Question 1

Listed below are 5 terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the number for the correct term.

Accepted Answer

The answer of Listed below are 5 terms followed by...

Question 2

Alison's dress shop buys dresses from McGuire Manufacturing.Alison purchased dresses from McGuire on July 17 and received an invoice with a list price amount of $6,000 and payment terms of 2/10,n/30.Alison uses the net method to record purchases.Alison should record the purchase at:

Accepted Answer

A) $5,940. 
B) $5,880. 
C) $6,000. 
D) $6,120. 
A) $5,940. 
B) $5,880. 
C) $6,000. 
D) $6,120.

Question 3

The ending inventory under a periodic inventory system assuming average cost (rounding unit cost to three decimal places)is:

Accepted Answer

A) $5,087. 
B) $5,107. 
C) $5,077. 
D) $5,005. 
A) $5,087. 
B) $5,107. 
C) $5,077. 
D) $5,005.

Question 4

Under the net method,purchase discounts lost are:

Accepted Answer

A) Included in purchases. 
B) Added to accounts payable. 
C) Included in interest expense. 
D) Deducted from discount income. 
A) Included in purchases. 
B) Added to accounts payable. 
C) Included in interest expense. 
D) Deducted from discount income.

Question 5

The largest expense on a retailer's income statement is typically:

Accepted Answer

A) Salaries and wages. 
B) Cost of goods sold. 
C) Income tax expense. 
D) Depreciation expense. 
A) Salaries and wages. 
B) Cost of goods sold. 
C) Income tax expense. 
D) Depreciation expense.

Question 6

Listed below are 5 terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the number for the correct term.

Accepted Answer

The answer of Listed below are 5 terms followed by...

Question 7

In a perpetual inventory system,the cost of inventory sold is:

Accepted Answer

A) Debited to accounts receivable. 
B) Credited to cost of goods sold. 
C) Debited to cost of goods sold. 
D) Not recorded at the time goods are sold. 
A) Debited to accounts receivable. 
B) Credited to cost of goods sold. 
C) Debited to cost of goods sold. 
D) Not recorded at the time goods are sold.

Question 8

Ending inventory using the FIFO method is:

Accepted Answer

A) $ 650. 
B) $1,000. 
C) $ 707. 
D) $ 600. 
A) $ 650. 
B) $1,000. 
C) $ 707. 
D) $ 600.

Question 9

Physical counts of inventory are never made with perpetual inventory systems.

Accepted Answer

A) True 
 B)False

Question 10

Thompson's 2016 gross profit ratio is:

Accepted Answer

A) 25%. 
B) 19%. 
C) 20%. 
D) None of the above is correct. 
A) 25%. 
B) 19%. 
C) 20%. 
D) None of the above is correct.

Question 11

LIFO usually provides a better match of revenue and expense than does FIFO.

Accepted Answer

A) True 
 B)False

Question 12

The gross profit ratio is calculated by dividing gross profit by average inventory.

Accepted Answer

A) True 
 B)False

Question 13

The LIFO Conformity Rule states that if LIFO is used for:

Accepted Answer

A) One class of inventory,it must be used for all classes of inventory. 
B) Tax purposes,it must be used for financial reporting. 
C) One company in an affiliated group,it must be used by all companies in an affiliated group. 
D) Domestic companies,it must be used by foreign partners. 
A) One class of inventory,it must be used for all classes of inventory. 
B) Tax purposes,it must be used for financial reporting. 
C) One company in an affiliated group,it must be used by all companies in an affiliated group. 
D) Domestic companies,it must be used by foreign partners.

Question 14

HH Company uses LIFO.HH disclosed that if FIFO had been used,inventory at the end of 2016 would have been $20 million lower than the difference between LIFO and FIFO at the end of 2015.Assuming HH has a 30% income tax rate:

Accepted Answer

A) Its reported cost of goods for 2016 would have been $14 million less if it had used FIFO rather than LIFO for its financial statements. 
B) Its reported cost of goods for 2016 would have been $20 million less if it had used FIFO rather than LIFO for its financial statements. 
C) Its reported cost of goods sold for 2016 would have been $14 million higher if it had used FIFO rather than LIFO for its financial statements. 
D) Its reported cost of goods sold for 2016 would have been $20 million higher if it had used FIFO rather than LIFO for its financial statements. 
A) Its reported cost of goods for 2016 would have been $14 million less if it had used FIFO rather than LIFO for its financial statements. 
B) Its reported cost of goods for 2016 would have been $20 million less if it had used FIFO rather than LIFO for its financial statements. 
C) Its reported cost of goods sold for 2016 would have been $14 million higher if it had used FIFO rather than LIFO for its financial statements. 
D) Its reported cost of goods sold for 2016 would have been $20 million higher if it had used FIFO rather than LIFO for its financial statements.

Question 15

The following information is taken from the accounting records of Rapid Runner Inc. for the year 2016.  Missing information has been left blank.
-Required:  Compute the missing amounts.

Accepted Answer

The answer of The following information is taken from the...

Question 16

In a period when costs are falling and inventory quantities are stable,the lowest taxable income would be reported by using the inventory method of:

Accepted Answer

A) Weighted average. 
B) LIFO. 
C) Moving average. 
D) FIFO. 
A) Weighted average. 
B) LIFO. 
C) Moving average. 
D) FIFO.

Question 17

What is Nu's gross profit ratio if it elects LIFO?

Accepted Answer

A) 80%. 
B) 49%. 
C) 40%. 
D) 5%. 
A) 80%. 
B) 49%. 
C) 40%. 
D) 5%.

Question 18

The following information is taken from the accounting records of Rapid Runner Inc. for the year 2016.  Missing information has been left blank.
-Required:  Compute the missing amounts.

Accepted Answer

The answer of The following information is taken from the...

Question 19

What is Nueva's net income if it elects LIFO?

Accepted Answer

A) $440. 
B) $264. 
C) $620. 
D) $372. 
A) $440. 
B) $264. 
C) $620. 
D) $372.

Question 20

Required: Compute the January 31 ending inventory and cost of goods sold for January,assuming Denver uses average cost and a perpetual inventory system.

Accepted Answer

Perpetual

Exam 8: Inventories: Measurement

Listed below are 5 terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the number for the correct term.

Alison's dress shop buys dresses from McGuire Manufacturing.Alison purchased dresses from McGuire on July 17 and received an invoice with a list price amount of $6,000 and payment terms of 2/10,n/30.Alison uses the net method to record purchases.Alison should record the purchase at:

The ending inventory under a periodic inventory system assuming average cost (rounding unit cost to three decimal places)is:

Under the net method,purchase discounts lost are:

The largest expense on a retailer's income statement is typically:

Listed below are 5 terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the number for the correct term.

In a perpetual inventory system,the cost of inventory sold is:

Ending inventory using the FIFO method is:

Physical counts of inventory are never made with perpetual inventory systems.

Thompson's 2016 gross profit ratio is:

LIFO usually provides a better match of revenue and expense than does FIFO.

The gross profit ratio is calculated by dividing gross profit by average inventory.

The LIFO Conformity Rule states that if LIFO is used for:

HH Company uses LIFO.HH disclosed that if FIFO had been used,inventory at the end of 2016 would have been $20 million lower than the difference between LIFO and FIFO at the end of 2015.Assuming HH has a 30% income tax rate:

The following information is taken from the accounting records of Rapid Runner Inc. for the year 2016. Missing information has been left blank. -Required: Compute the missing amounts.

In a period when costs are falling and inventory quantities are stable,the lowest taxable income would be reported by using the inventory method of:

What is Nu's gross profit ratio if it elects LIFO?

The following information is taken from the accounting records of Rapid Runner Inc. for the year 2016. Missing information has been left blank. -Required: Compute the missing amounts.

What is Nueva's net income if it elects LIFO?

Required: Compute the January 31 ending inventory and cost of goods sold for January,assuming Denver uses average cost and a perpetual inventory system.

Environment and Theoretical Structure of Financial Accounting

Review of the Accounting Process

The Balance Sheet and Financial Disclosures

The Income Statement, comprehensive Income, and the Statement of Cash Flows

Income Measurement

Time Value of Money Concepts

Cash and Receivables

Inventories: Additional Issues

Property, plant, and Equipment and Intangible Assets: Acquisition and Disposition

Property, plant, and Equipment and Intangible Assets: Utilization and Impairment

Investments

Current Liabilities and Contingencies

Bonds and Long-Term Notes

Leases

Accounting for Income Taxes

Pensions and Other Postretirement Benefits

Shareholders Equity

Share-Based Compensation and Earnings Per Share

Accounting Changes

The Statement of Cash Flows

Filters