Acg 2021 exam 2 - Study guides, Class notes & Summaries

ACG 2021 Exam 2 questions and answers

ACG 2021 Exam 2

A company purchased equipment and incurred these costs: Cash price, $26,000 Sales taxes, $1,200 Insurance during transit, $400 Annual maintenance costs, $500 What amount should be recorded as the cost of the equipment? ($26,000 + $1,200 + $400 = $27,600) =$27,600 ***The $500 annual maintenance costs are expensed as operating expenses as incurred. A company acquires land for $160,000 cash. Additional costs are as follows: Removal of shed, $500 Filling and grading, $2,000 Salvage value of lumbe...

Association of Certified Fraud Examiners (ACFE) Largest antifraud organization Occupational Fraud Use of one's occupation for personal enrichment through deliberate misuse or misapplication of the employing organization's resources. Internal Controls 1. Safeguard company's assets 2. Improve accuracy and reliability of accounting information Fraud Cases 90% involves the theft or misuse of company's resources. Another example is the manipulation of financial statements. Recent Scandals Enr...

FIFO The _______ inventory costing method produced the lowest cost of goods sold. LIFO The _______ inventory costing method produced the highest cost of goods sold. gross profit sales - cost of goods sold = ? lower of cost or market inventory is listed on the balance sheet at custody and recordkeeping a lockbox system separates what duties? $35 Dell gives you the following information: Beginning inventory: 10 units at $5.00 each Purchased: 10 units at $7.00 each 5 units at $16....

ACG 2021 Exam 2 With Complete Solutions Latest Update

At December 31, Moore Company's inventory records indicated a balance of $400,000. Upon further investigation it was determined that this amount included the following: (1) $56,000 in inventory purchases made by Moore shipped from the seller December 27 terms FOB shipping point, but not due to be received until January 3. (2) $23,000 in inventory purchases made by Moore shipped from the seller December 27 terms FOB destination, but not due to be received until January 2. (3) $6,000 in goods ...

In a period of inflation, the costs allocated to ending inventory will approximate their current cost if a. the FIFO method is used b. the LIFO method is used c. the average method is used d. all of these a. the FIFO method is used In a period of inflation, the inventory cost flow method that results in the lowest income taxes is the a. FIFO method b. LIFO method c. average cost method d. gross profit method e. none of these b. LIFO method A company reports the following: Ending inventory $34...

Internal Controls a company's plan to 1) Safeguard the company's assets, and 2) Improve the accuracy and reliability of accounting information. (4) Framework for Internal Controls a framework to be used when designing internal controls systems including the control environment, risk assessment, control activities (preventative and detective), monitoring, and information and communication. (4) Separation of duties authorizing transactions, recording transactions, and maintaining control of re...

Revenue Recognition Principle companies recognize revenue in the accounting period in which the performance obligation was satisfied. Expense Recognition Principle matches expenses with revenues in the period in the period when the company makes effort to generate those revenues Cash-Basis Accounting Revenues and Expenses are only recognized when cash is received Accrual - Basis Accounting Transactions recorded in the period in which the events occurred. (Revenue and Expense Principle) ...