ACCOUNTING EXAM 2 ACTUAL EXAM QUESTIONS
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 inventory for $400
D) A debit to Cost of Goods Sold and a credit to Inventory for $400
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
B) Net Sales
Mr Goeddee 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
i = % 0.5
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
C) both of the above
D) neither of the above
B) Total assets remain the same
Given the following information for Potter Company, what are Net Sales?
Beginning Inventory 10,000
Gross Profit 60,000
Ending Inventory 9,000
Net Purchases 45,000
A) $ 46,000
B) $ 55,000
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 inventory for $400
D) A debit to Cost of Goods Sold and a credit to Inventory for $400
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
B) Net Sales
Mr Goeddee 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
i = % 0.5
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
C) both of the above
D) neither of the above
B) Total assets remain the same
Given the following information for Potter Company, what are Net Sales?
Beginning Inventory 10,000
Gross Profit 60,000
Ending Inventory 9,000
Net Purchases 45,000
A) $ 46,000
B) $ 55,000
