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Accounting Exam 2 Actual Exam Questions and Answers
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Accounting Exam 2 Actual Exam Questions and Answers
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Accounting Exam 2 Actual ExamQuestions and Answers
An item of merchandise that was sold for $600 cash by a business using the perpetual
inventory system. The item cost $400. After the sale entry has been recorded, what
additional entry would be required?
A) a debit to sales and credit to inventory for $600
B) a debit to inventory and a credit to cost of goods sold for $400
C) A debit to cost of goods sold and a credit to purchases for $400
D) A debit to cost of goods sold and a credit to inventory for $400 - Answer-D) A debit to
Cost of Goods Sold and a credit to Inventory for $400
What is NOT affected by the choice of an inventory costing method (that is, between
FIFO, LIFO, and weighted average)?
A) cost of goods sold
B) net sales
C) gross profit
D) net income - Answer-B) Net Sales
Mr Goeddee deposits $500 in his savings account at the end of every month for three
years. The account's annual interest rate is 6%. To determine the balance in the
account after three years, he should use:
A) i = 0.5%
B) n = 3.
C) C Table B.2, Future Value of 1
D) All of the above - Answer-i = % 0.5
When a firm writes off a bad debt under the allowance method of accounting for bad
debts, what occurs?
A) expenses will increase
B) total assets remain the same
C) both of the above
D) neither of the above - Answer-B) Total assets remain the same
Given the following information for Potter Company, what are Net Sales?
Beginning Inventory 10,000
Gross Profit 60,000
Ending Inventory 9,000
Net Purchases 45,000
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