ACC 231 CORE MAIN EXAMS 2026 SET QUESTIONS AND ANSWERS SURE

ACC 231 CORE MAIN EXAMS 2026 SET
QUESTIONS AND ANSWERS SURE A+
✔✔Pineview Company ended the month of March with inventory of $26,000. Pineview
Company expects to end April with inventory of $14,000 after selling goods with a cost
of $98,000. How much inventory must Pineview Company purchase during April in
order to accomplish these results? - ✔✔$86,000

[Ending Inventory + COGS - Beginning Inventory]
[14,000 + 98,000 - 26,000 = 86,000}

✔✔Two financial ratios that clearly distinguish a discount chain such as Walmart from a
high-end retailer such as Gucci are the gross profit percentage and the rate of inventory
turnover. Which set of relationships is most likely for Gucci?

-GPP: Low; Inventory Turnover: Low
-GPP: Low; Inventory Turnover: High
-GPP: High; Inventory Turnover: High
-GPP: High; Inventory Turnover: Low - ✔✔-GPP: High; Inventory Turnover: Low

✔✔How is COGS classified in the financial statements? - ✔✔As an expense

, ✔✔A company's beginning inventory is $70,000, net purchases total $365,000, and net
sales are $500,000. With a normal gross profit rate of 40% of sales (COGS = 60%), how
much is ending inventory? - ✔✔$135,000

[Beg. Inventory + Net Purchases - (COGS% * Net Sales)]
[$70,000 + 365,000 - (60% * 500,000)]
[135,000]

✔✔Results in a cost of ending inventory that is close to the current cost of replacing the
inventory

-FIFO
-LIFO
-Specific-identification
-Average-cost
-All 4 methods - ✔✔FIFO

✔✔Used to account for automobiles, jewelry, and art objects

-FIFO
-LIFO
-Specific-identification
-Average-cost
-All 4 methods - ✔✔Specific-identification

✔✔Generally associated with saving income taxes

-FIFO
-LIFO
-Specific-identification
-Average-cost
-All 4 methods - ✔✔LIFO

✔✔Provides a middle-ground measure of ending inventory and cost of goods sold

-FIFO
-LIFO
-Specific-identification
-Average-cost
-All 4 methods - ✔✔Average-cost

✔✔Maximizes reported income

-FIFO
-LIFO