ACC 311 quiz 7 - ACC 311 Quiz #7 10/27/2006 Name: Class...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ACC 311 Name: KEY Quiz #7 10/27/2006 Class Time: 1. If ABC Company understates ending inventory in 2000 by $10,000 and no correcting entry is made, what will be the effect of the error on the following: 2000 net income 2001 net income 2001 retained earnings a. overstated understated understated b. understated overstated overstated c. understated overstated no effect d. overstated understated no effect e. no effect no effect no effect 2. Generally, which inventory costing method approximates most closely the current cost for each of the following? Cost of Goods sold Ending Inventory a. LIFO FIFO b. LIFO LIFO c. FIFO FIFO d. FIFO LIFO 3. Wacky Wacky Stores sold $950,000 in merchandise during 2005. $400,000 of which was on credit with terms2/10,n/30 (75 percent of these were paid within the discount period); $500,000 was paid with credit cards (there was a 3% credit card discount), and the rest were paid in cash. On December 31, 2005 the accounts receivable balance was $80,000. Answer the following questions:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/03/2008 for the course ACC 311 taught by Professor Charrier during the Spring '08 term at University of Texas at Austin.

Page1 / 2

ACC 311 quiz 7 - ACC 311 Quiz #7 10/27/2006 Name: Class...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online