Question 1

Goods in transit between the buyer and the seller belong to:

Accepted Answer

A) The seller. 
B) The buyer. 
C) The freight company. 
D) The answer depends upon whether the goods were shipped F.O.B.shipping point or F.O.B.destination. 
A) The seller. 
B) The buyer. 
C) The freight company. 
D) The answer depends upon whether the goods were shipped F.O.B.shipping point or F.O.B.destination.

Question 2

Inventory flow assumptions
The perpetual inventory records of Handy Hardware show 150 units of a particular product on hand,acquired at the following dates and costs:   On June 3,Handy sold 120 units of this product.
Instructions: Prepare a journal entry to record the cost of goods sold relating to the sale on June 3,assuming that Handy uses: (Show your computations as per below format. )
(a)A LIFO flow assumption.
(b)A FIFO flow assumption.
(c)The average cost (or moving average)flow assumption.

Accepted Answer

The answer of Inventory flow assumptions
The perpetual inventory records of...

Question 3

From an accounting point of view,one implication of an effective just-in-time inventory system is that:

Accepted Answer

A) Sales transactions must be recorded using on-line point-of-sale terminals. 
B) Inventories are less material in dollar amount and alternative inventory flow assumptions will produce more similar results. 
C) The cost of goods sold is significantly reduced. 
D) Purchases of merchandise are recorded as cash payments are made,and sales transactions are recorded as cash is received. 
A) Sales transactions must be recorded using on-line point-of-sale terminals. 
B) Inventories are less material in dollar amount and alternative inventory flow assumptions will produce more similar results. 
C) The cost of goods sold is significantly reduced. 
D) Purchases of merchandise are recorded as cash payments are made,and sales transactions are recorded as cash is received.

Question 4

When the periodic inventory system is used,determining the cost of the year-end inventory involves two distinct steps: counting the units and pricing the units.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following results in the inventory being stated at the most current acquisition costs?

Accepted Answer

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

Question 6

During periods of inflation,when comparing LIFO with FIFO:

Accepted Answer

A) LIFO inventory and cost of sales would be higher. 
B) LIFO inventory and cost of sales would be lower. 
C) LIFO inventory would be lower and cost of sales would be higher. 
D) LIFO inventory would be higher and cost of sales would be lower. 
A) LIFO inventory and cost of sales would be higher. 
B) LIFO inventory and cost of sales would be lower. 
C) LIFO inventory would be lower and cost of sales would be higher. 
D) LIFO inventory would be higher and cost of sales would be lower.

Question 7

[The following information applies to the questions displayed below.]
200 At the end of last year,Games-2-Use had merchandise costing $140,000 in inventory.During January of the current year,the company purchased merchandise costing $102,000,and sold merchandise that it had purchased at a total cost of $84,000.Games-2-Use uses a perpetual inventory system.
-The total amount debited to the Inventory account during January was:

Accepted Answer

A) $0. 
B) $84,000. 
C) $102,000. 
D) $140,000. 
A) $0. 
B) $84,000. 
C) $102,000. 
D) $140,000.

Goods in transit between the buyer and the seller belong to:

From an accounting point of view,one implication of an effective just-in-time inventory system is that:

When the periodic inventory system is used,determining the cost of the year-end inventory involves two distinct steps: counting the units and pricing the units.

Which of the following results in the inventory being stated at the most current acquisition costs?

During periods of inflation,when comparing LIFO with FIFO:

Accounting: Information for Decision Making

Basic Financial Statements

The Accounting Cycle: Capturing Economic Events

The Accounting Cycle: Accruals and Deferrals

The Accounting Cycle: Reporting Financial Results

Merchandising Activities

Financial Assets

Plant and Intangible Assets

Liabilities

Stockholders Equity: Paid-In Capital

Income and Changes in Retained Earnings

Statement of Cash Flows

Financial Statement Analysis

Global Business and Accounting

Management Accounting

Job Order Cost Systems and Overhead Allocations

Process Costing

Costing and the Value Chain

Cost-Volume-Profit Analysis

Incremental Analysis

Responsibility Accounting and Transfer Pricing

Operational Budgeting

Standard Cost Systems

Rewarding Business Performance

Capital Budgeting

the Time Value of Money: Future Amounts and Present Values

Forms of Business Organization

Filters

Exam 8: Inventories and the Cost of Goods Sold

Goods in transit between the buyer and the seller belong to:

From an accounting point of view,one implication of an effective just-in-time inventory system is that:

When the periodic inventory system is used,determining the cost of the year-end inventory involves two distinct steps: counting the units and pricing the units.

Which of the following results in the inventory being stated at the most current acquisition costs?

During periods of inflation,when comparing LIFO with FIFO:

Accounting: Information for Decision Making

Basic Financial Statements

The Accounting Cycle: Capturing Economic Events

The Accounting Cycle: Accruals and Deferrals

The Accounting Cycle: Reporting Financial Results

Merchandising Activities

Financial Assets

Plant and Intangible Assets

Liabilities

Stockholders Equity: Paid-In Capital

Income and Changes in Retained Earnings

Statement of Cash Flows

Financial Statement Analysis

Global Business and Accounting

Management Accounting

Job Order Cost Systems and Overhead Allocations

Process Costing

Costing and the Value Chain

Cost-Volume-Profit Analysis

Incremental Analysis

Responsibility Accounting and Transfer Pricing

Operational Budgeting

Standard Cost Systems

Rewarding Business Performance

Capital Budgeting

the Time Value of Money: Future Amounts and Present Values

Forms of Business Organization

Filters