ACCOUNTING 200 EXAM 5 STUDY GUIDE
2026 TESTED QUESTIONS AND PRACTICE
SOLUTION GRADED A+
◉ 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
◉ Finding accumulated depreciation using the double declining
balance method
Answer: 1) Find [ Original Cost X (life/expected life) ]
2) Subtract this number from original cost and multiply by
(life/expected life).
3) Add both numbers from step 1 and 2 to find accumulated
depreciation
◉ Finding accumulated depreciation using the usage method
Answer: [Cost - Estimated Residual Value] / [ Estimated units of
usage ] = ???
◉ Finding accumulated deprectiation using the Straight line method
Answer: [Cost - Estimated Residual Value] / [ Expected life ]
2026 TESTED QUESTIONS AND PRACTICE
SOLUTION GRADED A+
◉ 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
◉ Finding accumulated depreciation using the double declining
balance method
Answer: 1) Find [ Original Cost X (life/expected life) ]
2) Subtract this number from original cost and multiply by
(life/expected life).
3) Add both numbers from step 1 and 2 to find accumulated
depreciation
◉ Finding accumulated depreciation using the usage method
Answer: [Cost - Estimated Residual Value] / [ Estimated units of
usage ] = ???
◉ Finding accumulated deprectiation using the Straight line method
Answer: [Cost - Estimated Residual Value] / [ Expected life ]
