Robert Half Assessment Test Core Accounting Principles 3

Question 1

Which inventory costing method assumes the most recently purchased items are sold first?

Accepted Answer

LIFO

Answer

LIFO (Last-In, First-Out) assumes the newest inventory items are sold before older ones.

Question 2

A $1,200 insurance premium was paid on October 1 for 12 months of coverage. How much is prepaid insurance on December 31?

Accepted Answer

$900

Answer

Three months have expired (Oct–Dec), leaving 9 months prepaid: $1,200 × 9/12 = $900.

Question 3

Which of the following transactions increases both total assets and total liabilities?

Accepted Answer

Borrowing money from a bank

Answer

Borrowing from a bank increases cash (asset) and increases notes payable (liability) by equal amounts.

Question 4

Under GAAP, intangible assets with indefinite useful lives (like goodwill) are:

Accepted Answer

Tested annually for impairment instead of amortized

Answer

ASC 350 requires goodwill and other indefinite-lived intangibles to be tested for impairment at least annually rather than amortized.

Question 5

A credit entry to Accounts Receivable indicates:

Accepted Answer

A customer paid their outstanding balance

Answer

Crediting Accounts Receivable reduces the balance, reflecting that a customer has paid what they owed.

Robert Half Assessment Test Practice Test