This document provides a study guide for ACC 290 Final Exam with 30 multiple choice questions covering topics like inventory valuation, internal controls, accounting cycle, financial statements, and cash flows. It also includes brief introductory information on Apple diversifying into software and the importance of R&D, marketing, and product diversification for competitive advantage.

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Besides the hardware business of computer the apple is also focus on
developing application software operating system, and all such software
application which added the value of its product. The management is of
the view that R&D, integrated marketing channels and its product
diversification is the source of competitive edge against rivals of its
industry.
Paid $15,000 for utilities.
Paid $6,000 in dividends.
Collected $245,000 from customers.
Question 2

2. Which of the following describes the classification and normal balance
of the Unearned Rent Revenue account?
Question 3
Posting
Question 4
The following is selected information from L Corporation for the fiscal
year ending October 31, 2014.
Cash received from customers $300,000
Revenue earned 390,000
Cash paid for expenses 170,000
Cash paid for computers on November 1, 2013 that will be used for 3
years 48,000
Expenses incurred including any depreciation 216,000
Question 5
La More Company had the following transactions during 2013.

3. • Sales of $4,500 on account
• Collected $2,000 for services to be performed in 2014
• Paid $1,325 cash in salaries
• Purchased airline tickets for $250 in December for a trip to take place
in 2014
Question 6
Which one of the following is not a justification for adjusting entries?
Question 7
The Vintage Laundry Company purchased $6,500 worth of laundry
supplies on June 2 and recorded the purchase as an asset. On June 30, an
inventory of the laundry supplies indi-cated only $1,000 on hand. The
adjusting entry that should be made by the company on June 30 is:
Question 8
Similarities between International Financial Reporting Standards (IFRS)
and U.S. GAAP in-clude all of the following except

4. Question 9
Conway Company purchased merchandise inventory with an invoice
price of $9,000 and credit terms of 2/10, n/30. What is the net cost of the
goods if Conway Company pays within the discount period?
Question 10
Stan’s Market recorded the following events involving a recent purchase
of inventory:
Received goods for $90,000, terms 2/10, n/30.
Returned $1,800 of the shipment for credit.
Paid $450 freight on the shipment.
Paid the invoice within the discount period.
Question 11
Financial information is presented below:
Operating expenses $36,000
Sales revenue 150,000

5. Cost of goods sold 105,000
Question 12
At December 31, 2014 Mohling Company’s inventory records indicated
a balance of $602,000. Upon further investigation it was determined that
this amount included the following:
▪ $112,000 in inventory purchases made by Mohling shipped from the
seller 12/27/14 terms FOB destination, but not due to be received until
January 2nd
▪ $74,000 in goods sold by Mohling with terms FOB destination on
December 27th. The goods are not expected to reach their destination
until January 6th
▪ $6,000 of goods received on consignment from Dollywood Company
Question 13
Olympus Climbers Company has the following inventory data:
July 1 Beginning inventory 20 units at $19 $380

6. 7 Purchases 70 units at $20 1,400
22 Purchases 10 units at $22 220
$2,000
A physical count of merchandise inventory on July 30 reveals that there
are 32 units on hand. Using the FIFO inventory method, the amount
allocated to cost of goods sold for July is
Question 14
Jenks Company developed the following information about its
inventories in applying the lower of cost or market (LCM) basis in
valuing inventories:
Product Cost Market
A $57,000 $60,000
B 40,000 38,000
C 80,000 81,000
Question 15

7. Nilson Company gathered the following reconciling information in
preparing its August bank reconciliation:
Cash balance per books, 8/31 $21,000
Deposits in transit 900
Notes receivable and interest collected by bank 5,100
Bank charge for check printing 120
Outstanding checks 12,000
NSF check 1,020
Question 16
Which of the following is not a basic principle of cash management?
Question 17
Use the following data to determine the total dollar amount of assets to
be classified as property, plant, and equipment.
Eddy Auto Supplies
Balance Sheet

8. December 31, 2014
Cash $84,000 Accounts payable $110,000
Accounts receivable 80,000 Salaries and wages payable 20,000
Inventory 140,000 Mortgage payable 180,000
Prepaid insurance 60,000 Total liabilities $310,000
Question 18
Accounting information is relevant to business decisions because it
Question 19
Howard Company had a transaction that caused a $5,000 increase in
both assets and total liabilities. This transaction could have been a(n)
Question 20
Can financial statements be prepared directly from the adjusted trial
balance?
Question 21

9. Which trial balance will consist of the greatest number of accounts?
Question 22
All of the following are required steps in the accounting cycle except:
Question 23
A sales discount does not
Question 24
American Importers reports net income of $50,000 and cost of goods
sold of $450,000. If the company’s gross profit rate was 40%, net sales
were
Question 25
The manager of Weiser is given a bonus based on net income before
taxes. The net income after taxes is $35,700 for FIFO and $29,400 for

10. LIFO. The tax rate is 30%. The bonus rate is 20%. How much higher is
the manager's bonus if FIFO is adopted instead of LIFO?
Question 26
Classic Floors has the following inventory data:
July 1 Beginning inventory 15 units at $6.00
5 Purchases 60 units at $6.60
14 Sale 40 units
21 Purchases 30 units at $7.20
30 Sale 28 units
Assuming that a perpetual inventory system is used, what is the cost of
goods sold on a LIFO basis for July?
Question 27
Classic Floors has the following inventory data:
July 1 Beginning inventory 15 units at $6.00

11. 5 Purchases 60 units at $6.60
14 Sale 40 units
21 Purchases 30 units at $7.20
30 Sale 28 units
Assuming that a perpetual inventory system is used, what is the value of
ending inventory on a LIFO basis for July?
Question 28
Which of the following is not one of the main factors that contribute to
fraudulent activity?
Question 29
What is the rationale for the internal control principle, segregation of
duties?
Question 30
Under IFRS