Question 1

Under which method of inventory costing is the cost flow assumed to be in the reverse order in which the expenditures were made?

Accepted Answer

A)  Average cost 
B)  Last-in, first-out 
C)  First-in, first-out 
D)  Specific identification method 
A)  Average cost 
B)  Last-in, first-out 
C)  First-in, first-out 
D)  Specific identification method

Question 2

Allowance for Doubtful Accounts has an unadjusted balance of $500 at the end of the year, and an analysis of accounts in the customers' ledger indicates doubtful accounts of $15,000.Compute the adjusted balance in the allowance for doubtful accounts?

Accepted Answer

A)  $15,000 
B)  $14,500 
C)  $14,000 
D)  $15,500 
A)  $15,000 
B)  $14,500 
C)  $14,000 
D)  $15,500

Question 3

Lower-of-cost-or-market is a method of inventory valuation.

Accepted Answer

A) True 
 B)False

Question 4

At the end of the current year, Jackson Inc.has an Accounts Receivable balance of $200,000 and Allowance for Doubtful Accounts has a negative balance of $(60,000).What is the net realizable value of the receivables?

Accepted Answer

A)  $60,000 
B)  $260,000 
C)  $200,000 
D)  $140,000 
A)  $60,000 
B)  $260,000 
C)  $200,000 
D)  $140,000

Under which method of inventory costing is the cost flow assumed to be in the reverse order in which the expenditures were made?

Allowance for Doubtful Accounts has an unadjusted balance of $500 at the end of the year, and an analysis of accounts in the customers' ledger indicates doubtful accounts of $15,000.Compute the adjusted balance in the allowance for doubtful accounts?

Lower-of-cost-or-market is a method of inventory valuation.

At the end of the current year, Jackson Inc.has an Accounts Receivable balance of $200,000 and Allowance for Doubtful Accounts has a negative balance of $(60,000).What is the net realizable value of the receivables?

The Role of Accounting in Business

Basic Accounting Systems: Cash Basis

Basic Accounting Systems: Accrual Basis

Accounting for Merchandising Businesses

Internal Control and Cash

Fixed Assets, Natural Resources, and Intangible Assets

Liabilities and Stockholders Equity

Metric Analysis of Financial Statements

Accounting for Manufacturing Operations

Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Costs

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

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Exam 6: Receivables and Inventories

Under which method of inventory costing is the cost flow assumed to be in the reverse order in which the expenditures were made?

Allowance for Doubtful Accounts has an unadjusted balance of $500 at the end of the year, and an analysis of accounts in the customers' ledger indicates doubtful accounts of $15,000.Compute the adjusted balance in the allowance for doubtful accounts?

Lower-of-cost-or-market is a method of inventory valuation.

At the end of the current year, Jackson Inc.has an Accounts Receivable balance of $200,000 and Allowance for Doubtful Accounts has a negative balance of $(60,000).What is the net realizable value of the receivables?

The Role of Accounting in Business

Basic Accounting Systems: Cash Basis

Basic Accounting Systems: Accrual Basis

Accounting for Merchandising Businesses

Internal Control and Cash

Fixed Assets, Natural Resources, and Intangible Assets

Liabilities and Stockholders Equity

Metric Analysis of Financial Statements

Accounting for Manufacturing Operations

Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Costs

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters