ACCT 211 LIBERTY UNIVERSITY CHAPTER 1
TO 3 COMPREHENSIVE SCRIPT 2026
COMPLETE QUESTIONS AND SOLUTIONS
GRADED A+
⩥ Average inventory equation. Answer: Beginning inventory + Ending
inventory / 2
⩥ Effects of ending inventory being overstated. Answer: - Cost of Goods
sold overstated, income before taxes overstated, Beginning inventory of
next period overstated
⩥ Effects of ending inventory being understated. Answer: Cost of goods
sold overstated, income before taxes understated, beginning inventory of
next period understated
⩥ Effects of beginning inventory being overstated. Answer: Cost of
goods sold overstated, income before taxes understated
⩥ Effects of beginning inventory being understated. Answer: Cost of
goods sold understated, income before taxes overstated
⩥ Accelerated depreciation rate equation. Answer: 2 / Estimated useful
life in years
, ⩥ Yearly depreciation expense equation. Answer: Book value *
Accelerated depreciation rate
⩥ Depletion rate per unit (Activity method) equation. Answer: (Cost of
natural resources-Salvage value)/Estimated units of output
⩥ Depletion rate per year (Activity method) equation. Answer:
Depletion per unit * Units of output used
⩥ 3 Possibilities when we sell an asset. Answer: 1. Gain- cash collected
is greater than the book value
2. Loss- Cash collected is less than the book value
3. Breakeven- Cash collected equals the book value
⩥ Gain or loss equation. Answer: Cash from sale - Book value
⩥ Book value equation. Answer: Initial cost - Accumulated depreciation
⩥ Only form of business that sells stock. Answer: Corporations
⩥ Outstanding shares. Answer: Shares that are sold and owned
TO 3 COMPREHENSIVE SCRIPT 2026
COMPLETE QUESTIONS AND SOLUTIONS
GRADED A+
⩥ Average inventory equation. Answer: Beginning inventory + Ending
inventory / 2
⩥ Effects of ending inventory being overstated. Answer: - Cost of Goods
sold overstated, income before taxes overstated, Beginning inventory of
next period overstated
⩥ Effects of ending inventory being understated. Answer: Cost of goods
sold overstated, income before taxes understated, beginning inventory of
next period understated
⩥ Effects of beginning inventory being overstated. Answer: Cost of
goods sold overstated, income before taxes understated
⩥ Effects of beginning inventory being understated. Answer: Cost of
goods sold understated, income before taxes overstated
⩥ Accelerated depreciation rate equation. Answer: 2 / Estimated useful
life in years
, ⩥ Yearly depreciation expense equation. Answer: Book value *
Accelerated depreciation rate
⩥ Depletion rate per unit (Activity method) equation. Answer: (Cost of
natural resources-Salvage value)/Estimated units of output
⩥ Depletion rate per year (Activity method) equation. Answer:
Depletion per unit * Units of output used
⩥ 3 Possibilities when we sell an asset. Answer: 1. Gain- cash collected
is greater than the book value
2. Loss- Cash collected is less than the book value
3. Breakeven- Cash collected equals the book value
⩥ Gain or loss equation. Answer: Cash from sale - Book value
⩥ Book value equation. Answer: Initial cost - Accumulated depreciation
⩥ Only form of business that sells stock. Answer: Corporations
⩥ Outstanding shares. Answer: Shares that are sold and owned
