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ACTG 244 Exam 2 With Questions And 100% ALL DETAILED CORRECT ANSWERS
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ACTG 244 Exam 2 With Questions And 100% ALL DETAILED CORRECT ANSWERS
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JACKLINEACTG 244 Exam 2 With Questions And 100% ALL DETAILED CORRECT ANSWERS
Terms in this set (75)
The lower the gross profit percentage, the greater False
the impact on net income of an increase in sales.
Buildings and equipment are depreciated down to True
the asset's salvage value and then no further
depreciation is recorded
All property, plant and equipment must be False
depreciated every year
To use the specific identification method, True
inventory goods must have a distinct way in which
to be recognized
When the value of inventory is less than you paid True
for it, accounting principles require that the
inventory be written down and an expense
recorded.
ACTG 244 Exam 2
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, 9/4/24, 3:56 AM
Shipping costs are added to the cost of inventory False
only when they are paid by the company, we are
purchasing inventory from.
When recording the disposal of equipment, the True
accumulated depreciation of the equipment must
be removed from the book
NSF checks are subtracted from the cash balance False
reported by the bank in the bank reconciliation
Markup percentage is calculated by dividing False
gross profit by sales
The purpose of recognizing depreciation is to False
have the balance sheet reflect the current value of
long-term assets
When a company uses the weighted (or moving) True
average method of inventory costing, cost of
goods sold will reflect a unit cost somewhere
between those computed under the FIFO and
LIFO methods
Intangible assets benefit more than one year and True
do not have physical form
The amount of cash to be shown as an asset on a False
company's balance sheet is the amount of cash
reported in the year-end bank statement
Useful life reflects the expected time that the True
asset will provide economic benefits to the
business.
The amount we pay to have merchandise shipped True
to our company is part of the cost of inventory but
the amount paid to have merchandise shipped to
our customers is a selling expense
ACTG 244 Exam 2
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