Question 1

When inventory is misstated, its presentation lacks?

Accepted Answer

A)  Relevance. 
B)  Faithful representation. 
C)  Comparability. 
D)  All of the choices are correct. 
A)  Relevance. 
B)  Faithful representation. 
C)  Comparability. 
D)  All of the choices are correct.

Question 2

Both merchandising and manufacturing companies normally have

Accepted Answer

A) True 
 B)False

Question 3

Why are inventories included in the computation of net income?

Accepted Answer

A)  To determine cost of goods sold. 
B)  To determine sales revenue. 
C)  To determine merchandise returns. 
D)  Inventories are not included in the computation of net income. 
A)  To determine cost of goods sold. 
B)  To determine sales revenue. 
C)  To determine merchandise returns. 
D)  Inventories are not included in the computation of net income.

Question 4

When using a perpetual inventory system, freight charges on goods purchased are debited to Freight-In.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following items should be included in a company's inventory at the statement of financial position date?

Accepted Answer

A)  Goods in transit which were purchased F.o.b. destination. 
B)  Goods received from another company for sale on consignment. 
C)  Goods sold to a customer which are being held for the customer to call for at his or her convenience. 
D)  None of these are correct. 
A)  Goods in transit which were purchased F.o.b. destination. 
B)  Goods received from another company for sale on consignment. 
C)  Goods sold to a customer which are being held for the customer to call for at his or her convenience. 
D)  None of these are correct.

Question 6

Which of the following accounts is not reported in inventory?

Accepted Answer

A)  Raw materials. 
B)  Equipment. 
C)  Finished goods. 
D)  Supplies. 
A)  Raw materials. 
B)  Equipment. 
C)  Finished goods. 
D)  Supplies.

Question 7

Feine Co. accepted delivery of merchandise which it purchased on account. As of December 31, Feine had recorded the transaction, but did not include the merchandise in its inventory. The effect of this on its financial statements for December 31 would be

Accepted Answer

A)  net income, current assets, and retained earnings were understated. 
B)  net income was correct and current assets were understated. 
C)  net income was understated and current liabilities were overstated. 
D)  net income was overstated and current assets were understated. 
A)  net income, current assets, and retained earnings were understated. 
B)  net income was correct and current assets were understated. 
C)  net income was understated and current liabilities were overstated. 
D)  net income was overstated and current assets were understated.

Question 8

Under IFRS, agricultural inventories, such as wheat, oranges, etc., are recorded at their fair value less estimated selling costs at the point of harvest.

Accepted Answer

A) True 
 B)False

Question 9

Goods in transit, shipped FOB shipping point, are included in the buyer's statement of financial position at the time of delivery to the common carrier.

Accepted Answer

A) True 
 B)False

When inventory is misstated, its presentation lacks?

Both merchandising and manufacturing companies normally have

Why are inventories included in the computation of net income?

When using a perpetual inventory system, freight charges on goods purchased are debited to Freight-In.

Which of the following items should be included in a company's inventory at the statement of financial position date?

Which of the following accounts is not reported in inventory?

Feine Co. accepted delivery of merchandise which it purchased on account. As of December 31, Feine had recorded the transaction, but did not include the merchandise in its inventory. The effect of this on its financial statements for December 31 would be

Under IFRS, agricultural inventories, such as wheat, oranges, etc., are recorded at their fair value less estimated selling costs at the point of harvest.

Goods in transit, shipped FOB shipping point, are included in the buyer's statement of financial position at the time of delivery to the common carrier.

Financial Reporting and Accounting Standards

Conceptual Framework for Financial Reporting

The Accounting Information System

Income Statement and Related Information

Statement of Financial Position and Statement of Cash Flows

Accounting and the Time Value of Money

Cash and Receivables

Inventories: Additional Valuation Issues

Acquisition and Disposition of Property, Plant, and Equipment

Depreciation, Impairments, and Depletion

Intangible Assets

Filters

Exam 8: Valuation of Inventories: a Cost-Basis Approach

When inventory is misstated, its presentation lacks?

Both merchandising and manufacturing companies normally have

Why are inventories included in the computation of net income?

When using a perpetual inventory system, freight charges on goods purchased are debited to Freight-In.

Which of the following items should be included in a company's inventory at the statement of financial position date?

Which of the following accounts is not reported in inventory?

Feine Co. accepted delivery of merchandise which it purchased on account. As of December 31, Feine had recorded the transaction, but did not include the merchandise in its inventory. The effect of this on its financial statements for December 31 would be

Under IFRS, agricultural inventories, such as wheat, oranges, etc., are recorded at their fair value less estimated selling costs at the point of harvest.

Goods in transit, shipped FOB shipping point, are included in the buyer's statement of financial position at the time of delivery to the common carrier.

Financial Reporting and Accounting Standards

Conceptual Framework for Financial Reporting

The Accounting Information System

Income Statement and Related Information

Statement of Financial Position and Statement of Cash Flows

Accounting and the Time Value of Money

Cash and Receivables

Inventories: Additional Valuation Issues

Acquisition and Disposition of Property, Plant, and Equipment

Depreciation, Impairments, and Depletion

Intangible Assets

Filters