AAMI Accounting 2 Final Exam Questions and Answers

AAMI Accounting 2 Final Exam Questions and Answers The concept that prices rise over time - Correct Answer ️️ -Inflation Another term for sales - Correct Answer ️️ -Revenue Sales - Cost of Goods Sold - Correct Answer ️️ -Gross Profit In an inflationary period what method of inventory valuation would lower profits - Correct Answer ️️ -LIFO In an inflationary period what method of inventory valuation would increase profits - Correct Answer ️️ -FIFO In a deflationary period what method of inventory valuation would lower profits - Correct Answer ️️ -FIFO In a deflationary period what method of inventory valuation would higher profits - Correct Answer ️️ -LIFO What method of inventory valuation would we use as funeral directors - Correct Answer ️️ -Specific Identification Sales-CGS-All other operating expenses - Correct Answer ️️ -Net Profit Total cost/Total units available for sale - Correct Answer ️️ -Weighted Average Best method of inventory valuation - Correct Answer ️️ -Specific Identification Revenue-Expenses - Correct Answer ️️ -Net Income What method on inventory valuation raises your taxable income - Correct Answer ️️ - FIFO What method of inventory valuation lowers your taxable income - Correct Answer ️️ - LIFO What are the 4 methods of inventory valuation - Correct 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 - Correct Answer ️️ -Inventory valuation Beginning Inventory + Net purchases - Correct Answer ️️ -Cost of goods available for sale Beginning inventory + Purchases - Ending inventory - Correct Answer ️️ -Cost of goods sold The employees' withholding certificate is referred to as - Correct Answer ️️ -W-4 The wage and tax statement is - Correct Answer ️️ -W-2 Income before any payroll deductions is referred to as - Correct Answer ️️ -Gross Pay Social security is financed by - Correct Answer ️️ -FICA