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 an...
ACG 2021 Exam 2 Questions and
Answers
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 $16.00 each
The company had 7 units in ending inventory at the end of the month. Assuming the
company uses a periodic LIFO method, what is the company's ending inventory
balance?
$142 ✅ABC Company has the following information for January:
Beginning inventory: 10 units at $8 each
Purchases: 1/10: 5 units at $9 each
1/22: 15 units at $10 each
Sales: 1/11 of 6 units
1/23 of 8 units
What's the company's ending inventory balance, assuming they use perpetual LIFO?
Have the petty cash custodian record the journal entries and replenish the fund at the
end of each month ✅What is not a good internal control procedure over Petty Cash?
Outstanding checks ✅When preparing a bank reconciliation for ABC Company, all but
which of the following would be considered deductions on the book side?
Subtract $400 to the book side of the bank reconciliation ✅Cainas Company was
preparing a bank reconciliation and had and realized that check #112 for the utilities bill
for $445 had cleared the bank but had been recorded in the general ledger as follows:
Debit: Utilities Expense for $45 and Credit: Cash $45
What does Cainas need to do on the bank reconciliation to account for the error?
, 4/2 ✅Bulls Outfitters sold inventory to the USF Bookstore on 3/29/19 FOB destination,
terms 1/15, n/30. The goods were shipped on 3/31 and received by USF on 4/2. Bulls
Outfitters will record the sale on:
$144 ✅Dell gives you the following information:
Beginning inventory: 10 units at $5.00 each
Purchased: 10 units at $7.00 each
5 units at $16.00 each
The company had 7 units in ending inventory at the end of the month. Assuming the
company uses a periodic weighted average method, what is the company's Cost of
Goods sold?
LIFO ✅Under periods of rising prices, which cost flow assumption will yield the highest
Cost of Goods Sold Expense?
No entry is required on Frank's books or Rooms to Go's books when the items are
shipped and received by Rooms to Go. ✅Frank's Fine Furniture manufactures high
quality dining room tables with matching chairs and sells these in its showroom in North
Carolina.
Frank decided to place 5 dining room sets on consignment with Rooms to Go, to test
the market in Florida. What is true regarding this transaction?
Debit: Purchases $1,000 and Credit: A/P $1,000 ✅Amazon sells $1,000 of books to
Bookholders at terms 2/10, n/30, FOB shipping point on 1/2/19.
The cost of the books was $300, and the books shipped on 1/3, arriving at Bookholders
on 1/5.
Assuming both companies uses a periodic inventory system, what journal entry will
Bookholders make on 1/3?
$625 ✅Assume you are given the following information For ABC Company:
Beginning inventory $100,
ending inventory $150
Sales $1,000
Purchases $800
Purchase discounts $50
Credit Card discounts $75
Purchase Returns $100
Freight In $25
Shipping costs $50
What is the company's Cost of goods sold expense?
Buyback arrangements ✅Which of the following is not acceptable under GAAP?
$185 ✅You are given the following information for Cainas Cookies:
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