Test_2-form_1 - ACC201Sample Test 2 Form 1 _ Name _ Section...

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ACC201- Sample Test 2 Form 1 ___________________ ___ Name __________ Section Number DO NOT OPEN THIS BOOKLET UNTIL TOLD TO DO SO Instructions: 1. Complete the bubble sheet with your printed name, PID number, Section Number, and Form Number . Then bubble in this information too . Be careful to clearly and cleanly complete this information . Also put your name and section number on this booklet. 2. Choose the best answer for each question from the choices given and bubble in your answer to the corresponding question number. Only answers filled in on the bubble sheet will be used for grading purposes. 3. The test contains 20 multiple choice questions worth 4 points each, for a total of 80 points. 4. Turn in the bubble sheet and this exam booklet to YOUR SA and make sure they check your name off of their class list. 5. Unless told otherwise in a question, assume Accrual Basis of Accounting and a fiscal year-end of December 31 . CHEATING WILL RESULT IN TEST TAKEN AND A ZERO SCORE.
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SAMPLE TEST 2- FORM 1 1. Which of the following statements is not a characteristic of the LIFO method of pricing inventory? A) During a period of rising prices, LIFO tends to minimize the amounts of income taxes owed. B) The cost of goods sold is measured in relatively current costs. C) Inventory is valued at relatively current costs. D) None of the above; these statements all describe characteristics of the LIFO method. 2. An understatement of the ending inventory in Year 1(only error was in not counting part of inventory and thus understating the amount), if not corrected, will cause A) Year 1 net income to be understated and Year 2 net income to be overstated. B) Year 1 net income to be overstated and Year 2 net income to be overstated. C) Year 1 net income to be overstated and Year 2 net income will be correct. D) Year 1 net income to be overstated and Year 2 net income to be understated. E) Year 1 net income to be understated and Year 2 net income will be correct. 3. Hilliard’s Company uses the periodic FIFO method to value inventory and had the following transactions in the period. What are the cost of goods sold and ending inventory balances in dollars for the period? Date
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This note was uploaded on 04/02/2008 for the course ACCT 201 taught by Professor Anothony during the Spring '07 term at Michigan State University.

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Test_2-form_1 - ACC201Sample Test 2 Form 1 _ Name _ Section...

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