Question 1

During periods of decreasing costs,the use of the LIFO method of costing inventory will result in a lower amount of net income than would result from the use of the FIFO method.

Accepted Answer

A) True 
 B)False

Question 2

Describe three inventory cost flow assumptions and how they impact the financial statements.

Accepted Answer

1.Cost flow is in the order in which cos

Question 3

Matching
Match each description to the appropriate document used for inventory control (a-c).
-Authorizes the purchase of inventory from an approved vendor

Accepted Answer

A) Receiving report 
B) Vendor's invoice 
C) Purchase order 
A) Receiving report 
B) Vendor's invoice 
C) Purchase order

Question 4

Addison, Inc. uses a perpetual inventory system. The following is information about one inventory item for the month of September:
​
  
-If Addison uses FIFO,the cost of the ending merchandise inventory on September 30 is

Accepted Answer

A) $800 
B) $650 
C) $750 
D) $700 
A) $800 
B) $650 
C) $750 
D) $700

Question 5

The inventory costing method that reports the earliest costs in ending inventory is

Accepted Answer

A) FIFO 
B) LIFO 
C) weighted average 
D) specific identification 
A) FIFO 
B) LIFO 
C) weighted average 
D) specific identification

Question 6

A consignor who has goods out on consignment with an agent should include the goods in ending inventory even though they are not in the possession of the consignor.

Accepted Answer

A) True 
 B)False

Question 7

The units of Product Green-2 available for sale during the year were as follows:​   There are 17 units of the product in the physical inventory at September 30.The periodic inventory system is used.Determine the cost of merchandise sold by the 
(a)FIFO,
(b)LIFO,and 
(c)average cost methods.

Accepted Answer

The answer of The units of Product Green-2 available for...

Question 8

Cost flow is in the reverse order in which costs were incurred when using

Accepted Answer

A) weighted average 
B) last-in, first-out 
C) first-in, first-out 
D) average cost 
A) weighted average 
B) last-in, first-out 
C) first-in, first-out 
D) average cost

Question 9

Control of inventory should begin as soon as the inventory is ordered.Which of the following internal control steps is not done to meet this goal?

Accepted Answer

A) check the invoice to the receiving report 
B) check the invoice to the purchase order 
C) check the invoice with the person who specifically purchased the item 
D) check the invoice for mathematical accuracy 
A) check the invoice to the receiving report 
B) check the invoice to the purchase order 
C) check the invoice with the person who specifically purchased the item 
D) check the invoice for mathematical accuracy

Question 10

If ending inventory for the year is understated,net income for the year is overstated.

Accepted Answer

A) True 
 B)False

Question 11

Merchandise inventory at the end of the year was understated.Which of the following statements correctly states the effect of the error?

Accepted Answer

A) Net income is understated. 
B) Net income is overstated. 
C) Cost of merchandise sold is understated. 
D) Merchandise inventory reported on the balance sheet is overstated. 
A) Net income is understated. 
B) Net income is overstated. 
C) Cost of merchandise sold is understated. 
D) Merchandise inventory reported on the balance sheet is overstated.

Question 12

Match each situation to its impact (a-c) on the current year's net income.
-Beginning inventory was understated.

Accepted Answer

A) Net income for the current year will be overstated. 
B) Net income for the current year will be understated. 
C) There will be no error effect on net income. 
A) Net income for the current year will be overstated. 
B) Net income for the current year will be understated. 
C) There will be no error effect on net income.

Question 13

Under the periodic inventory system,a physical inventory is taken to determine the cost of the inventory on hand and the cost of the merchandise sold.

Accepted Answer

A) True 
 B)False

Question 14

On the basis of the following data,determine the value of the inventory at the lower of cost or market.Apply lower of cost or market to each inventory item.Show your work.

Accepted Answer

The answer of On the basis of the following data,determine...

Question 15

Match each description to the appropriate cost flow assumption (a-d).
-Cost flow is assumed to be in the reverse order of costs incurred.

Accepted Answer

A) Weighted average 
B) First-in, first-out (FIFO) 
C) Last-in, first-out (LIFO) 
D) Specific identification 
A) Weighted average 
B) First-in, first-out (FIFO) 
C) Last-in, first-out (LIFO) 
D) Specific identification

Question 16

Use the information below to answer the following questions.
​
The following lots of a particular commodity were available for sale during the year:
​
   The firm uses the periodic system, and there are 20 units of the commodity on hand at the end of the year.
​​
-What is the amount of cost of merchandise sold for the year according to the FIFO method?

Accepted Answer

A) $1,380 
B) $1,375 
C) $1,510 
D) $1,250 
A) $1,380 
B) $1,375 
C) $1,510 
D) $1,250

Question 17

Fill in the missing amounts from the chart below regarding the calculation of Bean Corporation's estimated inventory using the retail method of estimation.

Accepted Answer

The answer of Fill in the missing amounts from the...

Question 18

Use the information below to answer the following questions.
​
The following lots of a particular commodity were available for sale during the year:
​
   ​
-The firm uses the periodic system,and there are 20 units of the commodity on hand at the end of the year.What is the amount of inventory at the end of the year according to the LIFO method?

Accepted Answer

A) $655 
B) $620 
C) $690 
D) $659 
A) $655 
B) $620 
C) $690 
D) $659

Question 19

Ending inventory is made up of the oldest purchases when a company uses

Accepted Answer

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

Question 20

The choice of an inventory costing method has no significant impact on the financial statements.

Accepted Answer

A) True 
 B)False

During periods of decreasing costs,the use of the LIFO method of costing inventory will result in a lower amount of net income than would result from the use of the FIFO method.

Describe three inventory cost flow assumptions and how they impact the financial statements.

Matching Match each description to the appropriate document used for inventory control (a-c). -Authorizes the purchase of inventory from an approved vendor

Addison, Inc. uses a perpetual inventory system. The following is information about one inventory item for the month of September: -If Addison uses FIFO,the cost of the ending merchandise inventory on September 30 is

The inventory costing method that reports the earliest costs in ending inventory is

A consignor who has goods out on consignment with an agent should include the goods in ending inventory even though they are not in the possession of the consignor.

The units of Product Green-2 available for sale during the year were as follows: There are 17 units of the product in the physical inventory at September 30.The periodic inventory system is used.Determine the cost of merchandise sold by the (a)FIFO, (b)LIFO,and (c)average cost methods.

Cost flow is in the reverse order in which costs were incurred when using

Control of inventory should begin as soon as the inventory is ordered.Which of the following internal control steps is not done to meet this goal?

If ending inventory for the year is understated,net income for the year is overstated.

Merchandise inventory at the end of the year was understated.Which of the following statements correctly states the effect of the error?

Match each situation to its impact (a-c) on the current year's net income. -Beginning inventory was understated.

Under the periodic inventory system,a physical inventory is taken to determine the cost of the inventory on hand and the cost of the merchandise sold.

On the basis of the following data,determine the value of the inventory at the lower of cost or market.Apply lower of cost or market to each inventory item.Show your work.

Match each description to the appropriate cost flow assumption (a-d). -Cost flow is assumed to be in the reverse order of costs incurred.

Fill in the missing amounts from the chart below regarding the calculation of Bean Corporation's estimated inventory using the retail method of estimation.

Ending inventory is made up of the oldest purchases when a company uses

The choice of an inventory costing method has no significant impact on the financial statements.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 7: Inventories

During periods of decreasing costs,the use of the LIFO method of costing inventory will result in a lower amount of net income than would result from the use of the FIFO method.

Describe three inventory cost flow assumptions and how they impact the financial statements.

Matching Match each description to the appropriate document used for inventory control (a-c). -Authorizes the purchase of inventory from an approved vendor

Addison, Inc. uses a perpetual inventory system. The following is information about one inventory item for the month of September: ​ -If Addison uses FIFO,the cost of the ending merchandise inventory on September 30 is

The inventory costing method that reports the earliest costs in ending inventory is

A consignor who has goods out on consignment with an agent should include the goods in ending inventory even though they are not in the possession of the consignor.

The units of Product Green-2 available for sale during the year were as follows:​ There are 17 units of the product in the physical inventory at September 30.The periodic inventory system is used.Determine the cost of merchandise sold by the (a)FIFO, (b)LIFO,and (c)average cost methods.

Cost flow is in the reverse order in which costs were incurred when using

Control of inventory should begin as soon as the inventory is ordered.Which of the following internal control steps is not done to meet this goal?

If ending inventory for the year is understated,net income for the year is overstated.

Merchandise inventory at the end of the year was understated.Which of the following statements correctly states the effect of the error?

Match each situation to its impact (a-c) on the current year's net income. -Beginning inventory was understated.

Under the periodic inventory system,a physical inventory is taken to determine the cost of the inventory on hand and the cost of the merchandise sold.

On the basis of the following data,determine the value of the inventory at the lower of cost or market.Apply lower of cost or market to each inventory item.Show your work.

Match each description to the appropriate cost flow assumption (a-d). -Cost flow is assumed to be in the reverse order of costs incurred.

Fill in the missing amounts from the chart below regarding the calculation of Bean Corporation's estimated inventory using the retail method of estimation.

Ending inventory is made up of the oldest purchases when a company uses

The choice of an inventory costing method has no significant impact on the financial statements.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Addison, Inc. uses a perpetual inventory system. The following is information about one inventory item for the month of September: -If Addison uses FIFO,the cost of the ending merchandise inventory on September 30 is

The units of Product Green-2 available for sale during the year were as follows: There are 17 units of the product in the physical inventory at September 30.The periodic inventory system is used.Determine the cost of merchandise sold by the (a)FIFO, (b)LIFO,and (c)average cost methods.