Question 1

If a company changes its inventory valuation method, the effect of the change on net income should be disclosed in the financial statements.

Accepted Answer

A) True 
 B)False

Question 2

Langer Company has the following inventory information.   Assuming that a perpetual inventory system is used, what is the ending inventory (round all calculations to nearest dollar) under the moving-average cost method?

Accepted Answer

A)  $2,930 
B)  $2,966 
C)  $2,986 
D)  $3,054 
A)  $2,930 
B)  $2,966 
C)  $2,986 
D)  $3,054

Question 3

The expense recognition principle requires that the cost of goods sold be matched against the ending merchandise inventory in order to determine income.

Accepted Answer

A) True 
 B)False

Question 4

Inventories are reported in the current assets section of the balance sheet immediately below receivables.

Accepted Answer

A) True 
 B)False

Question 5

Goods that have been purchased FOB destination but are in transit, should be excluded from a physical count of goods.

Accepted Answer

A) True 
 B)False

Question 6

Fetherston Company's goods in transit at December 31 include:   Which items should be included in Fetherston's inventory at December 31?

Accepted Answer

A)  (2) and (3) 
B)  (1) and (4) 
C)  (1) and (3) 
D)  (2) and (4) 
A)  (2) and (3) 
B)  (1) and (4) 
C)  (1) and (3) 
D)  (2) and (4)

Question 7

During July, the following purchases and sales were made by Big Dan Company. There was no beginning inventory. Big Dan Company uses a perpetual inventory system.   Under the FIFO method, the cost of goods sold for each sale is:

Accepted Answer

The answer of During July, the following purchases and sales...

Question 8

In a manufacturing company, goods that are ready to be sold to customers are referred to as ________________, whereas in a merchandising company they are generally referred to as _______________.

Accepted Answer

finished g

Question 9

Inventory written down under lower-of-cost-or net realizable value may be written back up to original cost in a subsequent period under   IFRS:

Accepted Answer

The answer of Inventory written down under lower-of-cost-or net realizable...

Question 10

Switzer, Inc. has 8 computers which have been part of the inventory for over two years. Each computer cost $600 and originally retailed for $900. At the statement date, each computer has a net realizable value of $400. What value should Switzer, Inc., have for the computers at the end of the year?

Accepted Answer

A)  $2,400. 
B)  $3,200. 
C)  $4,800. 
D)  $7,200. 
A)  $2,400. 
B)  $3,200. 
C)  $4,800. 
D)  $7,200.

Question 11

The cost of goods purchased during a period plus the beginning inventory is the amount of goods ________________ during the period.

Accepted Answer

218availab

Question 12

A company may use more than one inventory costing method concurrently.

Accepted Answer

A) True 
 B)False

Question 13

Two widely used methods of estimating inventories are the ______________ method and the _____________ method.

Accepted Answer

gross prof

Question 14

Shellhammer Company's inventory records show the following data for the month of September:   A physical inventory on September 30 shows 200 units on hand. Calculate the value of ending inventory and cost of goods sold if the company uses FIFO inventory costing and a periodic inventory system.

Accepted Answer

The answer of Shellhammer Company's inventory records show the following...

Question 15

The major IFRS requirements related to accounting for and reporting inventories are

Accepted Answer

A)  the same as GAAP. 
B)  the same as GAAP with a few exceptions. 
C)  completely different from GAAP. 
D)  not comparable to GAAP.
IFRS: 
A)  the same as GAAP. 
B)  the same as GAAP with a few exceptions. 
C)  completely different from GAAP. 
D)  not comparable to GAAP.
IFRS:

Question 16

The accounting principle that requires that the cost flow assumption be consistent with the physical movement of goods is

Accepted Answer

A)  called the expense recognition principle. 
B)  called the consistency principle. 
C)  nonexistent; that is, there is no accounting requirement. 
D)  called the physical flow assumption. 
A)  called the expense recognition principle. 
B)  called the consistency principle. 
C)  nonexistent; that is, there is no accounting requirement. 
D)  called the physical flow assumption.

Question 17

The following information is available for Everett Company at December 31, 2018: beginning inventory $80,000; ending inventory $120,000; cost of goods sold $1,050,000; and sales $1,800,000. Everett's inventory turnover in 2018 is

Accepted Answer

A)  8.7 times. 
B)  10.5 times. 
C)  13.2 times. 
D)  18 times. 
A)  8.7 times. 
B)  10.5 times. 
C)  13.2 times. 
D)  18 times.

Question 18

The requirement that companies use the same cost flow assumption of all goods of a similar nature is found in   IFRS:

Accepted Answer

The answer of The requirement that companies use the same...

Question 19

The following information is available for Yancey Company:
Beginning inventory 600 units at $4
First purchase 900 units at $6
Second purchase 500 units at $7.20
Assume that Yancey uses a periodic inventory system and that there are 700 units left at the end of the month.
Instructions
Compute the cost of ending inventory under the
(a) FIFO method.
(b) LIFO method.

Accepted Answer

The answer of The following information is available for Yancey...

Question 20

The Vogelson Company accumulates the following cost and net realizable valve data at December 31.   What is the lower-of-cost-or-net realizable value of the inventory?

Accepted Answer

The answer of The Vogelson Company accumulates the following cost...

If a company changes its inventory valuation method, the effect of the change on net income should be disclosed in the financial statements.

Langer Company has the following inventory information. Assuming that a perpetual inventory system is used, what is the ending inventory (round all calculations to nearest dollar) under the moving-average cost method?

The expense recognition principle requires that the cost of goods sold be matched against the ending merchandise inventory in order to determine income.

Inventories are reported in the current assets section of the balance sheet immediately below receivables.

Goods that have been purchased FOB destination but are in transit, should be excluded from a physical count of goods.

Fetherston Company's goods in transit at December 31 include: Which items should be included in Fetherston's inventory at December 31?

During July, the following purchases and sales were made by Big Dan Company. There was no beginning inventory. Big Dan Company uses a perpetual inventory system. Under the FIFO method, the cost of goods sold for each sale is:

In a manufacturing company, goods that are ready to be sold to customers are referred to as __, whereas in a merchandising company they are generally referred to as _.

Inventory written down under lower-of-cost-or net realizable value may be written back up to original cost in a subsequent period under IFRS:

Switzer, Inc. has 8 computers which have been part of the inventory for over two years. Each computer cost $600 and originally retailed for $900. At the statement date, each computer has a net realizable value of $400. What value should Switzer, Inc., have for the computers at the end of the year?

The cost of goods purchased during a period plus the beginning inventory is the amount of goods ________________ during the period.

A company may use more than one inventory costing method concurrently.

Two widely used methods of estimating inventories are the __ method and the _ method.

Shellhammer Company's inventory records show the following data for the month of September: A physical inventory on September 30 shows 200 units on hand. Calculate the value of ending inventory and cost of goods sold if the company uses FIFO inventory costing and a periodic inventory system.

The major IFRS requirements related to accounting for and reporting inventories are

The accounting principle that requires that the cost flow assumption be consistent with the physical movement of goods is

The following information is available for Everett Company at December 31, 2018: beginning inventory $80,000; ending inventory $120,000; cost of goods sold $1,050,000; and sales $1,800,000. Everett's inventory turnover in 2018 is

The requirement that companies use the same cost flow assumption of all goods of a similar nature is found in IFRS:

The Vogelson Company accumulates the following cost and net realizable valve data at December 31. What is the lower-of-cost-or-net realizable value of the inventory?

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions

Statement of Cash Flows

Financial Statement Analysis

Specimen Financial Statements: Apple Inc

Specimen Financial Statements: Pepsico, Inc

Specimen Financial Statements: the Coca-Cola Company

Specimen Financial Statements: Amazoncom, Inc

Specimen Financial Statements: Wal-Mart Stores, Inc

Filters

Exam 6: Inventories

If a company changes its inventory valuation method, the effect of the change on net income should be disclosed in the financial statements.

Langer Company has the following inventory information. Assuming that a perpetual inventory system is used, what is the ending inventory (round all calculations to nearest dollar) under the moving-average cost method?

The expense recognition principle requires that the cost of goods sold be matched against the ending merchandise inventory in order to determine income.

Inventories are reported in the current assets section of the balance sheet immediately below receivables.

Goods that have been purchased FOB destination but are in transit, should be excluded from a physical count of goods.

Fetherston Company's goods in transit at December 31 include: Which items should be included in Fetherston's inventory at December 31?

During July, the following purchases and sales were made by Big Dan Company. There was no beginning inventory. Big Dan Company uses a perpetual inventory system. Under the FIFO method, the cost of goods sold for each sale is:

In a manufacturing company, goods that are ready to be sold to customers are referred to as ________________, whereas in a merchandising company they are generally referred to as _______________.

Inventory written down under lower-of-cost-or net realizable value may be written back up to original cost in a subsequent period under IFRS:

Switzer, Inc. has 8 computers which have been part of the inventory for over two years. Each computer cost $600 and originally retailed for $900. At the statement date, each computer has a net realizable value of $400. What value should Switzer, Inc., have for the computers at the end of the year?

The cost of goods purchased during a period plus the beginning inventory is the amount of goods ________________ during the period.

A company may use more than one inventory costing method concurrently.

Two widely used methods of estimating inventories are the ______________ method and the _____________ method.

Shellhammer Company's inventory records show the following data for the month of September: A physical inventory on September 30 shows 200 units on hand. Calculate the value of ending inventory and cost of goods sold if the company uses FIFO inventory costing and a periodic inventory system.

The major IFRS requirements related to accounting for and reporting inventories are

The accounting principle that requires that the cost flow assumption be consistent with the physical movement of goods is

The following information is available for Everett Company at December 31, 2018: beginning inventory $80,000; ending inventory $120,000; cost of goods sold $1,050,000; and sales $1,800,000. Everett's inventory turnover in 2018 is

The requirement that companies use the same cost flow assumption of all goods of a similar nature is found in IFRS:

The Vogelson Company accumulates the following cost and net realizable valve data at December 31. What is the lower-of-cost-or-net realizable value of the inventory?

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions

Statement of Cash Flows

Financial Statement Analysis

Specimen Financial Statements: Apple Inc

Specimen Financial Statements: Pepsico, Inc

Specimen Financial Statements: the Coca-Cola Company

Specimen Financial Statements: Amazoncom, Inc

Specimen Financial Statements: Wal-Mart Stores, Inc

Filters

In a manufacturing company, goods that are ready to be sold to customers are referred to as __, whereas in a merchandising company they are generally referred to as _.

Two widely used methods of estimating inventories are the __ method and the _ method.