Fall+2007+Exam+2A

Fall+2007+Exam+2A - Name Student ID Number Discussion...

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Name ____ Student ID Number Discussion Section T A MGT 11A – Exam 2 Version A MGT 11A Fall 200 7 Professor John Hancock There are 33 questions in this exam. Each question is worth 3 points for a total of 99 points. Please use the blue 2000 version of the scantron. Be sure to bubble in your ID number on the scantron form, and indicate the Exam Code (Version A or B).
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MGT 11A Fall 2007 Exam 2A Student: ___________________________________________________________________________ 1. When the maker of a note honors a note this indicates that the note is: A. Signed. B. Paid in full. C. Guaranteed. D. Notarized. E. Cosigned. 2. If a period-end inventory amount is reported in error, it can cause a misstatement in: A. Cost of goods sold. B. Gross profit. C. Net income. D. Current assets. E. All of the above. 3. During a period of steadily rising costs, the inventory valuation method that yields the lowest reported net income is: A. Specific identification method. B. Average cost method. C. Weighted-average method. D. FIFO method. E. LIFO method. 4. The amount of bad debt expense can be estimated by: A. The percent of sales method. B. The percent of accounts receivable method. C. The aging of accounts receivable method. D. Only b and c. E. All of the above. 5. The credit terms 2/10, n/30 are interpreted as: A. 2% cash discount if the amount is paid within 10 days, with the balance due in 30 days. B. 10% cash discount if the amount is paid within 2 days, with balance due in 30 days. C. 30% discount if paid within 2 days. D. 30% discount if paid within 10 days. E. 2% discount if paid within 30 days. 6. In applying the lower of cost or market method to inventory valuation, market is defined as: A. Historical cost. B. Current replacement cost. C. Current sales price. D. FIFO. E. LIFO. 1
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7. The understatement of the ending inventory balance causes: A. Cost of goods sold to be overstated and net income to be understated. B. Cost of goods sold to be overstated and net income to be overstated. C. Cost of goods sold to be understated and net income to be understated. D. Cost of goods sold to be understated and net income to be overstated. E. Cost of goods sold to be overstated and net income to be correct. 8. A company's cost of goods sold was $4,000. Determine net purchases and ending inventory given goods available for sale were $11,000 and beginning inventory was $5,000. A. Net Purchases: $15,000; Ending Inventory: $7,000. B. Net Purchases: $10,000; Ending Inventory: $15,000. C. Net Purchases: $9,000; Ending Inventory: $6,000.
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This note was uploaded on 01/22/2011 for the course MGT 11A taught by Professor Armstrong during the Fall '08 term at UC Davis.

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Fall+2007+Exam+2A - Name Student ID Number Discussion...

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