Mizzou ACCTCY 2037 - Test 2 Summer 2012 (8 pages)

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Test 2 Summer 2012



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Test 2 Summer 2012

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Pages:
8
School:
University of Missouri
Course:
Acctcy 2037 - Accounting II

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Acct 2037 Exam 2 Summer 2012 100 points 75 minutes HONOR PLEDGE I strive to uphold the University values of respect responsibility discovery and excellence On my honor I pledge that I have neither given nor received unauthorized assistance on this work Name Complete each sentence or statement Possible answers Amortization Average rate of return Capital budgeting Capital Lease Capital rationing Compound interest Conservatism Contract rate Depletion Depreciation Double declining balance FIFO FOB destination FOB shipping point Functional Goodwill Lessee Lessor Leverage LIFO Market rate Moving Average Mutually exclusive Net present value Operating Lease Payback Periodic system Perpetual system Physical Software production costs Specific ID method Sum of the years digits Sunk costs Underestimation 1 Under the FIFO cost flow assumption the company includes the earliest costs in the cost of goods sold as it sells the products leaving the latest costs in ending inventory 2 The concept of conservatism holds that a company should apply GAAP in such a way that there is little chance that it will overstate its income or its assets 3 Mutually exclusive are proposals that accomplish the same thing so that when one proposal is selected the others are not 4 Depletion is the portion of the cost of a natural resource that the company allocates as an expense to each accounting period over the asset s service life 5 the lessee A n operating lease does not transfer the risks and benefits of ownership from the lessor to True False Indicate whether the sentence or statement is true or false T 6 In the lower of cost or market method when the selling price of the company s inventory falls below the cost of inventory they write down the inventory on the balance sheet to the market value F 7 another The payback period is a good measure for evaluating one capital expenditure proposal against T 8 The average rate of return on investment is the average return on investment per year per dollar



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