Question 1

Which of the following items should be included in inventory at the balance sheet date?

Accepted Answer

A) goods in transit which were purchased FOB 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) goods in transit which were purchased FOB shipping point 
A) goods in transit which were purchased FOB 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) goods in transit which were purchased FOB shipping point

Question 2

If two factories produce the exact same product having the same costs, and factory costs are completely allocated to the individual products, the factory operating at 80% capacity (while the other operates at 100% capacity)

Accepted Answer

A) would have a lower rate of cost allocation to each unit of production. 
B) would have a higher rate of cost allocation to each unit of production. 
C) would have the same rate of cost allocation to each unit of production as the 100% capacity operation. 
D) would be operating at a loss, because of unused capacity. 
A) would have a lower rate of cost allocation to each unit of production. 
B) would have a higher rate of cost allocation to each unit of production. 
C) would have the same rate of cost allocation to each unit of production as the 100% capacity operation. 
D) would be operating at a loss, because of unused capacity.

Question 3

The 2017 financial statements of Barclay Ltd.reported beginning inventory of $130,000, ending inventory of $140,000, and cost of goods sold of $650,000 for the year.To one decimal, Barclay's inventory turnover ratio for 2017 is

Accepted Answer

A) 2.9 times. 
B) 3.4 times. 
C) 4.0 times. 
D) 4.8 times. 
A) 2.9 times. 
B) 3.4 times. 
C) 4.0 times. 
D) 4.8 times.

Question 4

Which of the following statements regarding borrowing costs is correct?

Accepted Answer

A) Neither ASPE nor IFRS usually require disclosure of these items. 
B) They are usually amortized until the majority of the underlying products have been sold. 
C) They are usually treated as period costs if they are incurred to bring inventories to a condition ready for sale. 
D) If interest is capitalized, ASPE requires this policy and the amount capitalized to be disclosed. 
A) Neither ASPE nor IFRS usually require disclosure of these items. 
B) They are usually amortized until the majority of the underlying products have been sold. 
C) They are usually treated as period costs if they are incurred to bring inventories to a condition ready for sale. 
D) If interest is capitalized, ASPE requires this policy and the amount capitalized to be disclosed.

Question 5

Which of the following best describes the concept of standard costs?

Accepted Answer

A) They are the costs that should be incurred per unit of finished goods inventory. 
B) They are the costs that are actually incurred per unit of finished goods inventory. 
C) When using standard costs, unallocated overhead is capitalized. 
D) Standard costs are always acceptable for reporting purposes. 
A) They are the costs that should be incurred per unit of finished goods inventory. 
B) They are the costs that are actually incurred per unit of finished goods inventory. 
C) When using standard costs, unallocated overhead is capitalized. 
D) Standard costs are always acceptable for reporting purposes.

Question 6

Enviro Corporation had the following items as inventory as at December 31, 2017:   Assuming Enviro uses a perpetual inventory system, and that none of the inventory items can be grouped together for accounting purposes.The year-end adjusting entry should include a charge to cost of goods sold of

Accepted Answer

A) $223. 
B) $188. 
C) $35. 
D) $0. 
A) $223. 
B) $188. 
C) $35. 
D) $0.

Question 7

On June 25, Veranda Corp.accepted delivery of merchandise which it purchased on account.As of June 30, Veranda had NOT recorded the transaction nor included the merchandise in its inventory.The effect of this on Veranda's June 30 balance sheet would be

Accepted Answer

A) assets and shareholders' equity were overstated but liabilities were not affected. 
B) shareholders' equity was the only item affected by the omission. 
C) assets, liabilities, and shareholders' equity were understated. 
D) assets and liabilities were understated but shareholders' equity was not affected. 
A) assets and shareholders' equity were overstated but liabilities were not affected. 
B) shareholders' equity was the only item affected by the omission. 
C) assets, liabilities, and shareholders' equity were understated. 
D) assets and liabilities were understated but shareholders' equity was not affected.

Which of the following items should be included in inventory at the balance sheet date?

If two factories produce the exact same product having the same costs, and factory costs are completely allocated to the individual products, the factory operating at 80% capacity (while the other operates at 100% capacity)

The 2017 financial statements of Barclay Ltd.reported beginning inventory of $130,000, ending inventory of $140,000, and cost of goods sold of $650,000 for the year.To one decimal, Barclay's inventory turnover ratio for 2017 is

Which of the following statements regarding borrowing costs is correct?

Which of the following best describes the concept of standard costs?

Enviro Corporation had the following items as inventory as at December 31, 2017: Assuming Enviro uses a perpetual inventory system, and that none of the inventory items can be grouped together for accounting purposes.The year-end adjusting entry should include a charge to cost of goods sold of

On June 25, Veranda Corp.accepted delivery of merchandise which it purchased on account.As of June 30, Veranda had NOT recorded the transaction nor included the merchandise in its inventory.The effect of this on Veranda's June 30 balance sheet would be

The Canadian Financial Reporting Environment

Conceptual Framework Underlying Financial Reporting

The Accounting Information System and Measurement Issues

Reporting Financial Performance

Financial Position and Cash Flows

Revenue Recognition

Cash and Receivables

Investments

Property, Plant, and Equipment: Accounting Model Basics

Depreciation, Impairment, and Disposition

Intangible Assets and Goodwill

Non-Financial Andcurrent Liabilities

Long-Term Financial Liabilities

Shareholders Equity

Complex Financial Instruments

Earnings Per Share

Income Taxes

Pensions and Other Employee Future Benefits

Leases

Accounting Changes and Error Analysis

Statement of Cash Flows

Other Measurement and Disclosure Issues

Filters

Exam 8: Inventory

Which of the following items should be included in inventory at the balance sheet date?

If two factories produce the exact same product having the same costs, and factory costs are completely allocated to the individual products, the factory operating at 80% capacity (while the other operates at 100% capacity)

The 2017 financial statements of Barclay Ltd.reported beginning inventory of $130,000, ending inventory of $140,000, and cost of goods sold of $650,000 for the year.To one decimal, Barclay's inventory turnover ratio for 2017 is

Which of the following statements regarding borrowing costs is correct?

Which of the following best describes the concept of standard costs?

Enviro Corporation had the following items as inventory as at December 31, 2017: Assuming Enviro uses a perpetual inventory system, and that none of the inventory items can be grouped together for accounting purposes.The year-end adjusting entry should include a charge to cost of goods sold of

On June 25, Veranda Corp.accepted delivery of merchandise which it purchased on account.As of June 30, Veranda had NOT recorded the transaction nor included the merchandise in its inventory.The effect of this on Veranda's June 30 balance sheet would be

The Canadian Financial Reporting Environment

Conceptual Framework Underlying Financial Reporting

The Accounting Information System and Measurement Issues

Reporting Financial Performance

Financial Position and Cash Flows

Revenue Recognition

Cash and Receivables

Investments

Property, Plant, and Equipment: Accounting Model Basics

Depreciation, Impairment, and Disposition

Intangible Assets and Goodwill

Non-Financial Andcurrent Liabilities

Long-Term Financial Liabilities

Shareholders Equity

Complex Financial Instruments

Earnings Per Share

Income Taxes

Pensions and Other Employee Future Benefits

Leases

Accounting Changes and Error Analysis

Statement of Cash Flows

Other Measurement and Disclosure Issues

Filters