Robert Half Assessment Test Core Accounting Principles 2

Question 1

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 from the customer

Answer

The invoice is mailed to the customer

Answer

Management approves the transaction

Question 2

Which financial statement shows a company's financial position at a specific point in time?

Accepted Answer

Balance sheet

Answer

Income statement

Answer

Statement of cash flows

Answer

Statement of retained earnings

Question 3

A company purchased equipment for $50,000 cash. How does this affect the accounting equation?

Accepted Answer

One asset increases $50,000; another asset decreases $50,000

Answer

Assets increase $50,000; liabilities increase $50,000

Answer

Assets increase $50,000; equity decreases $50,000

Answer

Assets decrease $50,000; equity decreases $50,000

Question 4

The matching principle requires that:

Accepted Answer

Expenses are recorded in the same period as the revenue they helped generate

Answer

Assets equal liabilities plus equity

Answer

Revenue equals expenses in each period

Answer

Cash inflows match cash outflows

Question 5

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

Accepted Answer

Accumulated depreciation

Answer

Accounts payable

Answer

Unearned revenue

Answer

Notes payable

Question 6

When a company records depreciation expense, which accounts are affected?

Accepted Answer

Depreciation expense increases; accumulated depreciation increases

Answer

Cash decreases; accumulated depreciation increases

Answer

Fixed assets decrease; cash decreases

Answer

Depreciation expense increases; fixed assets increase

Question 7

If beginning inventory is $10,000, purchases are $40,000, and ending inventory is $8,000, what is cost of goods sold?

Accepted Answer

$42,000

Answer

$38,000

Answer

$48,000

Answer

$32,000