A200 Exam 2 Review Questions and Answers Already Passed Latest Update 2025-2026
If production increases variable cost will
A. Remain unchanged
B. increase by a fixed amount
C. remain constant on a per unit basis
D. vary on a per unit basis.
E. increase at a decreasing rate - Answers C
In a perpetual inventory system, two entries usually are made to record each sale transaction.
The purposes of these entries are best described as follows:
A. One entry recognizes the sales revenue, and the other recognizes the cost of goods sold.
B. One entry records the purchase of the merchandise, and the other records the sale.
C. One entry records the cost of goods sold, and the other reduces the balance in the Inventory
account
D. One entry updates the general ledger, and the other updates the subsidiary ledgers. - Answers
A.
Which of the following appears in the income statement of merchandising business, but not in
the income statement of a business that renders only services?
A. Interest revenue
B. Gross profit
C. Advertising expense.
D. income taxes Expense - Answers B.
Chicago pizza reports net sales of 1M, gross profit of 450k, and net income of 80k. The
companys cost of goods sold is
A. 370k
B. 550k
C. 920k
D. Some other amount - Answers B
, The excess of a product's selling price over its variable costs is referred to as
A. gross profit
B. Contribution margin.
C. Gross Margin
D. Manufacturing margin - Answers B
Beginning inventory - 100 units $30 a unit.
Purchase 1- 60 units $35 a unit
Purchase 2- 40 units $40 a unit.
Units sold- 170 units.
What is ending inventory using LIFO?
A. 900
B. 1050
C. 1005
D. 1200
E. None of the Above - Answers A
Beginning inventory - 100 units $30 a unit.
Purchase 1- 60 units $35 a unit
Purchase 2- 40 units $40 a unit.
Units sold- 170 units.
What is cost of goods sold using FIFO?
A 1200
B 1600
C 4000
D 5500
E None of the above - Answers D
If production increases variable cost will
A. Remain unchanged
B. increase by a fixed amount
C. remain constant on a per unit basis
D. vary on a per unit basis.
E. increase at a decreasing rate - Answers C
In a perpetual inventory system, two entries usually are made to record each sale transaction.
The purposes of these entries are best described as follows:
A. One entry recognizes the sales revenue, and the other recognizes the cost of goods sold.
B. One entry records the purchase of the merchandise, and the other records the sale.
C. One entry records the cost of goods sold, and the other reduces the balance in the Inventory
account
D. One entry updates the general ledger, and the other updates the subsidiary ledgers. - Answers
A.
Which of the following appears in the income statement of merchandising business, but not in
the income statement of a business that renders only services?
A. Interest revenue
B. Gross profit
C. Advertising expense.
D. income taxes Expense - Answers B.
Chicago pizza reports net sales of 1M, gross profit of 450k, and net income of 80k. The
companys cost of goods sold is
A. 370k
B. 550k
C. 920k
D. Some other amount - Answers B
, The excess of a product's selling price over its variable costs is referred to as
A. gross profit
B. Contribution margin.
C. Gross Margin
D. Manufacturing margin - Answers B
Beginning inventory - 100 units $30 a unit.
Purchase 1- 60 units $35 a unit
Purchase 2- 40 units $40 a unit.
Units sold- 170 units.
What is ending inventory using LIFO?
A. 900
B. 1050
C. 1005
D. 1200
E. None of the Above - Answers A
Beginning inventory - 100 units $30 a unit.
Purchase 1- 60 units $35 a unit
Purchase 2- 40 units $40 a unit.
Units sold- 170 units.
What is cost of goods sold using FIFO?
A 1200
B 1600
C 4000
D 5500
E None of the above - Answers D
