LSU ACCT 2000 EXAM 2 COMPREHENSIVE
EXAM 2026 QUESTIONS AND ANSWERS
GRADED A+
◉ 1) To record the adjustment for an NSF check received back by the
bank, a company would
a. Increase cash
b. Increase Accounts Receivable
c. Decrease Accounts Receivable
d. Increase Miscellaneous expense. Answer: b. Increase Accounts
Receivable
◉ 1) Why should a bank reconciliation be prepared?
a. To make sure employees have not committed fraud.
b. To explain any difference between the depositor's balance per
books and the balance per bank.
c. To explain any difference between the bank deposits and the
checks written.
d. To make sure the actual cash balance is the same as the cash
received from customers Answer: b. To explain any difference
between the depositor's balance per books and the balance per
bank.
,◉ Which inventory method maintains continuous records of
inventory every time a purchase or sale is made? Answer: Perpetual
◉ 1. With the _________________________ inventory method, Cost of
Goods Sold and Inventory is determined at the end of the accounting
period by a physical count. Answer: Periodic
◉ When a Purchaser buys Inventory, the ___________and
_____________accounts are increased. Answer: Inventory
Accounts Payable
◉ When the Seller completes a sales transaction (on credit), a two
part entry is required. Accounts Receivable is increased and Sales
Revenue is increased for the sales price. In addition, Cost of Goods
Sold is increased and Inventory is decreased for the _____________
Answer: Cost of the items
◉ List the three inventory cost flow assumptions: Answer: FIFO,
LIFO, Average Cost
◉ Inventory costing methods place primary reliance on assumptions
about the flow of Answer: costs
◉ Cost flow assumptions are used to calculate
, ______________________________
_____________________________ Answer: Cost of goods sold
Ending Inventory
◉ When using the LIFO cost flow assumption, the
_________________________items are assumed to be sold first (used to
calculate cost of goods sold). When using the FIFO cost flow
assumption, the _____________________items are assumed to be sold
first. Answer: Newest
Oldest
◉ In rising prices, the _____________cost flow assumption will result in
the lowest net income. Answer: LIFO
◉ Two methods of used to account for uncollectible accounts
receivable balances
a. _______________________________________________
b. ______________________________________________ Answer: Direct Write Off
Method
Allowance Method
◉ Accounts Receivable balances should be shown in the current
asset section of a balance sheet at its ___________________. Answer: Net
Realizable Value (A/R - Allowance for Doubtful Accounts)
EXAM 2026 QUESTIONS AND ANSWERS
GRADED A+
◉ 1) To record the adjustment for an NSF check received back by the
bank, a company would
a. Increase cash
b. Increase Accounts Receivable
c. Decrease Accounts Receivable
d. Increase Miscellaneous expense. Answer: b. Increase Accounts
Receivable
◉ 1) Why should a bank reconciliation be prepared?
a. To make sure employees have not committed fraud.
b. To explain any difference between the depositor's balance per
books and the balance per bank.
c. To explain any difference between the bank deposits and the
checks written.
d. To make sure the actual cash balance is the same as the cash
received from customers Answer: b. To explain any difference
between the depositor's balance per books and the balance per
bank.
,◉ Which inventory method maintains continuous records of
inventory every time a purchase or sale is made? Answer: Perpetual
◉ 1. With the _________________________ inventory method, Cost of
Goods Sold and Inventory is determined at the end of the accounting
period by a physical count. Answer: Periodic
◉ When a Purchaser buys Inventory, the ___________and
_____________accounts are increased. Answer: Inventory
Accounts Payable
◉ When the Seller completes a sales transaction (on credit), a two
part entry is required. Accounts Receivable is increased and Sales
Revenue is increased for the sales price. In addition, Cost of Goods
Sold is increased and Inventory is decreased for the _____________
Answer: Cost of the items
◉ List the three inventory cost flow assumptions: Answer: FIFO,
LIFO, Average Cost
◉ Inventory costing methods place primary reliance on assumptions
about the flow of Answer: costs
◉ Cost flow assumptions are used to calculate
, ______________________________
_____________________________ Answer: Cost of goods sold
Ending Inventory
◉ When using the LIFO cost flow assumption, the
_________________________items are assumed to be sold first (used to
calculate cost of goods sold). When using the FIFO cost flow
assumption, the _____________________items are assumed to be sold
first. Answer: Newest
Oldest
◉ In rising prices, the _____________cost flow assumption will result in
the lowest net income. Answer: LIFO
◉ Two methods of used to account for uncollectible accounts
receivable balances
a. _______________________________________________
b. ______________________________________________ Answer: Direct Write Off
Method
Allowance Method
◉ Accounts Receivable balances should be shown in the current
asset section of a balance sheet at its ___________________. Answer: Net
Realizable Value (A/R - Allowance for Doubtful Accounts)
