AAMI ACCOUNTING 2 COMPREHENSIVE REVIEW 2026 PRACTICE PAPER SOLUTIONS MASTER FILE

AAMI ACCOUNTING 2 COMPREHENSIVE
REVIEW 2026 PRACTICE PAPER
SOLUTIONS MASTER FILE


◉ Another term for sales. Answer: Revenue


◉ Sales - Cost of Goods Sold. Answer: Gross Profit


◉ In an inflationary period what method of inventory valuation
would lower profits. Answer: LIFO


◉ In an inflationary period what method of inventory valuation
would increase profits. Answer: FIFO


◉ In a deflationary period what method of inventory valuation
would lower profits. Answer: FIFO


◉ In a deflationary period what method of inventory valuation
would higher profits. Answer: LIFO

,◉ What method of inventory valuation would we use as funeral
directors. Answer: Specific Identification


◉ Sales-CGS-All other operating expenses. Answer: Net Profit


◉ Total cost/Total units available for sale. Answer: Weighted
Average


◉ Best method of inventory valuation. Answer: Specific
Identification


◉ Revenue-Expenses. Answer: Net Income


◉ What method on inventory valuation raises your taxable income.
Answer: FIFO


◉ What method of inventory valuation lowers your taxable income.
Answer: LIFO


◉ What are the 4 methods of inventory valuation. Answer: Specific
Identification
Weighted Average
FIFO

, LIFO


◉ Method used to determine the CGS for merchandise that is bought
for resale in a retail or merchandising business. Answer: Inventory
valuation


◉ Beginning Inventory + Net purchases. Answer: Cost of goods
available for sale


◉ Beginning inventory + Purchases - Ending inventory. Answer: Cost
of goods sold


◉ The employees' withholding certificate is referred to as. Answer:
W-4


◉ The wage and tax statement is. Answer: W-2


◉ Income before any payroll deductions is referred to as. Answer:
Gross Pay


◉ Social security is financed by. Answer: FICA


◉ FICA stands for. Answer: Federal Insurance Contributions Act