Test2BFall2005Master

Financial Accounting

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Fall 2005 Financial Accounting 201 EXAM #2 NAME________________________ SECTION TIME  (Circle one)   10:00  12:00  1:00 Answer all multiple choice questions below; there is only one BEST answer (2 points  each) 1. ____ B _____ 11.____ C _____ 2.  ____ D _____ 12.____ D _____ Note:  Put answers to problems on  Pages provided.  Turn in all pages 3. ____ C _____ 13. ____ C _____ of exam. 4. ____ D _____ 14. ____ D _____ Put answer sheets in front of exam. 5. ____ E _____ 15.____ B _____ SCORE 6. ____ D _____ 16. ____ B _____ Possible Actual 7. ____ C _____ 17. ____ C _____ Multiple Choice 40  8. ____ A _____ 18. ____ C _____ Problem I 20 9. ____ C _____ 19. ____ A _____ Problem   II 30 Short Answer      10 10. ____ C _____ 20. ____ C _____ Total    100 T2 Fall 05 B Page 1
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  (2 points each)  There is only  ONE   BEST   answer. MULTIPLE CHOICE  1. Under the perpetual inventory system, in addition to making the entry to record a sale, a  company would A. Make no additional entry until the end of the period. B. Debit Cost of Goods Sold and credit Merchandise Inventory. C. Debit Cost of Goods Sold and credit Purchases. D. Debit Merchandise Inventory and credit Cost of Goods Sold. 2. Welsh Company purchased an item for inventory that cost $14 per unit and was marked to  sell at $16 less selling costs of $1. It was determined that the replacement cost is $12 per  unit. No purchases in the near future are anticipated. Using the lower-of-cost-or-market  rule, the per unit valuation for inventory should be A. $16.00. B. $15.00. C. $14.00. D. $12.00. 3. Which of the following goods would  not  be included in merchandise inventory for a selling  company? A. Goods on hand in the showroom. B. Goods shipped on consignment to another company. C. Goods in transit to a customer shipped FOB shipping point. D. Goods in transit to a customer shipped FOB destination. 4. Customers often return merchandise to the store where they bought the merchandise. In  order to capture information on returned merchandise, stores should record the dollar  amount of merchandise returned by customers A. As a reduction in the Sales account. B. As an addition to the Purchases account. C. In a special inventory account called purchase returns and allowances. D. In a contra-revenue account called sales returns and allowances. 5. A list of all accounts and their balances which is used to prove the equality of debits and  credits as of a specific date: A. Account. B.
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Test2BFall2005Master - Fall 2005 Financial Accounting 201...

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