ACCT 2000 UPDATED EXAMS CORE MAIN
QUESTIONS AND ANSWERS SURE A+
✔✔To compute the inventory turnover ratio, cost of goods sold should be divided by
which of the following? - ✔✔average inventory
✔✔On December 31st, 2012, Jameson reported the following numbers: beginning
inventory $80,000; ending inventory $120,000; cost of goods sold $700,000; and sales
$1,200,000. What was Jameson's inventory turnover in 2012? - ✔✔7 times
✔✔Phantom or paper profits can result in periods of inflation when a company is using
the - ✔✔FIFO costing assumption
✔✔Which of the following is an objective of a system of internal controls? Select all that
apply. - ✔✔to safeguard company assets
to reduce the risk of errors
to enhance the accuracy and reliability of accounting records
✔✔Which of the following statements regarding auditors is true? - ✔✔They are hired by
CPA firms to audit business firms
QUESTIONS AND ANSWERS SURE A+
✔✔To compute the inventory turnover ratio, cost of goods sold should be divided by
which of the following? - ✔✔average inventory
✔✔On December 31st, 2012, Jameson reported the following numbers: beginning
inventory $80,000; ending inventory $120,000; cost of goods sold $700,000; and sales
$1,200,000. What was Jameson's inventory turnover in 2012? - ✔✔7 times
✔✔Phantom or paper profits can result in periods of inflation when a company is using
the - ✔✔FIFO costing assumption
✔✔Which of the following is an objective of a system of internal controls? Select all that
apply. - ✔✔to safeguard company assets
to reduce the risk of errors
to enhance the accuracy and reliability of accounting records
✔✔Which of the following statements regarding auditors is true? - ✔✔They are hired by
CPA firms to audit business firms
