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ACC 557 Midterm Exam Part 2

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ACC 557 Midterm Exam Part 2

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  1. ACC 557 MIDTERM EXAM PART 2 By : www.studentehelp.com Copyright All Rights Reserved by http://www.studentehelp.com/

  2. Question 1 Net income is gross profit less • financing expenses. • operating expenses. • other expenses and losses. • other expenses. Question 2 On November 2, 2014, Kasdan Company has cash sales of $6,000 from merchandise having a cost of $3,600. The entries to record the day's cash sales will include: • a $3,600 credit to Cost of Goods Sold. • a $6,000 credit to Cash. • a $3,600 credit to Inventory. • d a $6,000 debit to Accounts Receivable. Copyright All Rights Reserved by http://www.studentehelp.com/

  3. Question 3 Glenn Company purchased merchandise inventory with an invoice price of $9,000 and credit terms of 2/10, n/30. What is the net cost of the goods if Glenn Company pays within the discount period? • $8,100 • $8,280 • $8,820 • $9,000 Question 4 When a seller grants credit for returned goods, the account that is credited is • Sales Revenue. • Sales Returns and Allowances. • Inventory. • Accounts Receivable. Copyright All Rights Reserved by http://www.studentehelp.com/

  4. Question 5 An aging of a company's accounts receivable indicates that $14,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $1,100 credit balance, the adjustment to record bad debts for the period will require a • debit to Bad Debt Expense for $14,000. • debit to Allowance for Doubtful Accounts for $12,900. • debit to Bad Debt Expense for $12,900. • credit to Allowance for Doubtful Accounts for $14,000. Find the Complete exam answers click here ACC 557 Week 1 Complete Question 6 The basic issues in accounting for notes receivable include each of the following except • analyzing notes receivable. • disposing of notes receivable. • recognizing notes receivable. • valuing notes receivable. Copyright All Rights Reserved by http://www.studentehelp.com/

  5. Question 7 Three accounting issues associated with accounts receivable are • depreciating, returns, and valuing. • depreciating, valuing, and collecting. • recognizing, valuing, and disposing. • accrual, bad debts, and disposing. Question 8 A cash discount is usually granted to all of the following except • retail customers. • retailers. • wholesalers. • All of these answers are correct. Copyright All Rights Reserved by http://www.studentehelp.com/

  6. Question 9 If a company fails to record estimated bad debts expense, • cash realizable value is understated. • expenses are understated. • revenues are understated. • receivables are understated. Question 10 Bad Debt Expense is considered • an avoidable cost in doing business on a credit basis. • an internal control weakness. • a necessary risk of doing business on a credit basis. • avoidable unless there is a recession. Want to download the Complete Assignments of ACC 557….?? Click ACC 557 Complete Assignment Copyright All Rights Reserved by http://www.studentehelp.com/

  7. Question 11 The collection of an account that had been previously written off under the allowance method of accounting for uncollectibles • will increase income in the period it is collected. • will decrease income in the period it is collected. • requires a correcting entry for the period in which the account was written off. • does not affect income in the period it is collected. Question 12 The maturity value of a $50,000, 9%, 60-day note receivable dated July 3 is • $50,000. • $50,750. • $54,500. • $59,000. Copyright All Rights Reserved by http://www.studentehelp.com/

  8. Question 13 The control principle related to not having the same person authorize and pay for goods is known as • establishment of responsibility. • independent internal verification. • segregation of duties. • rotation of duties. Question 14 If the month-end bank statement shows a balance of $54,000, outstanding checks are $15,000, a deposit of $6,000 was in transit at month end, and a check for $900 was erroneously charged by the bank against the account, the correct balance in the bank account at month end is • $44,100. • $45,000. • $45,900. • $62,100. Copyright All Rights Reserved by http://www.studentehelp.com/

  9. Question 15 A system of internal control • is infallible. • can be rendered ineffective by employee collusion. • invariably will have costs exceeding benefits. • is premised on the concept of absolute assurance. Want to see the answers of ACC 557 Midterm Exam click…..?? ACC 557 Midterm Exam Question 16 A credit balance in Cash Over and Short is reported as a(n) • asset. • liability. • miscellaneous expense. • miscellaneous revenue. Copyright All Rights Reserved by http://www.studentehelp.com/

  10. Question 17 The cash account shows a balance of $40,000 before reconciliation. The bank statement does not include a deposit of $9,200 made on the last day of the month. The bank statement shows a collection by the bank of $3,960 and a customer’s check for $1,300 was returned because it was NSF. A customer’s check for $1,380 was recorded on the books as $1,920, and a check written for $318 was recorded as $390. The correct balance in the cash account was • $42,048. • $42,192. • $43,128. • $51,392. Question 18 A petty cash fund of $100 is replenished when the fund contains $4 in cash and receipts for $93. The entry to replenish the fund would • credit Cash Over and Short for $3. • credit Miscellaneous Revenue for $3. • debit Cash Over and Short for $3. • debit Miscellaneous Expense for $3. Copyright All Rights Reserved by http://www.studentehelp.com/

  11. Question 19 Jolene is warehouse custodian and also maintains the accounting record of the inventory held at the warehouse. An assessment of this situation indicates • documentation procedures are violated. • independent internal verification is violated. • segregation of duties is violated. • establishment of responsibility is violated. Question 20 Having one person post entries to accounts receivable subsidiary ledger and a different person post to the Accounts Receivable Control account in the general ledger is an example of • inadequate internal control. • duplication of effort. • external verification. • segregation of duties. Click here to download the complete class of ACC 557 Copyright All Rights Reserved by http://www.studentehelp.com/

  12. Question 21 Which of the following statements is correct with respect to inventories? • The FIFO method assumes that the costs of the earliest goods acquired are the last to be sold. • It is generally good business management to sell the most recently acquired goods first. • Under FIFO, the ending inventory is based on the latest units purchased. • FIFO seldom coincides with the actual physical flow of inventory. Question 22 In a manufacturing business, inventory that is ready for sale is called • raw materials inventory. • work in process inventory. • finished goods inventory. • store supplies inventory. Copyright All Rights Reserved by http://www.studentehelp.com/

  13. Question 23 Two companies report the same cost of goods available for sale but each employs a different inventory costing method. If the price of goods has increased during the period, then the company using • LIFO will have the highest ending inventory. • FIFO will have the highest cost of good sold. • FIFO will have the highest ending inventory. • LIFO will have the lowest cost of goods sold. Question 24 Indrisano's Used Cars uses the specific identification method of costing inventory. During March, Indrisano purchased three cars for $12,000, $14,400, and $19,200, respectively. During March, two cars are sold for a total of $34,600. Indrisano determines that at March 31, the $14,400 car is still on hand. What is Indrisano’s gross profit for March? • $1,000. • $3,400. • $4,200. • $8,200. Copyright All Rights Reserved by http://www.studentehelp.com/

  14. Question 25 A company purchased inventory as follows: 150 units at $5 350 units at $6 The average unit cost for inventory is • $5.00. • $5.50. • $5.70. • $6.00. Copyright All Rights Reserved by http://www.studentehelp.com/

  15. About Author: This article covers the topic for the Strayer UniversityACC 557 Midterm Exam Part 2. The author is working in the field of education from last 5 years. This article covers the questions & answers of ACC 557 Complete Coursefrom Strayer University. Other topics in the class are as follows: • ACC 557 Week 1 DQ 1 • ACC 557 Week 1 Homework • ACC 557 Week 1 Complete • ACC 557 Midterm Exam Part 1 • ACC 557 Midterm Exam Part 2 • Want to check other classes..?? Visit http://www.studentehelp.com/ Copyright All Rights Reserved by http://www.studentehelp.com/

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