Question 1

A note receivable due in 90 days is listed on the balance sheet under

Accepted Answer

A) long-term liabilities. 
B) fixed assets. 
C) current liabilities. 
D) current assets. 
A) long-term liabilities. 
B) fixed assets. 
C) current liabilities. 
D) current assets.

Question 2

Cost is a method of inventory valuation.

Accepted Answer

A) True 
 B)False

Question 3

If the cost of an item of inventory is $70,the current replacement cost is $65,and the sales price is $85,the amount included in inventory according to the lower of cost or market is

Accepted Answer

A) $65. 
B) $70. 
C) $85. 
D) $160. 
A) $65. 
B) $70. 
C) $85. 
D) $160.

Question 4

Under which method of inventory cost flows 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) Last-in,last-out 
A) Average cost 
B) Last-in,first-out 
C) First-in,first-out 
D) Last-in,last-out

Question 5

Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases:

Accepted Answer

The answer of Determine the amount to be added to...

Question 6

Use the following data to calculate cost of merchandise sold under FIFO method.

Accepted Answer

A) $825 
B) $750 
C) $675 
D) $600 
A) $825 
B) $750 
C) $675 
D) $600

Question 7

The FIFO method of costing inventory is based on the assumption that costs should be charged against revenues in the reverse order in which they were incurred.

Accepted Answer

A) True 
 B)False

Question 8

Receivables not expected to be collected within one year are reported in the fixed assets section of the balance sheet.

Accepted Answer

A) True 
 B)False

Question 9

Use the following data to calculate the cost of ending inventory under the FIFO method.

Accepted Answer

A) $825 
B) $750 
C) $675 
D) $840 
A) $825 
B) $750 
C) $675 
D) $840

Question 10

The inventory method that considers the inventory to be composed of the units of merchandise acquired earliest is called

Accepted Answer

A) first-in,first-out. 
B) retail method. 
C) average cost. 
D) last-in,first-out. 
A) first-in,first-out. 
B) retail method. 
C) average cost. 
D) last-in,first-out.

Question 11

Use the following data to calculate the cost of ending inventory using the LIFO method.

Accepted Answer

A) $825 
B) $750 
C) $675 
D) $600 
A) $825 
B) $750 
C) $675 
D) $600

Question 12

The presentation of net accounts receivable on the balance sheet will be most accurate
Under the

Accepted Answer

A) direct write-off method. 
B) estimate based on the percentage of sales method. 
C) estimate based on analysis of receivables. 
D) none of these. 
A) direct write-off method. 
B) estimate based on the percentage of sales method. 
C) estimate based on analysis of receivables. 
D) none of these.

Question 13

All receivables that are expected to be realized in cash within a year are presented in the current assets section of the balance sheet.

Accepted Answer

A) True 
 B)False

Question 14

When an account is written off under the allowance method,

Accepted Answer

A) the write-off is taken against the allowance account. 
B) bad debt expense is increased. 
C) accounts receivable remains unchanged. 
D) accounts receivable increases. 
A) the write-off is taken against the allowance account. 
B) bad debt expense is increased. 
C) accounts receivable remains unchanged. 
D) accounts receivable increases.

Question 15

Using the lower of cost or market,what should the total inventory value be for the following items:

Accepted Answer

The answer of Using the lower of cost or market,what...

Question 16

The due date of a 90-day note dated July 5 is

Accepted Answer

A) September 30. 
B) October 2. 
C) October 3. 
D) October 1. 
A) September 30. 
B) October 2. 
C) October 3. 
D) October 1.

Question 17

The amount of the promissory note plus the interest earned on the due date is called the

Accepted Answer

A) realizable value. 
B) maturity value. 
C) face value. 
D) net realizable value. 
A) realizable value. 
B) maturity value. 
C) face value. 
D) net realizable value.

Question 18

The lower of cost or market is a method of inventory valuation.

Accepted Answer

A) True 
 B)False

Question 19

During inflationary periods,the use of the FIFO method of costing inventory will result in a greater amount of net income than would result from the use of the LIFO cost method.

Accepted Answer

A) True 
 B)False

Question 20

The direct write-off method records uncollectible accounts expense in the year the specific account receivable is determined to be uncollectible.

Accepted Answer

A) True 
 B)False

A note receivable due in 90 days is listed on the balance sheet under

Cost is a method of inventory valuation.

If the cost of an item of inventory is $70,the current replacement cost is $65,and the sales price is $85,the amount included in inventory according to the lower of cost or market is

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

Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases:

Use the following data to calculate cost of merchandise sold under FIFO method.

The FIFO method of costing inventory is based on the assumption that costs should be charged against revenues in the reverse order in which they were incurred.

Receivables not expected to be collected within one year are reported in the fixed assets section of the balance sheet.

Use the following data to calculate the cost of ending inventory under the FIFO method.

The inventory method that considers the inventory to be composed of the units of merchandise acquired earliest is called

Use the following data to calculate the cost of ending inventory using the LIFO method.

The presentation of net accounts receivable on the balance sheet will be most accurate Under the

All receivables that are expected to be realized in cash within a year are presented in the current assets section of the balance sheet.

When an account is written off under the allowance method,

Using the lower of cost or market,what should the total inventory value be for the following items:

The due date of a 90-day note dated July 5 is

The amount of the promissory note plus the interest earned on the due date is called the

The lower of cost or market is a method of inventory valuation.

During inflationary periods,the use of the FIFO method of costing inventory will result in a greater amount of net income than would result from the use of the LIFO cost method.

The direct write-off method records uncollectible accounts expense in the year the specific account receivable is determined to be uncollectible.

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley,internal Control,and Cash

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

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Exam 6: Receivables and Inventories

A note receivable due in 90 days is listed on the balance sheet under

Cost is a method of inventory valuation.

If the cost of an item of inventory is $70,the current replacement cost is $65,and the sales price is $85,the amount included in inventory according to the lower of cost or market is

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

Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases:

Use the following data to calculate cost of merchandise sold under FIFO method.

The FIFO method of costing inventory is based on the assumption that costs should be charged against revenues in the reverse order in which they were incurred.

Receivables not expected to be collected within one year are reported in the fixed assets section of the balance sheet.

Use the following data to calculate the cost of ending inventory under the FIFO method.

The inventory method that considers the inventory to be composed of the units of merchandise acquired earliest is called

Use the following data to calculate the cost of ending inventory using the LIFO method.

The presentation of net accounts receivable on the balance sheet will be most accurate Under the

All receivables that are expected to be realized in cash within a year are presented in the current assets section of the balance sheet.

When an account is written off under the allowance method,

Using the lower of cost or market,what should the total inventory value be for the following items:

The due date of a 90-day note dated July 5 is

The amount of the promissory note plus the interest earned on the due date is called the

The lower of cost or market is a method of inventory valuation.

During inflationary periods,the use of the FIFO method of costing inventory will result in a greater amount of net income than would result from the use of the LIFO cost method.

The direct write-off method records uncollectible accounts expense in the year the specific account receivable is determined to be uncollectible.

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley,internal Control,and Cash

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters