ACCT 310 ACCT310 Quiz 2 Answers (Fall 2017) 100% Correct - UMUC

ACCT 310 Intermediate Accounting I Quiz 2 Answers  (Fall 2017) 100% Correct

1. Lower-of-cost-or-market

2. Colby invests $75,000 in a 3-year certificate of deposit earning 2% at his local bank. Which time value concept would be used to determine the maturity value of the certificate?

3. Jessie Co. received merchandise on consignment. As of January 31, Jessie included the goods in inventory, but did not record the transaction. The effect of this on its financial statements for January 31 would be

4. Net realizable value is

5. Caitlin Company had a gross profit of $620,000, total purchases of $840,000, and an ending inventory of $480,000 in its first year of operations as a retailer. Caitlin's sales in its first year must have been

6. Pear Inc. has the following information related to an item in its ending inventory. Tree Top has a cost of $25, a replacement cost of $23, a net realizable value of $27, and a normal profit margin of $3. What is the final lower-of-cost-or-market inventory value for Tree Top?

7. What is the effect of a $75,000 overstatement of last year's inventory on current years ending retained earning balance?

8. Which factor would be greater — the present value of $1 for 10 periods at 6% per period or the future value of $1 for 10 periods at 6% per period?

9. Why are inventories included in the computation of net income?

10. Goods on consignment are

11. On June 1, 2017, Nicholas Company sold some equipment to Aaron Company. The two companies entered into an installment sales contract at a rate of 8%. The contract required 8 equal annual payments with the first payment due on June 1, 2017. What type of compound interest table is appropriate for this situation?

12. The average days to sell inventory is computed by dividing

13. What is the main difference between an ordinary annuity and an annuity due?

14. Which table would be used to determine what amount was deposited three years ago to provide $1,000 today?

15. Goods in transit which are shipped f.o.b. shipping point should be