ACCOUNTING

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Name: __________________________ Date: _____________

You must complete both Part 1 (Wiley Plus) & Part 2 of Quiz 2

20 Questions: 12 MC Questions; 7 Problems; 1 essay

Ch 5 – 6 – 7 … Timed Exam: 3 hours

UMUC – ACCT 220 Due April 24, 2013 This exam is to be completed without the assistance of any other person.

You may use only the resources provided by your instructor for this class.

** Save this file and include your name in the file name: Steve_Harvey_Quiz_2

You may create an Excel and / or Word File for your work. Please verify that each page prints out

formatted with your name and page number on the page. Excel files should show gridlines.

Excel ‘page format’ has options for grid lines (sheet) and headers/footers.

At a minimum, use print preview so you can see how the work will print out.

I pledge on my honor that I have not given or received any unauthorized assistance on this

examination. In addition, I pledge that I will not disclose to, or discuss the contents of this

examination with, students who have not taken it.

_________________________________________________________________________

Signed

12 MC (place answer on the line); 1 essays , 7 problem presentation questions (may require JEs or

financial statement presentations)

NOTE: some problems have several ‘calculation’ presentations or tasks

100 total points; 100 points = 100%

For all questions, assume no other transactions or activities have taken place during the period except

as noted

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Prepare and present calculations for partial credits for questions with calculations and presentations.

Name: __________________________ Date: _____________

1. The IASB and FASB are working on a converged statement of financial position using

the headings of

A) assets, liabilities, and owner’s equity. Answer: ________

B) revenues and expenses.

C) assets, liabilities, revenues, expenses and owner’s equity.

D) operating, investing, and financing.

2. The only acceptable cost flow assumptions under IFRS are

A) FIFO and LIFO. Answer: ________

B) FIFO and average.

C) LIFO and average.

D) FIFO, LIFO and average.

3. On July 9, Serta Company sells goods on credit to Walmart Company for $3,000, terms

1/10, n/60. Serta receives payment on July 18. The entry by Serta on July 18 is:

Answer: ________

A) Cash 3,000

Accounts Receivable 3,000

B) Cash 3,000

Sales Discounts 30

Accounts Receivable 2,970

C) Cash 2,970

Sales Discounts 30

Accounts Receivable 3,000

D) Cash 3,030

Cash 30

Accounts Receivable 3,000

4. In a perpetual inventory system, the Cost of Goods Sold account is used

A) only when a cash sale of merchandise occurs. Answer: ________

B) only when a credit sale of merchandise occurs.

C) only when a sale of merchandise occurs.

D) whenever there is a sale of merchandise or a return of merchandise sold.

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5. As a result of a thorough physical inventory, Hallmark Company determined that it had

inventory worth $270,000 at December 31, 2012. This count did not take into

consideration the following facts: American Greetings Consignment currently has goods

worth $47,000 on its sales floor that belong to Hallmark but are being sold on

consignment by American Greetings. The selling price of these goods is $75,000.

Hallmark purchased $22,000 of goods that were shipped on December 27. FOB

destination, that will be received by Hallmark on January 3. Determine the correct

amount of inventory that Hallmark should report.

A) $270,000. Answer: ________

B) $290,000.

C) $317,000.

D) $337,000.

6. Borders Bookstore had 500 units on hand at January 1, costing $18 each. Purchases and

sales during the month of January were as follows:

Date Purchases Sales

Jan. 14 375 @ $28

17 250 @ $20

25 250 @ $22

29 260 @ $32

Borders does not maintain perpetual inventory records. According to a physical count,

365 units were on hand at January 31.

The cost of the inventory at January 31, under the FIFO method is:

Answer: ________

A) $6,570.

B) $7,300.

C) $7,800.

D) $8,030.

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7. Borders Bookstore had 500 units on hand at January 1, costing $18 each. Purchases and

sales during the month of January were as follows:

Date Purchases Sales

Jan. 14 375 @ $28

17 250 @ $20

25 250 @ $22

29 260 @ $32

Borders does not maintain perpetual inventory records. According to a physical count,

365 units were on hand at January 31.

The cost of the inventory at January 31, under the LIFO method is:

Answer: ________

A) $6,570.

B) $7,300.

C) $7,800.

D) $8,030.

8. A company just starting business made the following four inventory purchases in June:

June 1 150 units $ 390

June 10 200 units 585

June 15 200 units 630

June 28 150 units 510

$2,115

A physical count of merchandise inventory on June 30 reveals that there are 200 units

on hand. Using the LIFO inventory method, the value of the ending inventory on June

30 is

Answer: ________

A) $536.

B) $668.

C) $1,447.

D) $1,564.

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9. A company just starting business made the following four inventory purchases in June:

June 1 150 units $ 390

June 10 200 units 585

June 15 200 units 630

June 28 150 units 510

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