ACCT 2101 Exam 2 questions n answers 2025/2026

ACCT 2101 Exam 2 questions n
answers 2025/2026

Cost of Goods Sold - ANS ✔✔The cost of the merchandise inventory that the business has sold
to customers



Periodic Method - ANS ✔✔An inventory system that requires businesses to obtain a physical
count of inventory to determine quantities on hand



Perpetual Method - ANS ✔✔An inventory system that keeps a running computerized record of
merchandise inventory



FOB Destination - ANS ✔✔Situation in which the buyer takes ownership (title) to the goods at
the delivery destination point and the seller typically pays the freight



FOB Shipping Point - ANS ✔✔Situation in which the buyer takes ownership (title) to the goods
after the goods leave the sellers place of business (shipping point) and the buyer typically pays
the freight



Gross Profit - ANS ✔✔Excess of net sales revenue over cost of goods sold (sales revenue-cost of
goods sold=gross profit)



Shrinkage - ANS ✔✔The loss of inventory that occurs because of theft, damage, and errors



Consistency - ANS ✔✔A business should use the same accounting methods and procedures
from period to period