AAMI ACCOUNTING 2 FINAL EXAM 2026 FULL
QUESTIONS AND CORRECT ANSWERS
GRADED A+
◉ Another term for sales. Answer: Revenue
◉ Sales - Cost of Goods Sold. Answer: Gross Profit
◉ In an inflationary period what method of inventory valuation would
lower profits. Answer: LIFO
◉ In an inflationary period what method of inventory valuation would
increase profits. Answer: FIFO
◉ In a deflationary period what method of inventory valuation would
lower profits. Answer: FIFO
◉ In a deflationary period what method of inventory valuation would
higher profits. Answer: LIFO
◉ What method of inventory valuation would we use as funeral
directors. Answer: Specific Identification
◉ Sales-CGS-All other operating expenses. Answer: Net Profit
,◉ Total cost/Total units available for sale. Answer: Weighted Average
◉ Best method of inventory valuation. Answer: Specific Identification
◉ Revenue-Expenses. Answer: Net Income
◉ What method on inventory valuation raises your taxable income.
Answer: FIFO
◉ What method of inventory valuation lowers your taxable income.
Answer: LIFO
◉ What are the 4 methods of inventory valuation. Answer: 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. Answer: Inventory valuation
, ◉ Beginning Inventory + Net purchases. Answer: Cost of goods
available for sale
◉ Beginning inventory + Purchases - Ending inventory. Answer: Cost of
goods sold
◉ The employees' withholding certificate is referred to as. Answer: W-4
◉ The wage and tax statement is. Answer: W-2
◉ Income before any payroll deductions is referred to as. Answer: Gross
Pay
◉ Social security is financed by. Answer: FICA
◉ FICA stands for. Answer: Federal Insurance Contributions Act
◉ Gross pay less payroll deductions. Answer: Net Pay
◉ Employee's take home pay. Answer: Net pay
◉ Deductions from an employees' paycheck. Answer: Payroll tax
QUESTIONS AND CORRECT ANSWERS
GRADED A+
◉ Another term for sales. Answer: Revenue
◉ Sales - Cost of Goods Sold. Answer: Gross Profit
◉ In an inflationary period what method of inventory valuation would
lower profits. Answer: LIFO
◉ In an inflationary period what method of inventory valuation would
increase profits. Answer: FIFO
◉ In a deflationary period what method of inventory valuation would
lower profits. Answer: FIFO
◉ In a deflationary period what method of inventory valuation would
higher profits. Answer: LIFO
◉ What method of inventory valuation would we use as funeral
directors. Answer: Specific Identification
◉ Sales-CGS-All other operating expenses. Answer: Net Profit
,◉ Total cost/Total units available for sale. Answer: Weighted Average
◉ Best method of inventory valuation. Answer: Specific Identification
◉ Revenue-Expenses. Answer: Net Income
◉ What method on inventory valuation raises your taxable income.
Answer: FIFO
◉ What method of inventory valuation lowers your taxable income.
Answer: LIFO
◉ What are the 4 methods of inventory valuation. Answer: 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. Answer: Inventory valuation
, ◉ Beginning Inventory + Net purchases. Answer: Cost of goods
available for sale
◉ Beginning inventory + Purchases - Ending inventory. Answer: Cost of
goods sold
◉ The employees' withholding certificate is referred to as. Answer: W-4
◉ The wage and tax statement is. Answer: W-2
◉ Income before any payroll deductions is referred to as. Answer: Gross
Pay
◉ Social security is financed by. Answer: FICA
◉ FICA stands for. Answer: Federal Insurance Contributions Act
◉ Gross pay less payroll deductions. Answer: Net Pay
◉ Employee's take home pay. Answer: Net pay
◉ Deductions from an employees' paycheck. Answer: Payroll tax
