Page | 1
ACC 255 NAU FINAL EXAM 2026 LATEST
QUESTIONS AND ANSWERS| ACE YOUR
GRADES.
Which of the following statements about a periodic inventory
system is TRUE
A. companies determine cost of good sold only at the end of
accounting period
B. Companies continously maintain detailed records of the cost of
each inventory purchase and sale
C. The increased use of computeerized systems has increased
the use of the periodic system
D. the periodic system provides better control over inventories
than a perpetual system - correct answer -A. companies
determine cost of good sold only at the end of accounting period
On what amount is a sales discount based
A. Invoice price less discount
B. Invoice price less returns and allowances
C. Invoice price plus freight in
D. Invoice price plus freight out - correct answer -B. Invoice price
less returns and allowances
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The Findley toyota car dealership would most likely use which of
the following inventory costing methods
A. FIFO
B. LIFO
C.Average cost
D. Specific identification - correct answer -D. Specific
identification
Which Statement is CORRECT regarding inventory costing
methods during periods of rising prices?
A. FIFO produces higher net income than LIFO
B. FIFO produces lower income taxes than LIFO
C. LIFO produces lower cost of goods sold than FIFO
D. LIFO produces higher inventory than FIFO - correct answer -
A. FIFO produces higher net income than LIFO
Under the allowance method of accounting for bad debts, why
must the amount for uncollectable accounts be estimated at the
end of the accounting period
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A. To determine the age of accounts receivable balance
B. To allow the collection department so schedule work for the
next accounting period
C. internal Revenue service tax rules require the company to
make the estimate
D. To match bad debit expense to the period in which the related
credit sales are made - correct answer -D. To match bad debit
expense to the period in which the related credit sales are made
At what value are accounts recivable reported on the balance
sheet
A. Cash relizable value
B. Fair Market value
C. Present Value
D. Maturity value - correct answer -A. Cash relizable value
Which statement is true about reporting recivable on the balance
sheet ?
A. Bad debits Expense and allowance for Doubtful Accounts are
both shown as deduction from Accounts receivable in the Assets
section
B. Bad Debit Expenses is shown as deduction from accounts
Receivable in the Assets section
ACC 255 NAU FINAL EXAM 2026 LATEST
QUESTIONS AND ANSWERS| ACE YOUR
GRADES.
Which of the following statements about a periodic inventory
system is TRUE
A. companies determine cost of good sold only at the end of
accounting period
B. Companies continously maintain detailed records of the cost of
each inventory purchase and sale
C. The increased use of computeerized systems has increased
the use of the periodic system
D. the periodic system provides better control over inventories
than a perpetual system - correct answer -A. companies
determine cost of good sold only at the end of accounting period
On what amount is a sales discount based
A. Invoice price less discount
B. Invoice price less returns and allowances
C. Invoice price plus freight in
D. Invoice price plus freight out - correct answer -B. Invoice price
less returns and allowances
, Page | 2
The Findley toyota car dealership would most likely use which of
the following inventory costing methods
A. FIFO
B. LIFO
C.Average cost
D. Specific identification - correct answer -D. Specific
identification
Which Statement is CORRECT regarding inventory costing
methods during periods of rising prices?
A. FIFO produces higher net income than LIFO
B. FIFO produces lower income taxes than LIFO
C. LIFO produces lower cost of goods sold than FIFO
D. LIFO produces higher inventory than FIFO - correct answer -
A. FIFO produces higher net income than LIFO
Under the allowance method of accounting for bad debts, why
must the amount for uncollectable accounts be estimated at the
end of the accounting period
, Page | 3
A. To determine the age of accounts receivable balance
B. To allow the collection department so schedule work for the
next accounting period
C. internal Revenue service tax rules require the company to
make the estimate
D. To match bad debit expense to the period in which the related
credit sales are made - correct answer -D. To match bad debit
expense to the period in which the related credit sales are made
At what value are accounts recivable reported on the balance
sheet
A. Cash relizable value
B. Fair Market value
C. Present Value
D. Maturity value - correct answer -A. Cash relizable value
Which statement is true about reporting recivable on the balance
sheet ?
A. Bad debits Expense and allowance for Doubtful Accounts are
both shown as deduction from Accounts receivable in the Assets
section
B. Bad Debit Expenses is shown as deduction from accounts
Receivable in the Assets section
