ACC 231 Exam #2 (2025) QUESTIONS AND ALL CORRECT ANSWERS 100%
SOLVED AND GUARANTEED SUCCESS!!
Raw Materials Inventory items used in the production of goods.
Work In Process Inventory of partially completed goods.
Inventory costing metod in which a business uses the specific
Specific-identification
cost of each unit of inventory; also called the specific-unit-cost
method.
Inventory costing method in which the first inventory costs
FIFO incurred are the first costs to be assigned to cost of goods sold.
FIFO leaves in ending inventory the last, most recent, costs
incurred.
Inventory costing method in which the last inventory costs
LIFO incurred are the first costs to be assigned to cost of goods sold.
LIFO leaves in ending inventory the first, the
oldest, costs incurred.
Inventory costing method where, after each purchase of inventory,
Average Cost a new weighted average cost per unit is computed and is used to
value ending inventory and cos of goods sold.
A record of the quantity of and the cost of inventory items made
Inventory Layer
in a single purchase.
The cost of inventory on hand at the beginning of the period plus
Cost of Goods Available for Sale
the net cost of inventory purchased during the period.
A record that tracks the quantity of, and cost of assigned to,
Perpetual Inventory Record
inventory items as they are purchased and sold.
Accounting principle that states that a business should use the same
Consistency Principle
accounting methods and procedures from period to period.
Accounting principle that states that a business must report all
Conservatism
items in the financial statements at amounts that lead to the
most cautious immediate results.
The rule that a business must report inventory in the financial
LCM Rule
statements at whichever is lower, the historical cost or the
market value, of each inventory item.
, Accounting principle that states that a company must perform strictly proper
accounting only for items that are significant for the business's
Materiality
financial statements. Information is significant, or material,
when its presentation in the financial statements would cause
someone to change a decision.
Accounting principle that states that a company's financial
Full-Disclosure Principle
statements should report enough information for users to make
knowledgeable decisions about the company.
Footnotes Disclosures that accompany the financial statements.
Inventory Shrinkage The loss of inventory.
Gross Profit Method A way to estimate ending inventory by using the gross profit percentage.
Inventory Turnover The ratio of cost of goods sold to average inventory.
The average number of days that it took to sell the average
Days-Sale-in-Inventory
inventory held during the year.
An account receivable that is unable to be collected; also called an
Bad Debt
uncollectible account.
Purchase Order A document showing details of merchandise being ordered from a supplier.
Receiving Report A document evidencing the receipt of goods purchased.
The individual in an organization responsible for placing orders
Purchasing Agent
to purchase goods for that organization.
The individual in an organization responsible for the accounting
Controller
system and financial statements.
SOLVED AND GUARANTEED SUCCESS!!
Raw Materials Inventory items used in the production of goods.
Work In Process Inventory of partially completed goods.
Inventory costing metod in which a business uses the specific
Specific-identification
cost of each unit of inventory; also called the specific-unit-cost
method.
Inventory costing method in which the first inventory costs
FIFO incurred are the first costs to be assigned to cost of goods sold.
FIFO leaves in ending inventory the last, most recent, costs
incurred.
Inventory costing method in which the last inventory costs
LIFO incurred are the first costs to be assigned to cost of goods sold.
LIFO leaves in ending inventory the first, the
oldest, costs incurred.
Inventory costing method where, after each purchase of inventory,
Average Cost a new weighted average cost per unit is computed and is used to
value ending inventory and cos of goods sold.
A record of the quantity of and the cost of inventory items made
Inventory Layer
in a single purchase.
The cost of inventory on hand at the beginning of the period plus
Cost of Goods Available for Sale
the net cost of inventory purchased during the period.
A record that tracks the quantity of, and cost of assigned to,
Perpetual Inventory Record
inventory items as they are purchased and sold.
Accounting principle that states that a business should use the same
Consistency Principle
accounting methods and procedures from period to period.
Accounting principle that states that a business must report all
Conservatism
items in the financial statements at amounts that lead to the
most cautious immediate results.
The rule that a business must report inventory in the financial
LCM Rule
statements at whichever is lower, the historical cost or the
market value, of each inventory item.
, Accounting principle that states that a company must perform strictly proper
accounting only for items that are significant for the business's
Materiality
financial statements. Information is significant, or material,
when its presentation in the financial statements would cause
someone to change a decision.
Accounting principle that states that a company's financial
Full-Disclosure Principle
statements should report enough information for users to make
knowledgeable decisions about the company.
Footnotes Disclosures that accompany the financial statements.
Inventory Shrinkage The loss of inventory.
Gross Profit Method A way to estimate ending inventory by using the gross profit percentage.
Inventory Turnover The ratio of cost of goods sold to average inventory.
The average number of days that it took to sell the average
Days-Sale-in-Inventory
inventory held during the year.
An account receivable that is unable to be collected; also called an
Bad Debt
uncollectible account.
Purchase Order A document showing details of merchandise being ordered from a supplier.
Receiving Report A document evidencing the receipt of goods purchased.
The individual in an organization responsible for placing orders
Purchasing Agent
to purchase goods for that organization.
The individual in an organization responsible for the accounting
Controller
system and financial statements.
