Accounting Exam 2 Review
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Exams give everyone a thought that they are not fully prepared. Having done a mock exam in class in preparation for the finals this review questions cover some concepts that you should ensure you understand fully. Give it a try and all the best as you revise for the finals.
- 1.
- A.
The buyer has title to the goods until they are delivered.
- B.
The seller has title to the goods until they are delivered.
- C.
The shipper has title to the goods while they are in transit.
- D.
No one has title to the goods until they are delivered.
- 2.If beginning inventory is understated by $10,000, the effect of this error in the current period is: Cost of Goods Sold Net Income
- A.
Understated Understated
- B.
Overstated Overstated
- C.
Understated Overstated
- D.
Overstated Understated
- 3.Which of the following companies would most like have the highest inventory turnover?
- A.
A bakery.
- B.
An art gallery.
- C.
A car dealer.
- D.
A piano manufacturer.
- 4.Which method of inventory costing is prohibited under IFRS?
- A.
FIFO.
- B.
LIFO
- C.
Specific identification.
- D.
Average cost.
- 5.An assumption about inventory cost flow is necessary:
- A.
Because inventory costs change and tracking which units actually sold is difficult.
- B.
Because cost flow must follow the physical flow of the inventory.
- C.
Because average days in inventory must be computed.
- D.
So as to compute total operating expenses.
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