ACCOUNTING 200 EXAM 5 FINAL PAPER 2026
SOLVED QUESTIONS AND FULL SOLUTION
UPDATED
◉ in FOB shipping point who pays for shipping.
Answer: buyer
◉ in FOB destination ownership passes when.
Answer: goods arrive to buyer
◉ in FOB destination who pays for shipping.
Answer: seller
◉ if ending inventory is understated, COGS is.
Answer: overstated
◉ if ending inventory is understated, net income is.
Answer: understated because COGS is overstated
◉ if ending inventory is overstated, stockholders equity is.
Answer: understated because net income is understated
,◉ if ending inventory is understated, assets are.
Answer: understated
◉ Issues with high inventory levels.
Answer: storage cost, interest cost, funds tied up in inventory, cost
associated with obsolescence.
◉ Issues with low inventory levels.
Answer: lost sales
◉ if the value of the inventory is lower than it's cost.
Answer: it must be written down to market value
◉ market value.
Answer: replacement cost
◉ lower of cost or market.
Answer: simple simple simple. pick the lower of the two prices
between cost or market
◉ inventory periodic system.
, Answer: inventory at end of period- golf balls
◉ inventory perpetual system.
Answer: tracked with each sale, keeps track of loss- cars
◉ specific ID method of inventory.
Answer: exact items sold accounted for at exact original cost for
COGS and inventory- rare
◉ in a period of inflation which cost flow method has highest net
income?.
Answer: FIFO
◉ according to our textbook do we calculate COGS or EI first?.
Answer: EI
◉ goods available for sales=.
Answer: total cost of all units
◉ common inventory error causes.
Answer: incorrect count, no proper recognition of legal title to goods
in transit, misclassifying consignments
SOLVED QUESTIONS AND FULL SOLUTION
UPDATED
◉ in FOB shipping point who pays for shipping.
Answer: buyer
◉ in FOB destination ownership passes when.
Answer: goods arrive to buyer
◉ in FOB destination who pays for shipping.
Answer: seller
◉ if ending inventory is understated, COGS is.
Answer: overstated
◉ if ending inventory is understated, net income is.
Answer: understated because COGS is overstated
◉ if ending inventory is overstated, stockholders equity is.
Answer: understated because net income is understated
,◉ if ending inventory is understated, assets are.
Answer: understated
◉ Issues with high inventory levels.
Answer: storage cost, interest cost, funds tied up in inventory, cost
associated with obsolescence.
◉ Issues with low inventory levels.
Answer: lost sales
◉ if the value of the inventory is lower than it's cost.
Answer: it must be written down to market value
◉ market value.
Answer: replacement cost
◉ lower of cost or market.
Answer: simple simple simple. pick the lower of the two prices
between cost or market
◉ inventory periodic system.
, Answer: inventory at end of period- golf balls
◉ inventory perpetual system.
Answer: tracked with each sale, keeps track of loss- cars
◉ specific ID method of inventory.
Answer: exact items sold accounted for at exact original cost for
COGS and inventory- rare
◉ in a period of inflation which cost flow method has highest net
income?.
Answer: FIFO
◉ according to our textbook do we calculate COGS or EI first?.
Answer: EI
◉ goods available for sales=.
Answer: total cost of all units
◉ common inventory error causes.
Answer: incorrect count, no proper recognition of legal title to goods
in transit, misclassifying consignments
