ACC101 full
Questions and
Answers Updated
2026
AB-BAnswerBQN=1BMerchandiseBinventoryBincludes:B
a.BAllBgoodsBownedBbyBaBcompanyBandBheldBforBsale.
b.BAllBgoodsBinBtransit.
c.BAllBgoodsBonBconsignment.
d.BOnlyBdamagedBgoods.
e.BAllBgoodsBinBtheBstoresBofBcompany.
EB-
BAnswerBQN=2BCostsBincludedBinBtheBMerchandiseBInventoryBac
countBcanBinclude:B
a.BInvoiceBpriceBminusBanyBdiscount.
b.BTransportation-in.
c.BStorage.
d.BInsurance.
,e.BAllBofBthese.
EB-
BAnswerBQN=3BDuringBaBperiodBofBsteadilyBrisingBcosts,BtheBin
ventoryBvaluationBmethodBthatByieldsBtheBlowestBreportedBnetBi
ncomeBis:B
a.BSpecificBidentificationBmethod.
b.BAverageBcostBmethod.
c.BWeighted-averageBmethod.
d.BFIFOBmethod.
e.BLIFOBmethod.
AB-
BAnswerBQN=4BTheBinventoryBvaluationBmethodBthatBresultsBin
BtheBlowestBtaxableBincomeBinBaBperiodBofBinflationBis:B
a.BLIFOBmethod.
b.BFIFOBmethod.B
c.BWeighted-averageBcostBmethod.
d.BSpecificBidentificationBmethod.
e.BGrossBprofitBmethod.
CB-
BAnswerBQN=5BWhichBofBtheBfollowingBinventoryBcostingBmeth
odsBwillBalwaysBresultBinBtheBsameBvaluesBforBendingBinventory
,BandBcostBofBgoodsBsoldBregardlessBofBwhetherBaBperpetualBor
BperiodicBinventoryBsystemBisBused?B
a.BFIFOBandBLIFO
b.BLIFOBandBweighted-averageBcost
c.BSpecificBidentificationBandBFIFO
d.BFIFOBandBweighted-averageBcost
e.BLIFOBandBspecificBidentification
AB-
BAnswerBQN=6BAnBoverstatementBofBendingBinventoryBwillBcaus
eB
a.BAnBoverstatementBofBassetsBandBequityBonBtheBbalanceBshee
t.
b.BAnBunderstatementBofBassetsBandBequityBonBtheBbalanceBsh
eet.
c.BAnBoverstatementBofBassetsBandBanBunderstatementBofBequit
yBonBtheBbalanceBsheet.
d.BAnBunderstatementBofBassetsBandBanBoverstatementBofBequit
yBonBtheBbalanceBsheet.
e.BNoBeffectBonBtheBbalanceBsheet.
EB-BAnswerBQN=B7BAcceptableBinventoryBmethodsBinclude:B
a.BLIFOBmethod.
b.BFIFOBmethod.
, c.BSpecificBidentificationBmethod.
d.BWeightedBaverageBmethod.
e.BAllBofBthese.
BB-
BAnswerBQN=8BABcompanyBhadBtheBfollowingBpurchasesBduring
BtheBcurrentByear:
Jan:B10BunitsBatB$B120
Feb:B20BunitsBatB$130
May:B15BunitsBatB$140
Sep:B12BunitsBatB$150
Nov:B10BunitsBatB$160
OnBDecemberB31,BthereBwereB26BunitsBremainingBinBendingBinv
entory.BTheseB26BunitsBconsistedBofB2BfromBJanuary,B4BfromBFe
bruary,B6BfromBMay,B4BfromBSeptember,BandB10BfromBNovemb
er.BUsingBtheBspecificBidentificationBmethod,BwhatBisBtheBcostBo
fBtheBendingBinventory?B
a.B$3,500.
b.B$3,800.
c.B$3,960.
d.B$3,280.
e.B$3,640.
Questions and
Answers Updated
2026
AB-BAnswerBQN=1BMerchandiseBinventoryBincludes:B
a.BAllBgoodsBownedBbyBaBcompanyBandBheldBforBsale.
b.BAllBgoodsBinBtransit.
c.BAllBgoodsBonBconsignment.
d.BOnlyBdamagedBgoods.
e.BAllBgoodsBinBtheBstoresBofBcompany.
EB-
BAnswerBQN=2BCostsBincludedBinBtheBMerchandiseBInventoryBac
countBcanBinclude:B
a.BInvoiceBpriceBminusBanyBdiscount.
b.BTransportation-in.
c.BStorage.
d.BInsurance.
,e.BAllBofBthese.
EB-
BAnswerBQN=3BDuringBaBperiodBofBsteadilyBrisingBcosts,BtheBin
ventoryBvaluationBmethodBthatByieldsBtheBlowestBreportedBnetBi
ncomeBis:B
a.BSpecificBidentificationBmethod.
b.BAverageBcostBmethod.
c.BWeighted-averageBmethod.
d.BFIFOBmethod.
e.BLIFOBmethod.
AB-
BAnswerBQN=4BTheBinventoryBvaluationBmethodBthatBresultsBin
BtheBlowestBtaxableBincomeBinBaBperiodBofBinflationBis:B
a.BLIFOBmethod.
b.BFIFOBmethod.B
c.BWeighted-averageBcostBmethod.
d.BSpecificBidentificationBmethod.
e.BGrossBprofitBmethod.
CB-
BAnswerBQN=5BWhichBofBtheBfollowingBinventoryBcostingBmeth
odsBwillBalwaysBresultBinBtheBsameBvaluesBforBendingBinventory
,BandBcostBofBgoodsBsoldBregardlessBofBwhetherBaBperpetualBor
BperiodicBinventoryBsystemBisBused?B
a.BFIFOBandBLIFO
b.BLIFOBandBweighted-averageBcost
c.BSpecificBidentificationBandBFIFO
d.BFIFOBandBweighted-averageBcost
e.BLIFOBandBspecificBidentification
AB-
BAnswerBQN=6BAnBoverstatementBofBendingBinventoryBwillBcaus
eB
a.BAnBoverstatementBofBassetsBandBequityBonBtheBbalanceBshee
t.
b.BAnBunderstatementBofBassetsBandBequityBonBtheBbalanceBsh
eet.
c.BAnBoverstatementBofBassetsBandBanBunderstatementBofBequit
yBonBtheBbalanceBsheet.
d.BAnBunderstatementBofBassetsBandBanBoverstatementBofBequit
yBonBtheBbalanceBsheet.
e.BNoBeffectBonBtheBbalanceBsheet.
EB-BAnswerBQN=B7BAcceptableBinventoryBmethodsBinclude:B
a.BLIFOBmethod.
b.BFIFOBmethod.
, c.BSpecificBidentificationBmethod.
d.BWeightedBaverageBmethod.
e.BAllBofBthese.
BB-
BAnswerBQN=8BABcompanyBhadBtheBfollowingBpurchasesBduring
BtheBcurrentByear:
Jan:B10BunitsBatB$B120
Feb:B20BunitsBatB$130
May:B15BunitsBatB$140
Sep:B12BunitsBatB$150
Nov:B10BunitsBatB$160
OnBDecemberB31,BthereBwereB26BunitsBremainingBinBendingBinv
entory.BTheseB26BunitsBconsistedBofB2BfromBJanuary,B4BfromBFe
bruary,B6BfromBMay,B4BfromBSeptember,BandB10BfromBNovemb
er.BUsingBtheBspecificBidentificationBmethod,BwhatBisBtheBcostBo
fBtheBendingBinventory?B
a.B$3,500.
b.B$3,800.
c.B$3,960.
d.B$3,280.
e.B$3,640.
