Question 1

Footnotes are used with what concept or principle of accounting?

Accepted Answer

The answer of Footnotes are used with what concept or...

Question 2

Compare the effects of the different costing methods on the financial statements
-Consistency is mandated by:

Accepted Answer

A)  CRA. 
B)  the OSC. 
C)  IFRS and Canadian ASPE. 
D)  the federal government. 
E)  the provincial government. 
A)  CRA. 
B)  the OSC. 
C)  IFRS and Canadian ASPE. 
D)  the federal government. 
E)  the provincial government.

Question 3

Which of the following is probably NOT used when taking a physical inventory?

Accepted Answer

A)  Pre-numbered count sheets 
B)  Tags to show what inventory has been counted 
C)  Maps of the location of the inventory 
D)  Random counts of items 
E)  Prewritten inventory instructions 
A)  Pre-numbered count sheets 
B)  Tags to show what inventory has been counted 
C)  Maps of the location of the inventory 
D)  Random counts of items 
E)  Prewritten inventory instructions

Question 4

GAAP allows two different kinds of inventory costing methods.

Accepted Answer

A) True 
 B)False

Question 5

2012 ending inventory is $27,000; 2013 ending inventory is $19,000;2014 ending inventory is $21,000; and cost of goods sold is $63,500 for 2014 and $65,900 for 2013. What is the inventory turnover for 2013 and 2014? Has the inventory turnover improved?

Accepted Answer

2013: 65,900 / (27,000+19,000)

Question 6

Under the average cost method, the flow of goods through the accounting records will:

Accepted Answer

A)  be the opposite of the physical flow of goods through the business. 
B)  closely match the physical flow of goods through the business. 
C)  exactly match the physical flow of goods through the business. 
D)  have no relationship to the physical flow of goods through the business. 
E)  sometimes match the physical flow of goods through the business. 
A)  be the opposite of the physical flow of goods through the business. 
B)  closely match the physical flow of goods through the business. 
C)  exactly match the physical flow of goods through the business. 
D)  have no relationship to the physical flow of goods through the business. 
E)  sometimes match the physical flow of goods through the business.

Question 7

Brandon Company has the following list of inventory:
   
Under specific-identification, what is Brandon's cost of goods sold if EOR and CIS were not sold during the current period?

Accepted Answer

The answer of Brandon Company has the following list of...

Question 8

Under the FIFO method, the flow of goods through the accounting records will:

Accepted Answer

A)  be nearly the opposite of the physical flow of goods through the business. 
B)  closely match the physical flow of goods through the business. 
C)  exactly match the physical flow of goods through the business. 
D)  have no relationship to the physical flow of goods through the business. 
E)  sometimes match the physical flow of goods through the business. 
A)  be nearly the opposite of the physical flow of goods through the business. 
B)  closely match the physical flow of goods through the business. 
C)  exactly match the physical flow of goods through the business. 
D)  have no relationship to the physical flow of goods through the business. 
E)  sometimes match the physical flow of goods through the business.

Question 9

A new car lot would probably cost its inventory using what method?

Accepted Answer

specific-i

Question 10

What is the method of valuing inventory that is based on the costs for each individual item?

Accepted Answer

specific c

Question 11

Compare the effects of the different costing methods on the financial statements
-When inventory costs are rising, what is the income statement effect if a company uses the average cost method?

Accepted Answer

This will result in

Question 12

If ending inventory in Period 1 is overstated, gross profit in Period 2 is __________.

Accepted Answer

The answer of If ending inventory in Period 1 is...

Question 13

Compare the effects of the different costing methods on the financial statements
-When inventory prices are decreasing, what is the effect on Inventory, Cost of Goods Sold ,and Net Income under the FIFO method?

Accepted Answer

FIFO results in the lowest end

Question 14

The objective of inventory tracking is to allocate the cost of goods available for sale between the cost of units sold and the cost of unsold inventory.

Accepted Answer

A) True 
 B)False

Question 15

If the actual inventory count determines an inventory value of $350 while the perpetual inventory records
show a value of $339, what is the adjusting entry for the $11?

Accepted Answer

Debit Inventory $11;

Question 16

An inventory layer is synonymous with a separate:

Accepted Answer

A)  sale of merchandise. 
B)  purchase of merchandise. 
C)  return of merchandise. 
D)  customer return of merchandise. 
E)  discount of goods from the supplier. 
A)  sale of merchandise. 
B)  purchase of merchandise. 
C)  return of merchandise. 
D)  customer return of merchandise. 
E)  discount of goods from the supplier.

Question 17

What does a manufacturer's goods available for sell represent?

Accepted Answer

finished g

Question 18

Compare the effects of the different costing methods on the financial statements
-In order to attract investors and borrow on attractive terms, what method would a company use in times when inventory costs are rising?

Accepted Answer

The answer of Compare the effects of the different costing...

Question 19

Compare the effects of the different costing methods on the financial statements
-In order to pay the least income tax possible in periods of constant costs, the company should use which of the following inventory costing methods?

Accepted Answer

A)  FIFO 
B)  Perpetual 
C)  Average cost 
D)  Periodic 
E)  Any method, as constant costs have no effect on net income or taxes for the period 
A)  FIFO 
B)  Perpetual 
C)  Average cost 
D)  Periodic 
E)  Any method, as constant costs have no effect on net income or taxes for the period

Question 20

Aqua Corporation has given you the following inventory figures:
   
Using the gross profit method, calculate the estimated ending inventory to the nearest dollar. Show all calculations.

Accepted Answer

$1,308,725
Calculation:
Goods available

Footnotes are used with what concept or principle of accounting?

Compare the effects of the different costing methods on the financial statements -Consistency is mandated by:

Which of the following is probably NOT used when taking a physical inventory?

GAAP allows two different kinds of inventory costing methods.

2012 ending inventory is $27,000; 2013 ending inventory is $19,000;2014 ending inventory is $21,000; and cost of goods sold is $63,500 for 2014 and $65,900 for 2013. What is the inventory turnover for 2013 and 2014? Has the inventory turnover improved?

Under the average cost method, the flow of goods through the accounting records will:

Brandon Company has the following list of inventory: Under specific-identification, what is Brandon's cost of goods sold if EOR and CIS were not sold during the current period?

Under the FIFO method, the flow of goods through the accounting records will:

A new car lot would probably cost its inventory using what method?

What is the method of valuing inventory that is based on the costs for each individual item?

Compare the effects of the different costing methods on the financial statements -When inventory costs are rising, what is the income statement effect if a company uses the average cost method?

If ending inventory in Period 1 is overstated, gross profit in Period 2 is __________.

Compare the effects of the different costing methods on the financial statements -When inventory prices are decreasing, what is the effect on Inventory, Cost of Goods Sold ,and Net Income under the FIFO method?

The objective of inventory tracking is to allocate the cost of goods available for sale between the cost of units sold and the cost of unsold inventory.

If the actual inventory count determines an inventory value of $350 while the perpetual inventory records show a value of $339, what is the adjusting entry for the $11?

An inventory layer is synonymous with a separate:

What does a manufacturer's goods available for sell represent?

Compare the effects of the different costing methods on the financial statements -In order to attract investors and borrow on attractive terms, what method would a company use in times when inventory costs are rising?

Compare the effects of the different costing methods on the financial statements -In order to pay the least income tax possible in periods of constant costs, the company should use which of the following inventory costing methods?

Aqua Corporation has given you the following inventory figures: Using the gross profit method, calculate the estimated ending inventory to the nearest dollar. Show all calculations.

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Ethics, Internal Control, and Cash

Accounting for a Merchandising Business

Sales and Receivables

Long-Term Assets

Current Liabilities and Long-Term Debt

Corporations: Share Capital and Retained Earnings

The Cash Flow Statement

Financial Statement Analysis

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Exam 6: Inventory

Footnotes are used with what concept or principle of accounting?

Compare the effects of the different costing methods on the financial statements -Consistency is mandated by:

Which of the following is probably NOT used when taking a physical inventory?

GAAP allows two different kinds of inventory costing methods.

2012 ending inventory is $27,000; 2013 ending inventory is $19,000;2014 ending inventory is $21,000; and cost of goods sold is $63,500 for 2014 and $65,900 for 2013. What is the inventory turnover for 2013 and 2014? Has the inventory turnover improved?

Under the average cost method, the flow of goods through the accounting records will:

Brandon Company has the following list of inventory: Under specific-identification, what is Brandon's cost of goods sold if EOR and CIS were not sold during the current period?

Under the FIFO method, the flow of goods through the accounting records will:

A new car lot would probably cost its inventory using what method?

What is the method of valuing inventory that is based on the costs for each individual item?

Compare the effects of the different costing methods on the financial statements -When inventory costs are rising, what is the income statement effect if a company uses the average cost method?

If ending inventory in Period 1 is overstated, gross profit in Period 2 is __________.

Compare the effects of the different costing methods on the financial statements -When inventory prices are decreasing, what is the effect on Inventory, Cost of Goods Sold ,and Net Income under the FIFO method?

The objective of inventory tracking is to allocate the cost of goods available for sale between the cost of units sold and the cost of unsold inventory.

If the actual inventory count determines an inventory value of $350 while the perpetual inventory records show a value of $339, what is the adjusting entry for the $11?

An inventory layer is synonymous with a separate:

What does a manufacturer's goods available for sell represent?

Compare the effects of the different costing methods on the financial statements -In order to attract investors and borrow on attractive terms, what method would a company use in times when inventory costs are rising?

Compare the effects of the different costing methods on the financial statements -In order to pay the least income tax possible in periods of constant costs, the company should use which of the following inventory costing methods?

Aqua Corporation has given you the following inventory figures: Using the gross profit method, calculate the estimated ending inventory to the nearest dollar. Show all calculations.

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Ethics, Internal Control, and Cash

Accounting for a Merchandising Business

Sales and Receivables

Long-Term Assets

Current Liabilities and Long-Term Debt

Corporations: Share Capital and Retained Earnings

The Cash Flow Statement

Financial Statement Analysis

Filters