Rutgers financial accounting exam 2 review || || || || || ||
questions with accurate detailed solutions || || || ||
Q 6.41: Companies that want to maximize the current assets section of the balance sheet will use
|| || || || || || || || || || || || || || || || ||
which inventory cost flow method during deflationary periods? - ✔✔LIFO
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Which equation is true regarding inventory? - ✔✔Ending Inventory + Cost of Goods Sold = Cost
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of Goods Available for Sale
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Which of the following statements is true? - ✔✔The first-in, first-out (FIFO) method results in an
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ending inventory valued at the most recent cost.
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Freight costs to sell goods are characterized as what type of cost? - ✔✔SELLING
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Constant Company uses ________ for income tax purposes and financial reporting purposes. This
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is an example of the __________. - ✔✔LIFO; LIFO conformity rule.
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Which of the following statements is true about the specific identification method of costing
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inventories? - ✔✔It tracks the actual physical flow of the goods available for sale.
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If the unit cost of inventory is increasing during a period and all units are not sold, - ✔✔a
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company using the LIFO method will report less gross profit for the period than if it had used the
|| || || || || || || || || || || || || || || || || || ||
FIFO method. ||
In periods of rising prices, which inventory method results in the inventory value reported on the
|| || || || || || || || || || || || || || || ||
balance sheet being closest to current cost? - ✔✔FIFO
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which should they pick if they want their method to match the physical movement of goods? -
|| || || || || || || || || || || || || || || || ||
✔✔FIFO
, CORRECT - ✔✔There is no accounting requirement that the cost flow assumption be consistent
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with the physical movement of the goods.
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When is the specific identification method of inventory costing desirable? - ✔✔When a company
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sells a limited number of high-unit-cost items.
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Specific identification would be most desirable when a company sells a limited variety of high
|| || || || || || || || || || || || || || ||
unit cost items that could be identified clearly from time of purchase through time of sale.
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GROSS PROFIT RATE - ✔✔NET SALE- COGS)/NET SALE || || || || || || ||
An error on both the Balance Sheet and the Income Statement can occur when: - ✔✔an
|| || || || || || || || || || || || || || || ||
organization fails to count or value inventory correctly. || || || || || || ||
WHICH of the following statements regarding external auditors is true? - ✔✔They are hired by a
|| || || || || || || || || || || || || || || ||
company to evaluate the effectiveness of internal controls. || || || || || || ||
A small business owner has two employees but each employee has a separate cash register
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drawer. This situation can be viewed as - ✔✔supporting establishment of responsibility.
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What does the term "bonding" mean when it refers to employees? - ✔✔They have been insured
|| || || || || || || || || || || || || || || ||
against misappropriation of assets. || || ||
Which of the following is an example of an electronic funds transfer - ✔✔This is correct answer :
|| || || || || || || || || || || || || || || || || ||
D
|| Sending payroll data directly to banks for direct deposit to employee accounts.
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questions with accurate detailed solutions || || || ||
Q 6.41: Companies that want to maximize the current assets section of the balance sheet will use
|| || || || || || || || || || || || || || || || ||
which inventory cost flow method during deflationary periods? - ✔✔LIFO
|| || || || || || || || ||
Which equation is true regarding inventory? - ✔✔Ending Inventory + Cost of Goods Sold = Cost
|| || || || || || || || || || || || || || || ||
of Goods Available for Sale
|| || || ||
Which of the following statements is true? - ✔✔The first-in, first-out (FIFO) method results in an
|| || || || || || || || || || || || || || || ||
ending inventory valued at the most recent cost.
|| || || || || || ||
Freight costs to sell goods are characterized as what type of cost? - ✔✔SELLING
|| || || || || || || || || || || || ||
Constant Company uses ________ for income tax purposes and financial reporting purposes. This
|| || || || || || || || || || || ||
is an example of the __________. - ✔✔LIFO; LIFO conformity rule.
|| || || || || || || || || || ||
Which of the following statements is true about the specific identification method of costing
|| || || || || || || || || || || || || ||
inventories? - ✔✔It tracks the actual physical flow of the goods available for sale.
|| || || || || || || || || || || || ||
If the unit cost of inventory is increasing during a period and all units are not sold, - ✔✔a
|| || || || || || || || || || || || || || || || || || ||
company using the LIFO method will report less gross profit for the period than if it had used the
|| || || || || || || || || || || || || || || || || || ||
FIFO method. ||
In periods of rising prices, which inventory method results in the inventory value reported on the
|| || || || || || || || || || || || || || || ||
balance sheet being closest to current cost? - ✔✔FIFO
|| || || || || || || ||
which should they pick if they want their method to match the physical movement of goods? -
|| || || || || || || || || || || || || || || || ||
✔✔FIFO
, CORRECT - ✔✔There is no accounting requirement that the cost flow assumption be consistent
|| || || || || || || || || || || || || ||
with the physical movement of the goods.
|| || || || || ||
When is the specific identification method of inventory costing desirable? - ✔✔When a company
|| || || || || || || || || || || || || ||
sells a limited number of high-unit-cost items.
|| || || || || || ||
Specific identification would be most desirable when a company sells a limited variety of high
|| || || || || || || || || || || || || || ||
unit cost items that could be identified clearly from time of purchase through time of sale.
|| || || || || || || || || || || || || || ||
GROSS PROFIT RATE - ✔✔NET SALE- COGS)/NET SALE || || || || || || ||
An error on both the Balance Sheet and the Income Statement can occur when: - ✔✔an
|| || || || || || || || || || || || || || || ||
organization fails to count or value inventory correctly. || || || || || || ||
WHICH of the following statements regarding external auditors is true? - ✔✔They are hired by a
|| || || || || || || || || || || || || || || ||
company to evaluate the effectiveness of internal controls. || || || || || || ||
A small business owner has two employees but each employee has a separate cash register
|| || || || || || || || || || || || || || ||
drawer. This situation can be viewed as - ✔✔supporting establishment of responsibility.
|| || || || || || || || || || ||
What does the term "bonding" mean when it refers to employees? - ✔✔They have been insured
|| || || || || || || || || || || || || || || ||
against misappropriation of assets. || || ||
Which of the following is an example of an electronic funds transfer - ✔✔This is correct answer :
|| || || || || || || || || || || || || || || || || ||
D
|| Sending payroll data directly to banks for direct deposit to employee accounts.
|| || || || || || || || || || ||
