ACCT 2000 LSU TEST BANK FINAL EXAM 2026/2027 AND
HIGH YIELD PRACTICE QUESTIONS COMPLETE ACCURATE
EXAM APPROVED QUESTIONS AND CORRECT VERIFIED
SOLUTIONS (100% CORRECT VERIFIED ANSWERS)
CURRENTLY UPDATED VERSION 2026 EDITION
|GUARANTEED PASS
(1.2) Which of the following is considered an account payable?
Select answer from the options below:
1. inventory available for purchase
2. a payment from a customer for goods purchased
3. a payment owed to a creditor for the purchase of goods on credit
4. an expense that is offset by revenue
A payment owed to a creditor for the purchase of goods on credit
- Accounts payables are made up of purchases made on credit. This creates a
liability for the company and is reflected in the company's financial statements.
There is usually an increase in both assets and liabilities. An example of
accounts payable includes a payment owed to a creditor to purchase goods
on credit
,A company buys investment securities for $1 million on January 1, 2022. On
December 31, 2022, the market value of the securities has grown to $1.5
million. What is the value of the investment securities on December 31, 2022,
according to the historical cost principle? The fair value principle?
Select answer from the options below:
$1.5 million; $1 million
$1 million; $1 million
$1.5 million; $1.5 million
$1 million; $1.5 million
$1 million; $1.5 million
- The historical cost principle dictates that companies report assets at their cost,
both at the time of their purchase and over the time the asset is held.
According to this principle, the value of the securities would be 1,000,000.
- The fair value principle indicates that assets and liabilities should be reported
at fair value, which is the price that would be received if an asset was sold
or
that would be required to be paid if a liability was settled. According to this
principle, the value of the securities would be $1,500,000
,(15.5) A merchandising company has computed that its required merchandise
purchases are $428,000. The company's budgeted cost of goods sold is
$696,000, and its desired ending inventory is budgeted at $82,400. What is the
company's budgeted beginning inventory?
Select answer from the options below:
$345,600
$350,400
$164,800
$185,600
$350,400
- Formula for COGS = Beginning Inventory + Purchases - Ending Inventory. The
formula can be rearranged as follows to calculate beginning inventory +
Purchases - Ending Inventory. The formula can be rearranged as follows to
calculate Beginning Inventory + Cost of Goods Sold - Purchases + Ending
Inventory = Beginning Inventory
$696,000 - $428,000 + $82,400 = $350,400
Historical cost principle
dictates that companies report assets at their cost, both at the time of their
purchase and over the time the asset is held.
Fair Value Principle
indicates that assets and liabilities should be reported at fair value, which is
the price that would be received if an asset was sold or that would be
required to be paid if a liability was settled.
, (13.1) Nicole assembles and sells flower bouquets at special school events
as a fundraiser for the school. Nicole sells anywhere from 25 to 200
bouquets per event. Following are Nicole's costs based on the number of
bouquets sold.
Which is an example of a mixed cost?
1. employee wages
2. advertising
3. flowers
4. fees and donations
Fees and donations
- A mixed cost contains both a fixed and variable component.
- Advertising and employee wages are fixed costs because they are
constant across the levels of activity. Flowers is a variable cost of $3 per
unit. Fees and
donations are a mixed cost: ($250-$75)/(200-25) = $1 per unit plus fixed costs of
$50
(4.1) Which of the following is the accounting concept on which adjustments for
prepayments and accruals are based?
Select answer from the options below:
1. expense recognition
2. periodicity
3. monetary unit
4. cost
Expense recognition
- The critical issue in expense recognition is determining when the expense
makes its contribution to revenue and may require using adjustments, so the
expense is reported in the same period as the revenue it helped generate.
Prepayments are expenses paid in cash before consumption. They are
recorded as an asset when paid and the expired portion, used with the
passage of time,
are expensed.
HIGH YIELD PRACTICE QUESTIONS COMPLETE ACCURATE
EXAM APPROVED QUESTIONS AND CORRECT VERIFIED
SOLUTIONS (100% CORRECT VERIFIED ANSWERS)
CURRENTLY UPDATED VERSION 2026 EDITION
|GUARANTEED PASS
(1.2) Which of the following is considered an account payable?
Select answer from the options below:
1. inventory available for purchase
2. a payment from a customer for goods purchased
3. a payment owed to a creditor for the purchase of goods on credit
4. an expense that is offset by revenue
A payment owed to a creditor for the purchase of goods on credit
- Accounts payables are made up of purchases made on credit. This creates a
liability for the company and is reflected in the company's financial statements.
There is usually an increase in both assets and liabilities. An example of
accounts payable includes a payment owed to a creditor to purchase goods
on credit
,A company buys investment securities for $1 million on January 1, 2022. On
December 31, 2022, the market value of the securities has grown to $1.5
million. What is the value of the investment securities on December 31, 2022,
according to the historical cost principle? The fair value principle?
Select answer from the options below:
$1.5 million; $1 million
$1 million; $1 million
$1.5 million; $1.5 million
$1 million; $1.5 million
$1 million; $1.5 million
- The historical cost principle dictates that companies report assets at their cost,
both at the time of their purchase and over the time the asset is held.
According to this principle, the value of the securities would be 1,000,000.
- The fair value principle indicates that assets and liabilities should be reported
at fair value, which is the price that would be received if an asset was sold
or
that would be required to be paid if a liability was settled. According to this
principle, the value of the securities would be $1,500,000
,(15.5) A merchandising company has computed that its required merchandise
purchases are $428,000. The company's budgeted cost of goods sold is
$696,000, and its desired ending inventory is budgeted at $82,400. What is the
company's budgeted beginning inventory?
Select answer from the options below:
$345,600
$350,400
$164,800
$185,600
$350,400
- Formula for COGS = Beginning Inventory + Purchases - Ending Inventory. The
formula can be rearranged as follows to calculate beginning inventory +
Purchases - Ending Inventory. The formula can be rearranged as follows to
calculate Beginning Inventory + Cost of Goods Sold - Purchases + Ending
Inventory = Beginning Inventory
$696,000 - $428,000 + $82,400 = $350,400
Historical cost principle
dictates that companies report assets at their cost, both at the time of their
purchase and over the time the asset is held.
Fair Value Principle
indicates that assets and liabilities should be reported at fair value, which is
the price that would be received if an asset was sold or that would be
required to be paid if a liability was settled.
, (13.1) Nicole assembles and sells flower bouquets at special school events
as a fundraiser for the school. Nicole sells anywhere from 25 to 200
bouquets per event. Following are Nicole's costs based on the number of
bouquets sold.
Which is an example of a mixed cost?
1. employee wages
2. advertising
3. flowers
4. fees and donations
Fees and donations
- A mixed cost contains both a fixed and variable component.
- Advertising and employee wages are fixed costs because they are
constant across the levels of activity. Flowers is a variable cost of $3 per
unit. Fees and
donations are a mixed cost: ($250-$75)/(200-25) = $1 per unit plus fixed costs of
$50
(4.1) Which of the following is the accounting concept on which adjustments for
prepayments and accruals are based?
Select answer from the options below:
1. expense recognition
2. periodicity
3. monetary unit
4. cost
Expense recognition
- The critical issue in expense recognition is determining when the expense
makes its contribution to revenue and may require using adjustments, so the
expense is reported in the same period as the revenue it helped generate.
Prepayments are expenses paid in cash before consumption. They are
recorded as an asset when paid and the expired portion, used with the
passage of time,
are expensed.
