehicle maintenance

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Welcome to Your Builder's Guide to Accounting Free Supplemental Exam

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