ACCY 201 — TEST 2
PRACTICE ASSESSMENT
University of Mississippi (Ole Miss) | 2026–2027
40 original multiple-choice questions with answers and rationales. Original
practice material, not an official or actual/leaked exam.
Scope and instructions
Practice emphasis: inventory and cost of sales, cash and bank reconciliations,
and accounts receivable/bad debts. Confirm exact coverage with current
instructor materials. Complete each 20-question test before reviewing the key.
, PRACTICE TEST 1
1. Under a perpetual inventory system, a purchase of merchandise on
account is recorded by:
A. Debit Accounts Payable; credit Inventory
B. Debit Purchases; credit Cash
C. Debit COGS; credit Inventory
D. Debit Inventory; credit Accounts Payable
2. Net sales are $180,000 and cost of goods sold is $112,000. Gross profit
is:
A. $292,000
B. $68,000
C. $180,000
D. $112,000
3. A merchandiser's income statement typically includes which subtotal
not normally found on a service company's statement?
A. Retained earnings
B. Gross profit
C. Cash balance
D. Total assets
4. A $4,000 purchase has terms 2/10, n/30. Payment within the discount
period is:
A. $4,080
B. $3,800
C. $3,920
D. $4,000
5. Under a perpetual system, payment of the discounted $4,000 invoice is
recorded as:
A. Dr COGS 80; Cr Cash 80
B. Dr A/P 3,920; Cr Cash 3,920
C. Dr Inventory 80; Cr Cash 3,920; Cr A/P 4,000
D. Dr Accounts Payable 4,000; Cr Cash 3,920; Cr Inventory 80
6. FOB shipping point generally means ownership transfers when goods
are:
A. Received by the buyer
PRACTICE ASSESSMENT
University of Mississippi (Ole Miss) | 2026–2027
40 original multiple-choice questions with answers and rationales. Original
practice material, not an official or actual/leaked exam.
Scope and instructions
Practice emphasis: inventory and cost of sales, cash and bank reconciliations,
and accounts receivable/bad debts. Confirm exact coverage with current
instructor materials. Complete each 20-question test before reviewing the key.
, PRACTICE TEST 1
1. Under a perpetual inventory system, a purchase of merchandise on
account is recorded by:
A. Debit Accounts Payable; credit Inventory
B. Debit Purchases; credit Cash
C. Debit COGS; credit Inventory
D. Debit Inventory; credit Accounts Payable
2. Net sales are $180,000 and cost of goods sold is $112,000. Gross profit
is:
A. $292,000
B. $68,000
C. $180,000
D. $112,000
3. A merchandiser's income statement typically includes which subtotal
not normally found on a service company's statement?
A. Retained earnings
B. Gross profit
C. Cash balance
D. Total assets
4. A $4,000 purchase has terms 2/10, n/30. Payment within the discount
period is:
A. $4,080
B. $3,800
C. $3,920
D. $4,000
5. Under a perpetual system, payment of the discounted $4,000 invoice is
recorded as:
A. Dr COGS 80; Cr Cash 80
B. Dr A/P 3,920; Cr Cash 3,920
C. Dr Inventory 80; Cr Cash 3,920; Cr A/P 4,000
D. Dr Accounts Payable 4,000; Cr Cash 3,920; Cr Inventory 80
6. FOB shipping point generally means ownership transfers when goods
are:
A. Received by the buyer
