TCC ACCT 2301 EXAM 2 WITH ALL CORRECT & 100%
VERIFIED ANSWERS |ACTUAL COMPLETE EXAM |
ALREADY GRADED A+
FOB shipping destination ✔Correct Answer-- where ownership/title passes
- seller typically pays the freight
FOB shipping point ✔Correct Answer-- whoever has ownership/title pays the freight
- buyer typically pays the freight
consistency principle ✔Correct Answer-use the same accounting procedures from year to
year
disclosure principle ✔Correct Answer-disclosure your accounting method (cash basis, accrual
basis, inventory method)
materiality concept ✔Correct Answer-company must perform strictly proper accounting ONLY
for material (significant) items
conservatism ✔Correct Answer-never overstate assets or revenues
LIFO ✔Correct Answer-last units are assumed to be the first units sold
FIFO ✔Correct Answer-first units to come in are assumed to be the first units sold
weighted average ✔Correct Answer-taking cost of goods available for sale/units available for
sale
specific identification method ✔Correct Answer-uses specific cost of each unit of inventory to
determine ending inventory and COGS (automobiles, jewels, real estate)
lower of cost or market rule ✔Correct Answer-accounting principle of reporting inventory at
its replacement cost (market) if replacement cost has declined below the inventory's original
cost, regardless of the cause
gross profit ✔Correct Answer-revenue - cogs
per unit cost ✔Correct Answer-cogs/total units available for sale
what do internal controls accomplish? ✔Correct Answer-- safeguard assets
- encourage employees to follow company policies
, - promote operational efficiency
- ensure accurate, reliable accounting records
internal control report ✔Correct Answer-report by management describing its responsibility
fro and the adequacy of internal controls over financial reporting
components of internal control ✔Correct Answer-- control procedures
- risk assessment
- information system
- monitoring of controls
- environment (tone at the top)
internal control procedures ✔Correct Answer-- competent, reliable, and ethical personnel
- assignment of responsibilities
- separation of duties
- audits
- documents
- electronic devices, safes, locks, mandatory vacation
- e-commerce
limitations of internal control ✔Correct Answer-- cost cannot exceed the benefit
- collusion
collusion ✔Correct Answer-2 or more people working together to circumvent internal controls
and defraud a company
controls over cash receipts ✔Correct Answer-- over the counter
- through the mail
- restrictive endorsement "for deposit only"
controls over cash payments ✔Correct Answer-- good separation of duties between
operations of the business and writing checks for cash payments should exist
- many companies use technology to make secure payments
petty cash ✔Correct Answer-fund containing a small amount of cash that is used to pay for
minor expenditures
petty cash custodian ✔Correct Answer-- establish (journal entry)
- make payments out of it
- replenish at the end of each month (journal entry)
balance per books ✔Correct Answer-- (-) bank service fee (journal entry)
- (+) collections by bank (journal entry)
VERIFIED ANSWERS |ACTUAL COMPLETE EXAM |
ALREADY GRADED A+
FOB shipping destination ✔Correct Answer-- where ownership/title passes
- seller typically pays the freight
FOB shipping point ✔Correct Answer-- whoever has ownership/title pays the freight
- buyer typically pays the freight
consistency principle ✔Correct Answer-use the same accounting procedures from year to
year
disclosure principle ✔Correct Answer-disclosure your accounting method (cash basis, accrual
basis, inventory method)
materiality concept ✔Correct Answer-company must perform strictly proper accounting ONLY
for material (significant) items
conservatism ✔Correct Answer-never overstate assets or revenues
LIFO ✔Correct Answer-last units are assumed to be the first units sold
FIFO ✔Correct Answer-first units to come in are assumed to be the first units sold
weighted average ✔Correct Answer-taking cost of goods available for sale/units available for
sale
specific identification method ✔Correct Answer-uses specific cost of each unit of inventory to
determine ending inventory and COGS (automobiles, jewels, real estate)
lower of cost or market rule ✔Correct Answer-accounting principle of reporting inventory at
its replacement cost (market) if replacement cost has declined below the inventory's original
cost, regardless of the cause
gross profit ✔Correct Answer-revenue - cogs
per unit cost ✔Correct Answer-cogs/total units available for sale
what do internal controls accomplish? ✔Correct Answer-- safeguard assets
- encourage employees to follow company policies
, - promote operational efficiency
- ensure accurate, reliable accounting records
internal control report ✔Correct Answer-report by management describing its responsibility
fro and the adequacy of internal controls over financial reporting
components of internal control ✔Correct Answer-- control procedures
- risk assessment
- information system
- monitoring of controls
- environment (tone at the top)
internal control procedures ✔Correct Answer-- competent, reliable, and ethical personnel
- assignment of responsibilities
- separation of duties
- audits
- documents
- electronic devices, safes, locks, mandatory vacation
- e-commerce
limitations of internal control ✔Correct Answer-- cost cannot exceed the benefit
- collusion
collusion ✔Correct Answer-2 or more people working together to circumvent internal controls
and defraud a company
controls over cash receipts ✔Correct Answer-- over the counter
- through the mail
- restrictive endorsement "for deposit only"
controls over cash payments ✔Correct Answer-- good separation of duties between
operations of the business and writing checks for cash payments should exist
- many companies use technology to make secure payments
petty cash ✔Correct Answer-fund containing a small amount of cash that is used to pay for
minor expenditures
petty cash custodian ✔Correct Answer-- establish (journal entry)
- make payments out of it
- replenish at the end of each month (journal entry)
balance per books ✔Correct Answer-- (-) bank service fee (journal entry)
- (+) collections by bank (journal entry)
