AAMI Accounting 2 Final Evaluation Analysis Questions and Answers Verified Solutions Latest Update 2026/2027

AAMI Accounting 2 Final Evaluation
Analysis Questions and Answers Verified
Solutions Latest Update 2026/2027

Question:
What rate do we assume when we use the declining balance method of depreciation.

Answer:
.40


Question:
What are the 4 methods of calculating depreciation.

Answer:
Straight line method
Units of Output
Sum of years digits
Double declining method


Question:
Acquisition cost-Accumulated depreciation.

Answer:
Book value


Question:
What are the accelerated methods of depreciation.

Answer:
Double declining method
Sum of years digits

,Question:
Which depreciation method establishes the same depreciation expense per year.

Answer:
Straight line method


Question:
Which depreciation method establishes the same depreciation expense per use.

Answer:
Units of output method


Question:
Acquisition cost-Salvage value/Useful life in years.

Answer:
Annual depreciation expense


Question:
Acquisition cost-Salvage value/Units of output.

Answer:
Depreciation expense per use


Question:
Journal Entry: purchase of goods to sell on account w/ a freight charge.

Answer:
Debit:
merchandise purchases
freight in
Credit:
Cash

, Question:
A company that purchases finished goods for resale.

Answer:
Merchandising company


Question:
Journal Entry: Payment on account and take advantage of early discount.

Answer:
Debit:
Accounts Payable
Credit:
Cash
Purchase discount


Question:
Journal Entry: Company purchases goods to sell on account.

Answer:
Debit:
Merchandise Purchases
Credit:
Accounts Payable


Question:
Journal Entry: Returned purchased goods to sell that were originally bought for cash.

Answer:
Debit:
Cash
Purchase discount
Credit:
purchase returns and allowances


Question: