Question 1

Which one of the following types of inventory accounts would be used by a wholesaler or retailer?

Accepted Answer

A) Raw materials inventory 
B) Work in process inventory 
C) Finished goods inventory 
D) Merchandise inventory 
A) Raw materials inventory 
B) Work in process inventory 
C) Finished goods inventory 
D) Merchandise inventory

Question 2

Learning Tree,Inc.
The following data is available for one of the products sold by Learning Tree,Inc. ,which uses the perpetual inventory system:
   Refer to the data for Learning Tree,Inc.
Explain why the amounts are different for LIFO under periodic and perpetual inventory systems.

Accepted Answer

The amounts for ending inventory and cos

Question 3

Learning Tree,Inc.
The following data is available for one of the products sold by Learning Tree,Inc. ,which uses the perpetual inventory system:
   Refer to the data for Learning Tree,Inc.
If the LIFO method is used,what is the amount assigned to cost of goods sold for the 2,500 units sold on May 10?

Accepted Answer

$6,500
(2,

Question 4

Accountants define the market value of inventory as its ______________________________.

Accepted Answer

The answer of Accountants define the market value of inventory...

Question 5

Specific identification relies on matching unit costs with the actual units sold.

Accepted Answer

A) True 
 B)False

Question 6

Which method might allow a company to make significant inventory purchases at year end for the purpose of manipulating income?

Accepted Answer

A) FIFO 
B) LIFO 
C) Specific Identification 
D) Weighted Average Cost 
A) FIFO 
B) LIFO 
C) Specific Identification 
D) Weighted Average Cost

Question 7

If a company overstates its ending inventory balance for 2012 by $10,000,and overstates its ending inventory balance for 2011 by $5,000 what are the effects on its net income for 2012 and 2011? Effect on 2012 Net Income Effect on 2011 Net Income

Accepted Answer

A) Overstated by $15,000 Overstated by $10,000 
B) Understated by $5,000 Overstated by $10,000 
C) Overstated by $5,000 Overstated by $5,000 
D) Overstated by $10,000 Overstated by $5,000 
A) Overstated by $15,000 Overstated by $10,000 
B) Understated by $5,000 Overstated by $10,000 
C) Overstated by $5,000 Overstated by $5,000 
D) Overstated by $10,000 Overstated by $5,000

Question 8

Like sales revenue,cost of goods sold represents an inflow of assets.

Accepted Answer

A) True 
 B)False

Question 9

Several transactions of sales and purchase activities for Genoa Department Store are described below.
   REQUIRED: For each transaction described above,describe the economic effects of the transaction on the company under a periodic inventory system.

Accepted Answer

The answer of Several transactions of sales and purchase activities...

Question 10

Digital Marvels
Selected data from the financial statements for Digital Marvels is presented below.
   Refer to the financial statement information for Digital Marvels.
What portion of every dollar is available to cover operating costs and to contribute to profits for 2014?

Accepted Answer

($200,000 - $136,000

Question 11

Cost of goods sold is equal to beginning inventory plus the net cost of purchases minus _________________________.

Accepted Answer

The answer of Cost of goods sold is equal to...

Question 12

During a period of increasing cost prices,which inventory costing method will yield the lowest cost of goods sold?

Accepted Answer

A) Any method in which the company uses a periodic inventory system 
B) FIFO 
C) LIFO 
D) Weighted Average Cost 
A) Any method in which the company uses a periodic inventory system 
B) FIFO 
C) LIFO 
D) Weighted Average Cost

Question 13

Givens Corp. Givens Corp.is a merchandising company that uses the periodic inventory system.Selected account balances are listed below:
  Refer to the information for Givens Corp.
Calculate the gross profit.

Accepted Answer

A) $241,000 
B) $275,000 
C) $289,000 
D) $425,000 
A) $241,000 
B) $275,000 
C) $289,000 
D) $425,000

Question 14

At the year end inventory count,if goods in transit are shipped FOB shipping point,they should be included in the inventory count of

Accepted Answer

A) The seller 
B) The buyer 
C) Both the seller and the buyer 
D) Neither the seller no the buyer 
A) The seller 
B) The buyer 
C) Both the seller and the buyer 
D) Neither the seller no the buyer

Question 15

Chen's Department Store Chen's Department Store is a merchandising company that uses the periodic inventory system.Selected account balances are listed below:
  Refer to the account information for Chen's Department Store
Calculate Chen's cost of goods purchased

Accepted Answer

A) $ 84,000 
B) $ 90,000 
C) $ 103,000 
D) $ 117,000 
A) $ 84,000 
B) $ 90,000 
C) $ 103,000 
D) $ 117,000

Question 16

A LIFO reserve represents the amount by which cost of goods sold on a FIFO basis exceeds the cost of goods sold on a LIFO basis for the current year.

Accepted Answer

A) True 
 B)False

Question 17

Net purchases equals purchases less purchase returns,allowances,and discounts plus transportation-in.

Accepted Answer

A) True 
 B)False

Question 18

Explain the relationship between the valuation of inventory and income measurement as it relates to the balance sheet and the income statement.

Accepted Answer

Cost or other values must be assigned to

Question 19

Presented below is a partially completed income statement of Deep Sea,Inc.for 2014.
   Using the partially completed income statement for Deep Sea,Inc. ,determine each of the following for 2014.
A)Net Sales
B)Beginning Inventory
C)Ending Inventory
D)Selling,General and Administrative Expenses

Accepted Answer

A)$209,203 ($136,225 + $72,978

Question 20

Readers.com uses a perpetual inventory system.   If Readers.com uses the moving average method,how much is ending inventory on February 28?

Accepted Answer

A) $300 
B) $306 
C) $312 
D) $318 
A) $300 
B) $306 
C) $312 
D) $318

Which one of the following types of inventory accounts would be used by a wholesaler or retailer?

Learning Tree,Inc. The following data is available for one of the products sold by Learning Tree,Inc. ,which uses the perpetual inventory system: Refer to the data for Learning Tree,Inc. Explain why the amounts are different for LIFO under periodic and perpetual inventory systems.

Learning Tree,Inc. The following data is available for one of the products sold by Learning Tree,Inc. ,which uses the perpetual inventory system: Refer to the data for Learning Tree,Inc. If the LIFO method is used,what is the amount assigned to cost of goods sold for the 2,500 units sold on May 10?

Accountants define the market value of inventory as its ______________________________.

Specific identification relies on matching unit costs with the actual units sold.

Which method might allow a company to make significant inventory purchases at year end for the purpose of manipulating income?

If a company overstates its ending inventory balance for 2012 by $10,000,and overstates its ending inventory balance for 2011 by $5,000 what are the effects on its net income for 2012 and 2011? Effect on 2012 Net Income Effect on 2011 Net Income

Like sales revenue,cost of goods sold represents an inflow of assets.

Several transactions of sales and purchase activities for Genoa Department Store are described below. REQUIRED: For each transaction described above,describe the economic effects of the transaction on the company under a periodic inventory system.

Digital Marvels Selected data from the financial statements for Digital Marvels is presented below. Refer to the financial statement information for Digital Marvels. What portion of every dollar is available to cover operating costs and to contribute to profits for 2014?

Cost of goods sold is equal to beginning inventory plus the net cost of purchases minus _________________________.

During a period of increasing cost prices,which inventory costing method will yield the lowest cost of goods sold?

Givens Corp. Givens Corp.is a merchandising company that uses the periodic inventory system.Selected account balances are listed below: Refer to the information for Givens Corp. Calculate the gross profit.

At the year end inventory count,if goods in transit are shipped FOB shipping point,they should be included in the inventory count of

Chen's Department Store Chen's Department Store is a merchandising company that uses the periodic inventory system.Selected account balances are listed below: Refer to the account information for Chen's Department Store Calculate Chen's cost of goods purchased

A LIFO reserve represents the amount by which cost of goods sold on a FIFO basis exceeds the cost of goods sold on a LIFO basis for the current year.

Net purchases equals purchases less purchase returns,allowances,and discounts plus transportation-in.

Explain the relationship between the valuation of inventory and income measurement as it relates to the balance sheet and the income statement.

Presented below is a partially completed income statement of Deep Sea,Inc.for 2014. Using the partially completed income statement for Deep Sea,Inc. ,determine each of the following for 2014. A)Net Sales B)Beginning Inventory C)Ending Inventory D)Selling,General and Administrative Expenses

Readers.com uses a perpetual inventory system. If Readers.com uses the moving average method,how much is ending inventory on February 28?

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, plant, and Equipment, and Intangibles

Current Liabilities, contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

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Exam 5: Inventories and Cost of Goods Sold

Which one of the following types of inventory accounts would be used by a wholesaler or retailer?

Learning Tree,Inc. The following data is available for one of the products sold by Learning Tree,Inc. ,which uses the perpetual inventory system: Refer to the data for Learning Tree,Inc. Explain why the amounts are different for LIFO under periodic and perpetual inventory systems.

Learning Tree,Inc. The following data is available for one of the products sold by Learning Tree,Inc. ,which uses the perpetual inventory system: Refer to the data for Learning Tree,Inc. If the LIFO method is used,what is the amount assigned to cost of goods sold for the 2,500 units sold on May 10?

Accountants define the market value of inventory as its ______________________________.

Specific identification relies on matching unit costs with the actual units sold.

Which method might allow a company to make significant inventory purchases at year end for the purpose of manipulating income?

If a company overstates its ending inventory balance for 2012 by $10,000,and overstates its ending inventory balance for 2011 by $5,000 what are the effects on its net income for 2012 and 2011? Effect on 2012 Net Income Effect on 2011 Net Income

Like sales revenue,cost of goods sold represents an inflow of assets.

Several transactions of sales and purchase activities for Genoa Department Store are described below. REQUIRED: For each transaction described above,describe the economic effects of the transaction on the company under a periodic inventory system.

Digital Marvels Selected data from the financial statements for Digital Marvels is presented below. Refer to the financial statement information for Digital Marvels. What portion of every dollar is available to cover operating costs and to contribute to profits for 2014?

Cost of goods sold is equal to beginning inventory plus the net cost of purchases minus _________________________.

During a period of increasing cost prices,which inventory costing method will yield the lowest cost of goods sold?

Givens Corp. Givens Corp.is a merchandising company that uses the periodic inventory system.Selected account balances are listed below: Refer to the information for Givens Corp. Calculate the gross profit.

At the year end inventory count,if goods in transit are shipped FOB shipping point,they should be included in the inventory count of

Chen's Department Store Chen's Department Store is a merchandising company that uses the periodic inventory system.Selected account balances are listed below: Refer to the account information for Chen's Department Store Calculate Chen's cost of goods purchased

A LIFO reserve represents the amount by which cost of goods sold on a FIFO basis exceeds the cost of goods sold on a LIFO basis for the current year.

Net purchases equals purchases less purchase returns,allowances,and discounts plus transportation-in.

Explain the relationship between the valuation of inventory and income measurement as it relates to the balance sheet and the income statement.

Presented below is a partially completed income statement of Deep Sea,Inc.for 2014. Using the partially completed income statement for Deep Sea,Inc. ,determine each of the following for 2014. A)Net Sales B)Beginning Inventory C)Ending Inventory D)Selling,General and Administrative Expenses

Readers.com uses a perpetual inventory system. If Readers.com uses the moving average method,how much is ending inventory on February 28?

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, plant, and Equipment, and Intangibles

Current Liabilities, contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

Filters