Robert Half Assessment Test Accounting 2

Question 1

A company purchases equipment for $50,000 with a salvage value of $5,000 and a useful life of 9 years. What is the annual straight-line depreciation?

Accepted Answer

$5,000

Answer

$5,556

Answer

$4,500

Answer

$6,250

Question 2

Which financial statement shows a company's revenues and expenses over a specific period?

Accepted Answer

Income Statement

Answer

Balance Sheet

Answer

Statement of Cash Flows

Answer

Statement of Retained Earnings

Question 3

Under the accrual basis of accounting, revenue is recognized when:

Accepted Answer

It is earned, regardless of when cash is received

Answer

Cash is received

Answer

The invoice is mailed

Answer

The customer places an order

Question 4

What does a credit entry to Accounts Receivable indicate?

Accepted Answer

A customer payment received

Answer

A new sale on account

Answer

An increase in revenue

Answer

A purchase return

Question 5

The FIFO inventory method assumes that:

Accepted Answer

The oldest inventory items are sold first

Answer

The most recently purchased items are sold first

Answer

Average cost items are sold first

Answer

Items are sold in random order

Question 6

Which of the following is an example of a contra asset account?

Accepted Answer

Accumulated Depreciation

Answer

Accounts Payable

Answer

Unearned Revenue

Answer

Common Stock

Question 7

If total assets are $200,000 and total liabilities are $75,000, what is stockholders' equity?

Accepted Answer

$125,000

Answer

$275,000

Answer

$75,000

Answer

$200,000