ACCOUNTING 200 EXAM 5 EXAMPREP 2026
COMPLETE QUESTIONS AND ANSWERS
ALREADY PASSED
◉ The account, Sales returns and allowances, represents...
Answer: returned mechandise
◉ ABC offers 2/10 net 20. Which means...
Answer: The customer can take a 2 % discount if they pay in 10 days
◉ When goods or services are sold from one business to another on
credit or sales are recorded at the gross amount, a sales discount....
Answer: 1) Is offered so that the customer will pay the bill promptly
2) Is recorded as a contra-asset in sales
◉ The direct write off method for uncollectible account...
Answer: is acceptable, but inconsistant with the matching concept
◉ If a firm uses the periodic inventory system, an adjusting
inventory is required to...
Answer: 1) adjust the ending inventory balance in the inventory
account
, 2) close purchases to the inventory account
3) Close inventory to Cost of Goods Sold
◉ On the balance sheet, the allowance for uncollectible accounts is
subtracted from account receivable to reflect the...
Answer: net accounts receivable
◉ During periods of rising prices, which inventory valuation best
matches current inventory costs with current revenues? Assume the
number of ending inventory units is at least as large as the number
of beginning inventory units.
Answer: LIFO
◉ Deposits in transit are
Answer: deposits recorded in the firms cash ledger but not yet
recorded by the bank
◉ The balance in a firms checking account is decreased by
Answer: 1) NSF checks
2) A transaction reported on a debit memo (by the bank)
3) Bank service charge
COMPLETE QUESTIONS AND ANSWERS
ALREADY PASSED
◉ The account, Sales returns and allowances, represents...
Answer: returned mechandise
◉ ABC offers 2/10 net 20. Which means...
Answer: The customer can take a 2 % discount if they pay in 10 days
◉ When goods or services are sold from one business to another on
credit or sales are recorded at the gross amount, a sales discount....
Answer: 1) Is offered so that the customer will pay the bill promptly
2) Is recorded as a contra-asset in sales
◉ The direct write off method for uncollectible account...
Answer: is acceptable, but inconsistant with the matching concept
◉ If a firm uses the periodic inventory system, an adjusting
inventory is required to...
Answer: 1) adjust the ending inventory balance in the inventory
account
, 2) close purchases to the inventory account
3) Close inventory to Cost of Goods Sold
◉ On the balance sheet, the allowance for uncollectible accounts is
subtracted from account receivable to reflect the...
Answer: net accounts receivable
◉ During periods of rising prices, which inventory valuation best
matches current inventory costs with current revenues? Assume the
number of ending inventory units is at least as large as the number
of beginning inventory units.
Answer: LIFO
◉ Deposits in transit are
Answer: deposits recorded in the firms cash ledger but not yet
recorded by the bank
◉ The balance in a firms checking account is decreased by
Answer: 1) NSF checks
2) A transaction reported on a debit memo (by the bank)
3) Bank service charge
