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The NACPB-ACCOUNTING-ANALYSIS exam has 50 questions and runs 2 hours.
These 10 free NACPB-ACCOUNTING-ANALYSIS questions are organized by exam domain, so you can see how each part of the Accounting Analysis Certification blueprint is tested. Reveal the answer and explanation under each question.
The owner of a sole proprietorship pays a personal residential utility bill from the business bank account. The home has no business use, and the owner will not reimburse the business. For the business's financial records, this payment is:
Correct answer: C - An owner's withdrawal that reduces equity rather than profit.
A $4,600 bank deposit settles a customer invoice whose revenue was correctly recognized last month. The receipt was posted as a debit to Cash and a credit to Service Revenue, leaving the customer's receivable open. Choose the correcting entry that fixes the error without recording the deposit again.
Correct answer: A - Debit Service Revenue $4,600; credit Accounts Receivable $4,600.
On December 1, a dealer receives $12,000 for equipment and 12 months of support beginning that day. The equipment and support are distinct performance obligations with standalone selling prices of $12,000 and $4,000, respectively. Control of the equipment transfers immediately; support is provided evenly each month. No evidence assigns the bundle discount specifically to either obligation. Under U.S. GAAP, how much revenue belongs in the December income statement?
Correct answer: C - $9,250
The controller is reviewing a post-closing trial balance. Which remaining balance indicates that an additional closing entry is needed?
Correct answer: A - Sales Discounts with a debit balance.
A customer keeps a delivery of desks but negotiates a $300 price allowance for cosmetic damage. The retailer uses perpetual inventory and had correctly recorded the original sale and the desks' cost. It now debits Sales Returns and Allowances and credits Accounts Receivable for $300. Regarding Inventory and Cost of Goods Sold, the retailer should:
Correct answer: D - Leave Inventory and Cost of Goods Sold unchanged.
Minutes before the wire cutoff, an accounts payable clerk receives an email from a supplier's usual address requesting that an approved $84,000 payment go to a new bank account. The message supplies a new callback number. The purchase order, receiving report, and invoice agree. What should the clerk do before releasing the wire?
Correct answer: B - Hold this wire and verify the change through the vendor's previously established phone number.
A retailer using periodic inventory discovers that last year's gross profit was overstated and this year's gross profit is understated by the same amount. Sales and purchases are correctly recorded in both years. This year's ending inventory is correct, and no correction of the prior year's inventory has been posted. Which mistake best explains the two-year pattern?
Correct answer: A - The same owned goods were counted twice in last year's ending inventory.
At January 1, a machine has an original cost of $90,000 and accumulated depreciation of $30,000. Its original straight-line estimates were an eight-year life and a $10,000 residual value. New operating information now supports four more years of use and a $4,000 residual value. Prior depreciation was correctly recorded, and there is no impairment. What annual straight-line charge should be used from this year forward?
Correct answer: B - $14,000
Counsel concludes that a loss from a contract claim existing at December 31 is probable. The reasonably estimated settlement range is $60,000 to $100,000, with no amount a better estimate than another. Insurance recoveries are not involved. Which year-end treatment is required under U.S. GAAP?
Correct answer: C - Accrue $60,000 and disclose the range of possible loss.
A wholesaler's current ratio rises from 2.0 to 2.5 immediately after a single transaction, but its working capital in dollars does not change. Which transaction could produce both results?
Correct answer: D - Pay an existing trade payable in cash.
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