Intermediate Accounting Final Exam Solutions

Intermediate Accounting Final Exam Solutions - Questi on 1...

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Questi on 1 Which of the following does not have an effect on the cost-to-retail ratio when the lower of average cost or market rule is applied to the retail inventory method? Correct Answer:
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Questio n 2 In a periodic inventory system, to what account are purchases debited? Correct Answer: Questio n 3 Which inventory cost flow method more closely matches the current cost of replacing inventory with the cost of goods sold when prices are changing? Correct Answer: Questio n 4 Mark Manufacturing made the following errors in 2008: Ending inventory was understated by $2,000 Beginning inventory was overstated by $6,000 Purchases were understated by $2,000 Reported net income was $15,000. The correct net income was: Correct Answer: Questio n 5 Matthew Corporation reported $9,000 of net income for 2008. The following errors were then discovered in the ending accounting balances: accrued expense was overstated by $2,000 unearned revenue was understated by $3,000 and prepaid expense was overstated by $500 Ignoring income taxes, compute correct 2008 net income.
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Intermediate Accounting Final Exam Solutions - Questi on 1...

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