ACC 231 EXAM 2 Question and
answers already passed 2025/2026
Attempting to justify your actions is an example of in the fraud triangle. - correct answer
✔Rationalization
Given the following inventory activity, what is COGS using the LIFO costing method?
Beginning Balance Q: 120 UC: $3.00
Sept 17 (Purchase) Q: 60 UC: $2.50
Sept 24 (Purchase) Q: 30 UC: $6.00
Sept 29 (Sale) Q: 15 - correct answer ✔$90
Another name for a "clean" audit opinion is a(n): - correct answer ✔Unqualified opinion
Net sales times the historical gross profit percentage yields the estimated: - correct answer ✔Gross
profit
Which of the following credit terms allows a discount of 4% if payment is made within 20 days of the
invoice; otherwise, the total amount of the invoice must be paid within 30 days from the date of the
invoice? - correct answer ✔4/20, n/30
Lionworks Enterprises had the following inventory data:
BI= Beginning Inventory
P= Purchase
S= Sale
, Date Quantity Unit Cost
July 1 (BI) 5 $58
July 4 (P) 10 $52
July 7 (S) 12
Assuming average cost, what is the cost of goods sold for the July 7 sale? (Round any intermediary
calculations to the nearest cent and round your final answer to the nearest dollar.) - correct answer
✔$648
________ produces the highest cost of goods sold and the lowest gross profit when prices are
increasing. - correct answer ✔LIFO
Inventory is shown on the: - correct answer ✔Balance Sheet as a current asset.
The chance to commit a fraud, conceal it, and avoid punishment is an example of ______________ in
the fraud triangle. - correct answer ✔perceived opportunity.
C & S Company purchased 80 keyboards for $15 each using credit. When they unpacked the keyboards,
C & S found that 30 of the keyboards were damaged in shipping. What is the journal entry that C & S will
make to record the return of the 30 keyboards? - correct answer ✔Debit Accounts Payable and credit
Inventory, $450.
If a company experiences a loss of inventory due to fire, the method used to estimate the inventory lost
is - correct answer ✔Gross Profit %
If an invoice reads n/10, it means that: - correct answer ✔the company has 10 days to pay the bill in
full.
answers already passed 2025/2026
Attempting to justify your actions is an example of in the fraud triangle. - correct answer
✔Rationalization
Given the following inventory activity, what is COGS using the LIFO costing method?
Beginning Balance Q: 120 UC: $3.00
Sept 17 (Purchase) Q: 60 UC: $2.50
Sept 24 (Purchase) Q: 30 UC: $6.00
Sept 29 (Sale) Q: 15 - correct answer ✔$90
Another name for a "clean" audit opinion is a(n): - correct answer ✔Unqualified opinion
Net sales times the historical gross profit percentage yields the estimated: - correct answer ✔Gross
profit
Which of the following credit terms allows a discount of 4% if payment is made within 20 days of the
invoice; otherwise, the total amount of the invoice must be paid within 30 days from the date of the
invoice? - correct answer ✔4/20, n/30
Lionworks Enterprises had the following inventory data:
BI= Beginning Inventory
P= Purchase
S= Sale
, Date Quantity Unit Cost
July 1 (BI) 5 $58
July 4 (P) 10 $52
July 7 (S) 12
Assuming average cost, what is the cost of goods sold for the July 7 sale? (Round any intermediary
calculations to the nearest cent and round your final answer to the nearest dollar.) - correct answer
✔$648
________ produces the highest cost of goods sold and the lowest gross profit when prices are
increasing. - correct answer ✔LIFO
Inventory is shown on the: - correct answer ✔Balance Sheet as a current asset.
The chance to commit a fraud, conceal it, and avoid punishment is an example of ______________ in
the fraud triangle. - correct answer ✔perceived opportunity.
C & S Company purchased 80 keyboards for $15 each using credit. When they unpacked the keyboards,
C & S found that 30 of the keyboards were damaged in shipping. What is the journal entry that C & S will
make to record the return of the 30 keyboards? - correct answer ✔Debit Accounts Payable and credit
Inventory, $450.
If a company experiences a loss of inventory due to fire, the method used to estimate the inventory lost
is - correct answer ✔Gross Profit %
If an invoice reads n/10, it means that: - correct answer ✔the company has 10 days to pay the bill in
full.
