Question 1

Liberty,Inc.has the following list of inventory:
 
Under specific-identification,what is Liberty's ending inventory if ICF and CRD are not sold during the current period?

Accepted Answer

A) $34,224 
B) $40,601 
C) $40,953 
D) $51,369 
A) $34,224 
B) $40,601 
C) $40,953 
D) $51,369 A

Question 2

The LEAST widely used of the four inventory valuation methods is:

Accepted Answer

A) FIFO. 
B) LIFO. 
C) average cost. 
D) specific-identification. 
A) FIFO. 
B) LIFO. 
C) average cost. 
D) specific-identification. D

Question 3

Lionworks Enterprises had the following inventory data:
 
Assuming LIFO,what is the cost of goods sold for the July 14 sale?

Accepted Answer

A) $455 
B) $440 
C) $456 
D) $464 
A) $455 
B) $440 
C) $456 
D) $464 D

Question 4

Which is NOT an assurance of footnote disclosures?

Accepted Answer

A) Conservative information 
B) Reliable information 
C) Comparable information 
D) Relevant information 
A) Conservative information 
B) Reliable information 
C) Comparable information 
D) Relevant information

Question 5

Lionworks Enterprises had the following inventory data:
 
Assuming LIFO,what is the cost of goods sold for the July 7 sale?

Accepted Answer

A) $648 
B) $654 
C) $660 
D) $645 
A) $648 
B) $654 
C) $660 
D) $645

Question 6

The inventory turnover ratio is normally computed for:

Accepted Answer

A) a buying season. 
B) the entire year. 
C) each monthly accounting period. 
D) each quarter. 
A) a buying season. 
B) the entire year. 
C) each monthly accounting period. 
D) each quarter.

Question 7

________ helps investors compare a company's financial statements from one period to the next.

Accepted Answer

A) Reliability 
B) Consistency 
C) Objectivity 
D) Entity 
A) Reliability 
B) Consistency 
C) Objectivity 
D) Entity

Question 8

If a company experiences a loss of inventory for fire,there is no way to estimate the inventory.

Accepted Answer

A) True 
 B)False

Question 9

Goods available for sale are $25,000;beginning inventory is $8,000;ending inventory is $12,000;and cost of goods sold is $10,000.The days-sales-in-inventory is closest to:

Accepted Answer

A) 183. 
B) 292. 
C) 365. 
D) 440. 
A) 183. 
B) 292. 
C) 365. 
D) 440.

Question 10

Inventory turnover measures the amount of times a company turns over its beginning inventory during a period.

Accepted Answer

A) True 
 B)False

Question 11

Lionworks Enterprises had the following inventory data:
 
Assuming average cost,what is the cost of goods sold for the July 7 sale?

Accepted Answer

A) $642 
B) $654 
C) $648 
D) $645 
A) $642 
B) $654 
C) $648 
D) $645

Question 12

Goods available for sale are $118,000;beginning inventory is $37,000;ending inventory is $42,000;and cost of goods sold is $77,000.The days-sales-in-inventory is closest to:

Accepted Answer

A) 239. 
B) 187. 
C) 122. 
D) 199. 
A) 239. 
B) 187. 
C) 122. 
D) 199.

Question 13

If the ending inventory in Period 1 is understated,gross profit for Year 1 is:

Accepted Answer

A) overstated. 
B) understated. 
C) not affected. 
D) determined by beginning inventory. 
A) overstated. 
B) understated. 
C) not affected. 
D) determined by beginning inventory.

Question 14

Given the following inventory activity,what is ending inventory using the perpetual LIFO costing method?

Accepted Answer

A) 165 units @ $4.86 
B) 100 units @ $5.00 and 25 units @ $3.50 and 40 units @ $6.00 
C) 125 units @ $4.50 and 40 units @ $6.00 
D) 75 units @ $5.00 and 50 units @ $3.50 and 40 units @ $6.00 
A) 165 units @ $4.86 
B) 100 units @ $5.00 and 25 units @ $3.50 and 40 units @ $6.00 
C) 125 units @ $4.50 and 40 units @ $6.00 
D) 75 units @ $5.00 and 50 units @ $3.50 and 40 units @ $6.00

Question 15

Inventory is the most important asset in a service business.

Accepted Answer

A) True 
 B)False

Question 16

Lionworks Enterprises had the following inventory data:
 
Assuming LIFO,what is the ending inventory after the July 14 sale?

Accepted Answer

A) $232 
B) $214 
C) $228 
D) $208 
A) $232 
B) $214 
C) $228 
D) $208

Question 17

A company has $8,200 in net sales,$1,100 in gross profit,$2,500 in ending inventory and $2,000 in beginning inventory.The company's cost of goods sold is:

Accepted Answer

A) $7,100. 
B) $6,200. 
C) $5,700. 
D) $5,600. 
A) $7,100. 
B) $6,200. 
C) $5,700. 
D) $5,600.

Question 18

Which of the following would NOT cause an error in the physical inventory count on December 31?

Accepted Answer

A) Counting inventory purchased that was shipped by the supplier FOB destination on December 31 
B) Double counting an aisle of product 
C) Counting inventory purchased that was shipped by the supplier FOB shipping point on December 31 
D) Forgetting to tag a section of inventory 
A) Counting inventory purchased that was shipped by the supplier FOB destination on December 31 
B) Double counting an aisle of product 
C) Counting inventory purchased that was shipped by the supplier FOB shipping point on December 31 
D) Forgetting to tag a section of inventory

Question 19

Which of the following would cause inventory shrinkage?

Accepted Answer

A) Employee theft 
B) Spoilage of items 
C) Spills of items 
D) All of the above 
A) Employee theft 
B) Spoilage of items 
C) Spills of items 
D) All of the above

Question 20

Shrinkage refers to the loss of inventory due to theft,damage or other similar occurrences.

Accepted Answer

A) True 
 B)False

Liberty,Inc.has the following list of inventory: Under specific-identification,what is Liberty's ending inventory if ICF and CRD are not sold during the current period?

The LEAST widely used of the four inventory valuation methods is:

Lionworks Enterprises had the following inventory data: Assuming LIFO,what is the cost of goods sold for the July 14 sale?

Which is NOT an assurance of footnote disclosures?

Lionworks Enterprises had the following inventory data: Assuming LIFO,what is the cost of goods sold for the July 7 sale?

The inventory turnover ratio is normally computed for:

________ helps investors compare a company's financial statements from one period to the next.

If a company experiences a loss of inventory for fire,there is no way to estimate the inventory.

Goods available for sale are $25,000;beginning inventory is $8,000;ending inventory is $12,000;and cost of goods sold is $10,000.The days-sales-in-inventory is closest to:

Inventory turnover measures the amount of times a company turns over its beginning inventory during a period.

Lionworks Enterprises had the following inventory data: Assuming average cost,what is the cost of goods sold for the July 7 sale?

Goods available for sale are $118,000;beginning inventory is $37,000;ending inventory is $42,000;and cost of goods sold is $77,000.The days-sales-in-inventory is closest to:

If the ending inventory in Period 1 is understated,gross profit for Year 1 is:

Given the following inventory activity,what is ending inventory using the perpetual LIFO costing method?

Inventory is the most important asset in a service business.

Lionworks Enterprises had the following inventory data: Assuming LIFO,what is the ending inventory after the July 14 sale?

A company has $8,200 in net sales,$1,100 in gross profit,$2,500 in ending inventory and $2,000 in beginning inventory.The company's cost of goods sold is:

Which of the following would NOT cause an error in the physical inventory count on December 31?

Which of the following would cause inventory shrinkage?

Shrinkage refers to the loss of inventory due to theft,damage or other similar occurrences.

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Accounting for a Merchandising Business

The Challenges of Accounting: Standards, internal Control, audits, fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

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Exam 5: Inventory

Liberty,Inc.has the following list of inventory: Under specific-identification,what is Liberty's ending inventory if ICF and CRD are not sold during the current period?

The LEAST widely used of the four inventory valuation methods is:

Lionworks Enterprises had the following inventory data: Assuming LIFO,what is the cost of goods sold for the July 14 sale?

Which is NOT an assurance of footnote disclosures?

Lionworks Enterprises had the following inventory data: Assuming LIFO,what is the cost of goods sold for the July 7 sale?

The inventory turnover ratio is normally computed for:

________ helps investors compare a company's financial statements from one period to the next.

If a company experiences a loss of inventory for fire,there is no way to estimate the inventory.

Goods available for sale are $25,000;beginning inventory is $8,000;ending inventory is $12,000;and cost of goods sold is $10,000.The days-sales-in-inventory is closest to:

Inventory turnover measures the amount of times a company turns over its beginning inventory during a period.

Lionworks Enterprises had the following inventory data: Assuming average cost,what is the cost of goods sold for the July 7 sale?

Goods available for sale are $118,000;beginning inventory is $37,000;ending inventory is $42,000;and cost of goods sold is $77,000.The days-sales-in-inventory is closest to:

If the ending inventory in Period 1 is understated,gross profit for Year 1 is:

Given the following inventory activity,what is ending inventory using the perpetual LIFO costing method?

Inventory is the most important asset in a service business.

Lionworks Enterprises had the following inventory data: Assuming LIFO,what is the ending inventory after the July 14 sale?

A company has $8,200 in net sales,$1,100 in gross profit,$2,500 in ending inventory and $2,000 in beginning inventory.The company's cost of goods sold is:

Which of the following would NOT cause an error in the physical inventory count on December 31?

Which of the following would cause inventory shrinkage?

Shrinkage refers to the loss of inventory due to theft,damage or other similar occurrences.

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Accounting for a Merchandising Business

The Challenges of Accounting: Standards, internal Control, audits, fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

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