AAMI Accounting 2 Final Questions With 100% Correct Solutions.

The concept that prices rise over time - Answer-Inflation Another term for sales - Answer-Revenue Sales - Cost of Goods Sold - Answer-Gross Profit In an inflationary period what method of inventory valuation would lower profits - Answer-LIFO In an inflationary period what method of inventory valuation would increase profits - Answer-FIFO In a deflationary period what method of inventory valuation would lower profits - Answer-FIFO In a deflationary period what method of inventory valuation would higher profits - Answer-LIFO What method of inventory valuation would we use as funeral directors - Answer-Specific Identification Sales-CGS-All other operating expenses - Answer-Net Profit Total cost/Total units available for sale - Answer-Weighted Average Best method of inventory valuation - Answer-Specific Identification Revenue-Expenses - Answer-Net Income What method on inventory valuation raises your taxable income - Answer-FIFO What method of inventory valuation lowers your taxable income - Answer-LIFOWhat are the 4 methods of inventory valuation - Answer-Specific Identification Weighted Average FIFO LIFO Method used to determine the CGS for merchandise that is bought for resale in a retail or merchandising business - Answer-Inventory valuation Beginning Inventory + Net purchases - Answer-Cost of goods available for sale Beginning inventory + Purchases - Ending inventory - Answer-Cost of goods sold The employees' withholding certificate is referred to as - Answer-W-4 The wage and tax statement is - Answer-W-2 Income before any payroll deductions is referred to as - Answer-Gross Pay Social security is financed by - Answer-FICA FICA stands for - Answer-Federal Insurance Contributions Act Gross pay less payroll deductions - Answer-Net Pay Employee's take home pay - Answer-Net pay Deductions from an employees' paycheck - Answer-Payroll tax Sales-CGS - Answer-Gross profit The periodic allocation of costs of assets is referred to as - Answer-DepreciationLand depreciates over time.....T or F - Answer-False An account used to record the deductions to the value of a related account is referred to as - AnswerContra-account Depreciation expense appears in which financial statement - Answer-Income statement All accounts appear on - Answer-Trial balance The periodic allocation of costs of natural resources is referred to as - Answer-Depletion