ACCT EXAM 2
1. An item of merchandise that was sold for $600 cash by a business
using the perpetual inventory system. The item cost $400. After the
sale entry has been recorded, what additional entry would be required?
A) a debit to sales and credit to inventory for $600✔️
B) a debit to inventory and a credit to cost of goods sold for $400
C) A debit to cost of goods sold and a credit to purchases for $400
D) A debit to cost of goods sold and a credit to inventor
2. What is NOT affected by the choice of an inventory costing method
(that is, between FIFO, LIFO, and weighted average)?
A) cost of goods sold
B) net sales✔️
C) gross profit
D) net income
3. Mr. Goeddel deposits $500 in his savings account at the end of every
month for three years. The account's annual interest rate is 6%. To
determine the balance in the account after three years, he should use:
A) i = 0.5%✔️
B) n = 3.
C) C Table B.2, Future Value of 1
D) All of the above
4. When a firm writes off a bad debt under the allowance method of
accounting for bad debts, what occurs?
A) expenses will increase
B) total assets remain the same✔️
1. An item of merchandise that was sold for $600 cash by a business
using the perpetual inventory system. The item cost $400. After the
sale entry has been recorded, what additional entry would be required?
A) a debit to sales and credit to inventory for $600✔️
B) a debit to inventory and a credit to cost of goods sold for $400
C) A debit to cost of goods sold and a credit to purchases for $400
D) A debit to cost of goods sold and a credit to inventor
2. What is NOT affected by the choice of an inventory costing method
(that is, between FIFO, LIFO, and weighted average)?
A) cost of goods sold
B) net sales✔️
C) gross profit
D) net income
3. Mr. Goeddel deposits $500 in his savings account at the end of every
month for three years. The account's annual interest rate is 6%. To
determine the balance in the account after three years, he should use:
A) i = 0.5%✔️
B) n = 3.
C) C Table B.2, Future Value of 1
D) All of the above
4. When a firm writes off a bad debt under the allowance method of
accounting for bad debts, what occurs?
A) expenses will increase
B) total assets remain the same✔️
