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ACCT 5312 EXAM 2 LATEST 2026-2027 ACTUAL EXAM WITH
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (100%
VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED|| ||BRANDNEW!!!||
1. The principal reason for converting a customer's account
receivable to a note receivable is:
A. the note receivable earns interest and the account receivable
does not.
B. the receivable is less likely to have to be written off as
uncollectible.
C. working capital is immediately increased.
D. the customer is more likely to continue purchasing the
company's products. - ANSWER-the note receivable earns
interest and the account receivable does not.
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2. The inventory cost flow assumption describes the flow of
product cost:
A. from the warehouse to the customer.
B. into the asset (inventory) account and out to the expense (cost
of goods sold) account.
C. into the revenue (sales) account and out to the expense (cost
of goods sold) account.
D. into the asset (inventory) account and out to the revenue
(sales) account. - ANSWER-into the asset (inventory) account
and out to the expense (cost of goods sold) account.
3. One inventory cost flow assumption will result in different cost
of goods sold from another inventory cost flow assumption only if:
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A. inventory quantities change from the beginning to end of the
year.
B. a new product is added to inventory during the year.
C. the cost of inventory items changes during the year.
D. price levels do not change during the year. - ANSWER-the cost
of inventory items changes during the year.
4. When costs are rising over time:
A. LIFO results in higher profits that FIFO.
B. Cost of goods sold using the weighted average method will be
greater than LIFO cost of goods sold.
C. ending inventory balances will be greater under LIFO.
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D. FIFO results in higher profits than LIFO. - ANSWER-FIFO
results in higher profits than LIFO.
5. In an inflationary economic environment, the selling price set
for a firm's products will:
A. not be affected by the cost flow assumption used.
B. be higher if LIFO is used than if FIFO is used.
C. be higher if FIFO is used than if LIFO is used.
D. be derived from the weighted average cost of inventory. -
ANSWER-not be affected by the cost flow assumption used.
ACCT 5312 EXAM 2 LATEST 2026-2027 ACTUAL EXAM WITH
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (100%
VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED|| ||BRANDNEW!!!||
1. The principal reason for converting a customer's account
receivable to a note receivable is:
A. the note receivable earns interest and the account receivable
does not.
B. the receivable is less likely to have to be written off as
uncollectible.
C. working capital is immediately increased.
D. the customer is more likely to continue purchasing the
company's products. - ANSWER-the note receivable earns
interest and the account receivable does not.
,2|Page
2. The inventory cost flow assumption describes the flow of
product cost:
A. from the warehouse to the customer.
B. into the asset (inventory) account and out to the expense (cost
of goods sold) account.
C. into the revenue (sales) account and out to the expense (cost
of goods sold) account.
D. into the asset (inventory) account and out to the revenue
(sales) account. - ANSWER-into the asset (inventory) account
and out to the expense (cost of goods sold) account.
3. One inventory cost flow assumption will result in different cost
of goods sold from another inventory cost flow assumption only if:
,3|Page
A. inventory quantities change from the beginning to end of the
year.
B. a new product is added to inventory during the year.
C. the cost of inventory items changes during the year.
D. price levels do not change during the year. - ANSWER-the cost
of inventory items changes during the year.
4. When costs are rising over time:
A. LIFO results in higher profits that FIFO.
B. Cost of goods sold using the weighted average method will be
greater than LIFO cost of goods sold.
C. ending inventory balances will be greater under LIFO.
, 4|Page
D. FIFO results in higher profits than LIFO. - ANSWER-FIFO
results in higher profits than LIFO.
5. In an inflationary economic environment, the selling price set
for a firm's products will:
A. not be affected by the cost flow assumption used.
B. be higher if LIFO is used than if FIFO is used.
C. be higher if FIFO is used than if LIFO is used.
D. be derived from the weighted average cost of inventory. -
ANSWER-not be affected by the cost flow assumption used.
