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Financial Accounting

The following sample questions do not appear on an actual CLEP examination. They are intended to give potential test-takers an indication of the format and difficulty level of the examination and provide content for practice and review. For more sample questions and information about the test, see the CLEP Official Study Guide.

Question 1 of 7

ONECO gives a one-year warranty on all of its equipment. In January, a customer placed an order for a piece of equipment. The equipment was delivered and billed in February. The customer remitted half of the cash due in March and the other half in April. According to the matching principle of accounting, in which month should ONECO report estimated warranty expense related to the sale?

  • A.

    January

  • B.

    February

  • C.

    March

  • D.

    April

  • E.

    December

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