Accounting 200 Exam 2 Review ACTUAL UPDATED QUESTIONS AND CORRECT
ANSWERS
Which asset is most liquid (in accounting sense) Cash
The account, Sales returns and allowances, represents... returned mechandise
ABC offers 2/10 net 20. Which means... The customer can take a 2 % discount if they pay in 10 days
When goods or services are sold from one business to 1) Is offered so that the customer will pay the bill promptly
another on credit or sales are recorded at the gross 2) Is recorded as a contra-asset in sales
amount, a sales discount....
The direct write off method for uncollectible account... is acceptable, but inconsistant with the matching concept
If a firm uses the periodic inventory system, an adjusting 1) adjust the ending inventory balance in the inventory account
inventory is required to... 2) close purchases to the inventory account
3) Close inventory to Cost of Goods Sold
On the balance sheet, the allowance for uncollectible net accounts receivable
accounts is subtracted from account receivable to reflect
the...
During periods of rising prices, which inventory valuation LIFO
best matches current inventory costs with current
revenues? Assume the number of ending inventory units
is at least as large as the number of beginning inventory
units.
Deposits in transit are deposits recorded in the firms cash ledger but not yet recorded by the bank
ANSWERS
Which asset is most liquid (in accounting sense) Cash
The account, Sales returns and allowances, represents... returned mechandise
ABC offers 2/10 net 20. Which means... The customer can take a 2 % discount if they pay in 10 days
When goods or services are sold from one business to 1) Is offered so that the customer will pay the bill promptly
another on credit or sales are recorded at the gross 2) Is recorded as a contra-asset in sales
amount, a sales discount....
The direct write off method for uncollectible account... is acceptable, but inconsistant with the matching concept
If a firm uses the periodic inventory system, an adjusting 1) adjust the ending inventory balance in the inventory account
inventory is required to... 2) close purchases to the inventory account
3) Close inventory to Cost of Goods Sold
On the balance sheet, the allowance for uncollectible net accounts receivable
accounts is subtracted from account receivable to reflect
the...
During periods of rising prices, which inventory valuation LIFO
best matches current inventory costs with current
revenues? Assume the number of ending inventory units
is at least as large as the number of beginning inventory
units.
Deposits in transit are deposits recorded in the firms cash ledger but not yet recorded by the bank
