Accounting Exam 2 Review

5 Questions

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Accounting Quizzes & Trivia

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.


Questions and Answers
  • 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.