100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
ACC 101 CHAPER 6-10 FINAL EXAM STUDY GUIDE || with Errorless Solutions 100%. CA$15.52   Add to cart
Quickly navigate to
Preview
  2.  
  3. ACC 101 CHAPER 6-10
  4.  
  5. ACC 101 CHAPER 6-10

Exam (elaborations)

ACC 101 CHAPER 6-10 FINAL EXAM STUDY GUIDE || with Errorless Solutions 100%.
 9 views  0 purchase
  • Course
  • ACC 101 CHAPER 6-10
  • Institution
  • ACC 101 CHAPER 6-10

Merchandise inventory correct answers Goods a company intends to sell. LIFO (last in, first out) correct answers Assumes last items purchased are the first sold. FIFO (First In, First Out): correct answers Assumes first items purchased are the first sold. (Chronological) Specific Identific...

[Show more]

Preview 2 out of 5  pages

Document information

  • August 9, 2024
  • 5
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • merchandise inventory

Written for

  • ACC 101 CHAPER 6-10
  • ACC 101 CHAPER 6-10

Seller

avatar-seller
FullyFocus

Reviews received

Content preview

ACC 101 CHAPER 6-10 FINAL EXAM STUDY GUIDE ||
with Errorless Solutions 100%.
Merchandise inventory correct answers Goods a company intends to sell.

LIFO (last in, first out) correct answers Assumes last items purchased are the first sold.

FIFO (First In, First Out): correct answers Assumes first items purchased are the first sold.
(Chronological)

Specific Identification correct answers Tracks each item's cost individually.

Weighted Average Cost Method: correct answers Averages cost of goods available for sale for
cost assignment.

FOB shipping point correct answers buyer owns goods in transit

FOB destination correct answers Seller owns goods in transit

Multi-Step Income Statement: Gross Profit calculation correct answers Sales revenue- Cost of
goods sold (COGS)

Inventory costing methods: Specific Identification: correct answers For unique identifiable items.

Inventory costing method: Weighted average cost correct answers COGAS (cost of goods
available for sale).

Inventory costing methods: FIFO correct answers First purchased items are sold first.

Inventory costing methods: LIFO correct answers Last purchased items are sold first.

Which method is good for Balance Sheet/Income Statement, to pay less taxes, to show more
income, etc. correct answers Balance sheet: FIFO shows higher inventory values in inflation.
Income Statement: LIFO shows lower net income in inflation (less taxes).
Less Taxes: LIFO during inflation.
More Income: FIFO during inflation

What are the effects on the financial statements for LIFO when prices are rising or falling correct
answers LIFO in Rising Prices: Higher COGS, Lower Gross Profit, Lower Taxes, Lower
Balance Sheet Inventory Value. If falling, reverse.

What are the effects on the financial statements for FIFO when prices are rising or falling correct
answers Lower COGS, Higher Gross Profit, Higher Taxes, Higher Balance Sheet Inventory
Value. If falling, reverse.

, What is the effect on net income and assets of misstating the ending merchandise inventory in
the 1st year? correct answers 1st Year: Overstated inventory leads to understated COGS,
overstated net income, and overstated assets. Understated inventory leads to the opposite.

What is the effect on net income and assets of misstating the ending merchandise inventory in
the 2nd year? correct answers 2nd Year: The effects are reversed because the error in beginning
inventory for the year corrects the misstatement impact from the previous year on COGS and net
income, but overall financial portrayal might still be affected.

Cash equivalents definition correct answers very liquid investments with original maturities of 3
months or less in which the company invests excess cash temporarily in order to earn interest.
EXAMPLE:U.S. treasury bills, Notes payable issued by major corps, Money market fund

Preparing a bank reconciliation: What is added/subtracted on Bank side? correct answers Add:
Deposits in transit
Subtract: Outstanding checks
Plus or minus: Bank errors

Preparing a bank reconciliation: What is added subtracted on Book side? correct answers Add:
Notes receivable collected by the bank, interest earned
Subtract: Bank service charges, NSF (non-sufficient funds) checks
Plus or minus: Book errors

How do you find the adjusted cash balance per bank and books? correct answers Per Bank: Start
with the bank statement balance, adjust for deposits in transit, outstanding checks, and any bank
errors to find the adjusted balance.
Per Books: Start with the book balance, adjust for any earnings (e.g., interest earned) and charges
(e.g., NSF checks, service fees), and book errors to find the adjusted balance. The goal is to
reconcile and ensure both adjusted balances match.

Allowance for Doubtful Accounts correct answers Contra assets to Accounts receivable.
Has a CR (credit) balance.
subtracted from AR on the balance sheet (AR, net = AR - Allowance for Doubtful Accounts)
It is the estimated amount of AR that the company won't be able to collect.

Accounts Receivable (AR) correct answers Money owed to a company by its customers.

Allowance for Doubtful Accounts definition correct answers Estimate of the amount of AR not
expected to be collected.

Accounts Receivable, Net correct answers The amount of AR a company expects to collect,
calculated as AR minus the Allowance for Doubtful Accounts.

Methods of accounting for uncollectible accounts: Percent of Sales Method correct answers
Estimates bad debts based on a percentage of the period's sales.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller FullyFocus. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$15.52. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

75632 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling

Recently viewed by you

Exam (elaborations) ·

(0)

Michigan Real Estate License Exam Question and answers rated A+ 2023/2024

Exam (elaborations) ·

(0)

EXAM FX REVIEW2023 WITH 100%CORRECT ANSWERS

CA$15.52
  • (0)
  Add to cart