Question 1

The buyer must include goods purchased FOB shipping point in its inventory account if the goods are still in transit.

Accepted Answer

A) True 
 B)False

Question 2

Readers.com uses a perpetual inventory system.   If Readers.com uses the moving average method, how much is ending inventory on February 28?

Accepted Answer

A) $300 
B) $306 
C) $312 
D) $318 
A) $300 
B) $306 
C) $312 
D) $318

Question 3

Accountants define the market value of inventory as its .

Accepted Answer

The answer of Accountants define the market value of inventory...

Question 4

Which method assigns the same cost to all units whether sold or left in ending inventory?

Accepted Answer

A) Specific identification 
B) Weighted average cost 
C) FIFO 
D) LIFO 
A) Specific identification 
B) Weighted average cost 
C) FIFO 
D) LIFO

Question 5

Zebra Company overstated its December 31, 2014 inventory by $5,200.Which statement is true concerning
Zebra's financial statement amounts for 2014?

Accepted Answer

A) Working capital is understated. 
B) The current ratio is overstated. 
C) Cost of goods sold is overstated. 
D) Net income is understated. 
A) Working capital is understated. 
B) The current ratio is overstated. 
C) Cost of goods sold is overstated. 
D) Net income is understated.

Question 6

The following is from Goldman Inc.'s 2015 income statement.   How much will Goldman report as its cost of goods sold in its 2015 income statement?

Accepted Answer

A) $179,900 
B) $182,300 
C) $186,900 
D) $190,700 
A) $179,900 
B) $182,300 
C) $186,900 
D) $190,700

Question 7

Which of these is not an acceptable inventory costing method under IFRS?

Accepted Answer

A) FIFO 
B) LIFO 
C) Specific Identification 
D) Average cost 
A) FIFO 
B) LIFO 
C) Specific Identification 
D) Average cost

Question 8

Which one of the following accounts most likely would appear on the income statement of a merchandise company, but not on the income statement of a service company?

Accepted Answer

A) Cost of Goods Sold 
B) Selling Expenses 
C) Administrative Expenses 
D) Income Tax Expense 
A) Cost of Goods Sold 
B) Selling Expenses 
C) Administrative Expenses 
D) Income Tax Expense

Question 9

Which method assigns the cost of the most recent items purchased to cost of goods sold?

Accepted Answer

A) Specific identification 
B) Weighted average cost 
C) FIFO 
D) LIFO 
A) Specific identification 
B) Weighted average cost 
C) FIFO 
D) LIFO

Question 10

If a company overstates its ending inventory balance for 2015 by $10,000, and overstates its ending inventory balance for 2014 by $5,000 what are the effects on its net income for 2015 and 2014?

Accepted Answer

The answer of If a company overstates its ending inventory...

Question 11

Quan uses a periodic inventory system.At the end of April, Quan had 20 units on hand.   If Quan uses the LIFO inventory method, how much is inventory on the balance sheet as of April 30?

Accepted Answer

A) $40 
B) $50 
C) $58 
D) $60 
A) $40 
B) $50 
C) $58 
D) $60

Question 12

The excess of the value of a company's inventory stated at FIFO over the value stated at LIFO is called an)
_________________________.

Accepted Answer

The answer of The excess of the value of a...

Question 13

Blenham, Inc.sells merchandise on credit.If a customer pays its balance due after the discount period has passed, what is the effect of the payment on Blenham's accounting equation?

Accepted Answer

A) Assets and stockholders' equity decrease. 
B) Assets and stockholders' equity increase. 
C) Assets decrease and liabilities increase. 
D) No net effect. 
A) Assets and stockholders' equity decrease. 
B) Assets and stockholders' equity increase. 
C) Assets decrease and liabilities increase. 
D) No net effect.

Question 14

If the amount assigned to ending inventory is incorrect,

Accepted Answer

A) The balance sheet is affected, but the income statement is not. 
B) The income statement is affected, but the balance sheet is not. 
C) The balance sheet is affected, but cost of goods sold is not. 
D) Both the balance sheet and the income statement are affected. 
A) The balance sheet is affected, but the income statement is not. 
B) The income statement is affected, but the balance sheet is not. 
C) The balance sheet is affected, but cost of goods sold is not. 
D) Both the balance sheet and the income statement are affected.

Question 15

Purchase discounts decrease the total cost of merchandise acquired.

Accepted Answer

A) True 
 B)False

Question 16

Adam Inc.uses a perpetual inventory system.   If Adam uses the FIFO method, how much is ending inventory on January 31?

Accepted Answer

A) $ 8 
B) $ 12 
C) $ 16 
D) $ 40 
A) $ 8 
B) $ 12 
C) $ 16 
D) $ 40

Question 17

Cost of goods sold represents

Accepted Answer

A) Expired costs during a period and is reported on the income statement. 
B) Unexpired costs and is reported on the balance sheet as an asset. 
C) The cost of goods that will be purchased during the next operating cycle and is reported on the balance sheet as an asset. 
D) Expired costs and is reported on the balance sheet as an expense. 
A) Expired costs during a period and is reported on the income statement. 
B) Unexpired costs and is reported on the balance sheet as an asset. 
C) The cost of goods that will be purchased during the next operating cycle and is reported on the balance sheet as an asset. 
D) Expired costs and is reported on the balance sheet as an expense.

Question 18

When a company using LIFO experiences a partial or complete liquidation of its older, lower-priced inventory, its gross margin will be higher, lower, or unchanged) for the period.

Accepted Answer

The answer of When a company using LIFO experiences a...

Question 19

The inventory turnover ratio is a measure of how many times during a period a company sells off its inventory.

Accepted Answer

A) True 
 B)False

Question 20

Complete the following data taken from the condensed income statements for merchandising companies: Action, Break, & Connors.

Accepted Answer

@#IMG-DLM& OR rearranged in th

The buyer must include goods purchased FOB shipping point in its inventory account if the goods are still in transit.

Readers.com uses a perpetual inventory system. If Readers.com uses the moving average method, how much is ending inventory on February 28?

Accountants define the market value of inventory as its .

Which method assigns the same cost to all units whether sold or left in ending inventory?

Zebra Company overstated its December 31, 2014 inventory by $5,200.Which statement is true concerning Zebra's financial statement amounts for 2014?

The following is from Goldman Inc.'s 2015 income statement. How much will Goldman report as its cost of goods sold in its 2015 income statement?

Which of these is not an acceptable inventory costing method under IFRS?

Which one of the following accounts most likely would appear on the income statement of a merchandise company, but not on the income statement of a service company?

Which method assigns the cost of the most recent items purchased to cost of goods sold?

If a company overstates its ending inventory balance for 2015 by $10,000, and overstates its ending inventory balance for 2014 by $5,000 what are the effects on its net income for 2015 and 2014?

Quan uses a periodic inventory system.At the end of April, Quan had 20 units on hand. If Quan uses the LIFO inventory method, how much is inventory on the balance sheet as of April 30?

The excess of the value of a company's inventory stated at FIFO over the value stated at LIFO is called an) _________________________.

Blenham, Inc.sells merchandise on credit.If a customer pays its balance due after the discount period has passed, what is the effect of the payment on Blenham's accounting equation?

If the amount assigned to ending inventory is incorrect,

Purchase discounts decrease the total cost of merchandise acquired.

Adam Inc.uses a perpetual inventory system. If Adam uses the FIFO method, how much is ending inventory on January 31?

Cost of goods sold represents

When a company using LIFO experiences a partial or complete liquidation of its older, lower-priced inventory, its gross margin will be higher, lower, or unchanged) for the period.

The inventory turnover ratio is a measure of how many times during a period a company sells off its inventory.

Complete the following data taken from the condensed income statements for merchandising companies: Action, Break, & Connors.

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

Filters

Exam 5: Inventories and Cost of Goods Sold

The buyer must include goods purchased FOB shipping point in its inventory account if the goods are still in transit.

Readers.com uses a perpetual inventory system. If Readers.com uses the moving average method, how much is ending inventory on February 28?

Accountants define the market value of inventory as its .

Which method assigns the same cost to all units whether sold or left in ending inventory?

Zebra Company overstated its December 31, 2014 inventory by $5,200.Which statement is true concerning Zebra's financial statement amounts for 2014?

The following is from Goldman Inc.'s 2015 income statement. How much will Goldman report as its cost of goods sold in its 2015 income statement?

Which of these is not an acceptable inventory costing method under IFRS?

Which one of the following accounts most likely would appear on the income statement of a merchandise company, but not on the income statement of a service company?

Which method assigns the cost of the most recent items purchased to cost of goods sold?

If a company overstates its ending inventory balance for 2015 by $10,000, and overstates its ending inventory balance for 2014 by $5,000 what are the effects on its net income for 2015 and 2014?

Quan uses a periodic inventory system.At the end of April, Quan had 20 units on hand. If Quan uses the LIFO inventory method, how much is inventory on the balance sheet as of April 30?

The excess of the value of a company's inventory stated at FIFO over the value stated at LIFO is called an) _________________________.

Blenham, Inc.sells merchandise on credit.If a customer pays its balance due after the discount period has passed, what is the effect of the payment on Blenham's accounting equation?

If the amount assigned to ending inventory is incorrect,

Purchase discounts decrease the total cost of merchandise acquired.

Adam Inc.uses a perpetual inventory system. If Adam uses the FIFO method, how much is ending inventory on January 31?

Cost of goods sold represents

When a company using LIFO experiences a partial or complete liquidation of its older, lower-priced inventory, its gross margin will be higher, lower, or unchanged) for the period.

The inventory turnover ratio is a measure of how many times during a period a company sells off its inventory.

Complete the following data taken from the condensed income statements for merchandising companies: Action, Break, & Connors.

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

Filters