AAMI Accounting 2 Final Exam with Certified Solutions

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