Accounting Assessment Test Questions and Answers [2024]

The correct answer is (D).

The double declining balance method is a technique of accelerated depreciation in which the majority of the depreciation expense is recognized during the first few years of the asset’s useful life. The formula for the double declining balance method of depreciation is

Book value at the beginning of the year * Straight Line rate * 2
Book Value = Cost – Accumulated Depreciation
Straight Line Rate = 1 / Useful Life (1/5 = 0.2)
Depreciation year 1 = $60,000 * 0.2 * 2 = 24,000
Depreciation year 2 = ($60,000 – $24,000) * 0.2 * 2 = $14,400

The correct answer is (A).

The term 2/15 means that the customer is entitled to a 2% discount if the liability is paid in full 15 days from the invoice date.

Thus, if Delta pays its accounts payable to Beta Inc. within 15 days of the invoice date, its payment would only amount to $11,760 instead of $12,000. This payment term is used to encourage early settlement of the account.

The correct answer is (B).

Activity ratios evaluate the efficiency of the operations of a business. Liquidity and solvency ratios explain the financial position of a business, while profitability ratios measure the ability of a business to earn profit for its owners.

The correct answer is A.

The first step to approaching tables with missing values is to analyze the descriptions given and identify the relationships between them.

We are given three different types of liquors and two brands of each.

VOL (oz) refers to the number of ounces in a bottle. 

SALES PRICE refers to the price the store sells a bottle for. 

MONTHLY BEGINNING refers to the number of bottles on stock at the beginning of the month.

MONTHLY RESTOCK refers to the number of bottles the store purchases, or adds to its stock, throughout the month. 

MONTHLY SALES refers to the number of bottles the store sold throughout the month. To keep track of the number of bottles in stock, this number will be subtracted from the monthly beginning. 

MONTHLY ENDING refers to the number of bottles in stock at the end of the month.

Based on the information above we can formulate the following equation: 

MONTHLY BEGINNING + MONTHLY RESTOCK - MONTHLY SALES = MONTHLY ENDING

We can verify that this equation is correct by checking with the first row where all of the values are given:

4 + 5 - 3 = 6

We can find the value of (I), which is the MONTHLY RESTOCK of aroux, by placing the values given into the equation above:

17 + MR - 11 = 6                          Subtract 11 from 17:

6 + MR = 6                                   Subtract 6 from each side:

MR = 0 

The correct answer is A.

The accounting equation is: Assets = Liabilities + Owner’s Equity. We can isolate Owner’s Equity by subtracting Liabilities from both sides and see that Owner’s Equity is the difference between Assets and Liabilities.