ACC 231 LATEST EXAMS TEST PAPER
QUESTIONS AND ANSWERS SURE A+
✔✔Quick Ratio Formula - ✔✔Quick Assets/Current Liabilities
✔✔A company has sales revenue of $133,000, cost of goods sold of $63,000, operating
expenses of $37,000, and other expenses of $4,000. The company's operating income
is: - ✔✔$33,000
[133,000 - 63,000 - 37,000}
✔✔Operating Income Formula - ✔✔Gross Profit (Sales Revenue - COGS) - Operating
Expenses
✔✔Syrio's Snowboards uses the perpetual inventory system. At year end the general
ledger indicated that the company had a balance of $24,000 in the Inventory account.
Actual inventory on hand per a physical count was $19,000. What action does the
company now need to take?
-Debit Purchases and credit Cost of Goods Sold, $5,000
-No action is required because the amount is not material
-Debit Inventory and credit Cost of Goods Sold, $5,000
, -Debit Cost of Goods Sold and credit Inventory, $5,000 - ✔✔Debit Cost of Goods Sold
and credit Inventory, $5,000
✔✔Salieri Company purchased 80 keyboards on account for $15 each from Amadeus,
Inc. When they unpacked the keyboards, Salieri found that 30 of the keyboards were
damaged in shipping. What is the journal entry that Salieri will make to record the
purchase return?
-Debit Purchase Returns and credit Inventory $1,200
-Debit Accounts Payable - Amadeus and credit Inventory $1,200
-Debit Accounts Payable - Amadeus and credit Inventory $450
-Debit Purchase Returns and credit Inventory, $450 - ✔✔Debit Accounts Payable -
Amadeus and credit Inventory $450
✔✔Carlton Company purchases $8,000 of inventory with shipping terms, FOB Portland.
Carlton is based in Seattle and the supplier is based in Portland. The shipping costs are
$450. What is the cost of Carlton's Inventory? - ✔✔$8,450
✔✔____________ produces the lowest cost of goods sold and the highest gross profit
when prices are decreasing
-Average Cost
-Specific Identification
-LIFO
-FIFO - ✔✔LIFO
✔✔New technology, like the latest cell phones and HDTV, would probably be costed
using the:
-LIFO method of inventory costing
-moving average method of inventory costing
-any method as the physical flow and the cost flow are different
-FIFO method of inventory costing - ✔✔Any method as the physical flow and the cost
flow are different
✔✔Gengler Company acquired three pieces of equipment for $1,700,000. Equipment
#1 is appraised at $470,000, equipment #2 is appraised at $630,000 and equipment #3
is appraised for $640,000. The cost of equipment #1 is: - ✔✔$459,195
[470,000 + 630,000 + 640,000 = 1,740,000]
[470,,740,000 = 27%]
[1,700,000 * 27% = 459,195]
✔✔A company incurred the following costs for a new delivery truck:
QUESTIONS AND ANSWERS SURE A+
✔✔Quick Ratio Formula - ✔✔Quick Assets/Current Liabilities
✔✔A company has sales revenue of $133,000, cost of goods sold of $63,000, operating
expenses of $37,000, and other expenses of $4,000. The company's operating income
is: - ✔✔$33,000
[133,000 - 63,000 - 37,000}
✔✔Operating Income Formula - ✔✔Gross Profit (Sales Revenue - COGS) - Operating
Expenses
✔✔Syrio's Snowboards uses the perpetual inventory system. At year end the general
ledger indicated that the company had a balance of $24,000 in the Inventory account.
Actual inventory on hand per a physical count was $19,000. What action does the
company now need to take?
-Debit Purchases and credit Cost of Goods Sold, $5,000
-No action is required because the amount is not material
-Debit Inventory and credit Cost of Goods Sold, $5,000
, -Debit Cost of Goods Sold and credit Inventory, $5,000 - ✔✔Debit Cost of Goods Sold
and credit Inventory, $5,000
✔✔Salieri Company purchased 80 keyboards on account for $15 each from Amadeus,
Inc. When they unpacked the keyboards, Salieri found that 30 of the keyboards were
damaged in shipping. What is the journal entry that Salieri will make to record the
purchase return?
-Debit Purchase Returns and credit Inventory $1,200
-Debit Accounts Payable - Amadeus and credit Inventory $1,200
-Debit Accounts Payable - Amadeus and credit Inventory $450
-Debit Purchase Returns and credit Inventory, $450 - ✔✔Debit Accounts Payable -
Amadeus and credit Inventory $450
✔✔Carlton Company purchases $8,000 of inventory with shipping terms, FOB Portland.
Carlton is based in Seattle and the supplier is based in Portland. The shipping costs are
$450. What is the cost of Carlton's Inventory? - ✔✔$8,450
✔✔____________ produces the lowest cost of goods sold and the highest gross profit
when prices are decreasing
-Average Cost
-Specific Identification
-LIFO
-FIFO - ✔✔LIFO
✔✔New technology, like the latest cell phones and HDTV, would probably be costed
using the:
-LIFO method of inventory costing
-moving average method of inventory costing
-any method as the physical flow and the cost flow are different
-FIFO method of inventory costing - ✔✔Any method as the physical flow and the cost
flow are different
✔✔Gengler Company acquired three pieces of equipment for $1,700,000. Equipment
#1 is appraised at $470,000, equipment #2 is appraised at $630,000 and equipment #3
is appraised for $640,000. The cost of equipment #1 is: - ✔✔$459,195
[470,000 + 630,000 + 640,000 = 1,740,000]
[470,,740,000 = 27%]
[1,700,000 * 27% = 459,195]
✔✔A company incurred the following costs for a new delivery truck:
