1 A physical inventory is used to
a. compare physical inventory to book
inventory.
b. help prevent employee thefts or misuses of inventory.
c.
investigate major errors.
d. all are true.
2 Several controls
are used to safeguard inventory and one of those is to
a. allow all employees
access to the materials warehouse.
b. keep low priced inventory behind lock
and key.
c. hire security guards.
d. install sensors at the cash
registers.
3 The inventory is added to the inventory records
after three documents are reconciled. One of those documents is:
a. sales
receipt.
b. company check.
c. receiving report.
d. sales invoice.
4 Determine the gross profit assuming that only one item was sold
for $14 using the average inventory cost flow method.
See attached
Image:
a. $7
b. $14
c. $6
d. $8
5 Determine the
ending inventory assuming that only one item was sold for $14 using the FIFO
inventory cost flow method.
See attached image
a. $7
b. $15
c. $13
d. $14
6Determine the ending inventory assuming that only
one item was sold for $14 using the LIFO inventory cost flow method.
See
attached Image:
a. $10
b. $14
c. $16
7 Determine the cost
of merchandise sold for the transaction on October 8 using the perpetual
inventory system and the LIFO method.
See attached Image:
a. $210
b. $96
c. $72
d. $62
8 Determine the cost of merchandise sold for the transaction on October 25 using the perpetual inventory system and the FIFO method.
See attached Image:
a. $180
b.
$137
c. $138
d. $105
9 Determine the cost of merchandise sold
for the transaction on October 25 using the perpetual inventory system and the
average cost method.
See attached Image:
a. $144.28
b. $78.72
c. $105.00
d. $65.56
10
Determine the gross profit using the
FIFO inventory method:
See attached Image:
a. $152
b. $104
c.
$252
d. $148
a. compare physical inventory to book
inventory.
b. help prevent employee thefts or misuses of inventory.
c.
investigate major errors.
d. all are true.
2 Several controls
are used to safeguard inventory and one of those is to
a. allow all employees
access to the materials warehouse.
b. keep low priced inventory behind lock
and key.
c. hire security guards.
d. install sensors at the cash
registers.
3 The inventory is added to the inventory records
after three documents are reconciled. One of those documents is:
a. sales
receipt.
b. company check.
c. receiving report.
d. sales invoice.
4 Determine the gross profit assuming that only one item was sold
for $14 using the average inventory cost flow method.
See attached
Image:
a. $7
b. $14
c. $6
d. $8
5 Determine the
ending inventory assuming that only one item was sold for $14 using the FIFO
inventory cost flow method.
See attached image
a. $7
b. $15
c. $13
d. $14
6Determine the ending inventory assuming that only
one item was sold for $14 using the LIFO inventory cost flow method.
See
attached Image:
a. $10
b. $14
c. $16
7 Determine the cost
of merchandise sold for the transaction on October 8 using the perpetual
inventory system and the LIFO method.
See attached Image:
a. $210
b. $96
c. $72
d. $62
8 Determine the cost of merchandise sold for the transaction on October 25 using the perpetual inventory system and the FIFO method.
See attached Image:
a. $180
b.
$137
c. $138
d. $105
9 Determine the cost of merchandise sold
for the transaction on October 25 using the perpetual inventory system and the
average cost method.
See attached Image:
a. $144.28
b. $78.72
c. $105.00
d. $65.56
10
Determine the gross profit using the
FIFO inventory method:
See attached Image:
a. $152
b. $104
c.
$252
d. $148
11 Determine the ending inventory using the periodic inventory system and the
LIFO inventory method:
a. $60
b. $146
c. $30
d. $56
12 Determine the ending inventory using the periodic inventory
system and the average cost method:
a. $36.48
b. $56
c. $30
d.
$104
13 Which of the following inventory methods is not practical
unless each inventory unit can
be separately identified?
a. FIFO
b.
Average
c. Specific
d. LIFO
14 The cost method that will
show the highest taxable income during times of inflation is the
a. FIFO.
b. LIFO.
c. Average.
d. Specific.
15 The cost method
that will yield an inventory that is closer to current prices is:
a. NIFO.
b. FIFO.
c. LIFO.
d. Average.
16 The cash, land,
inventory, and accounts receivable are listed in the balance sheet. Which of the
following is the correct order they should be found on the balance sheet?
a.
Land, inventory, accounts receivable, cash
b. Cash, accounts receivable,
inventory, land
c. Cash, inventory, accounts receivable, land
d.
Inventory, accounts receivable, cash, land
17 During the taking of
the physical inventory, the company inadvertently counted its inventory as
$89,000 instead of the correct amount of $87,000. Indicate the effect of the
misstatement on the balance sheet of the current year.
a. Assets are
understated by $2,000
b. Stockholders' equity is understated by $2,000
c. Liabilities are overstated by $2,000
d. Stockholders' equity is
overstated by $2,000.
18 During the taking of the physical
inventory, the company inadvertently counted its inventory as $34,000 instead of
the correct amount of $43,000. Indicate the effect of the misstatement on the
balance sheet of the current year.
a. Assets are understated by $9,000
b.
Assets are overstated by $9,000
c. Liabilities are overstated by $9,000
d. Stockholders' equity is overstated by $9,000
19 A business
uses the retail method of inventory costing. The retail value of the inventory
is $478,000. If the ratio of cost to retail price is 60%, what is the amount of
inventory to be reported on the financial statements?
a. $286,800
b.
$478,000
c. $192,200
d. cannot be determined.
20 Using the
following cost data, estimate the cost of ending merchandise inventory.
a.
$57,000
b. $125,000
c. $75,000
d. $123,000
21 An
advantage of using the retail method of inventory costing is:
a. provides
inventory figures for preparing monthly and quarterly financial statements when
the periodic system is used.
b. that it may be used as an aid in taking a
physical inventory.
c. that it will help identify inventory shortages
d.
all are true
LIFO inventory method:
a. $60
b. $146
c. $30
d. $56
12 Determine the ending inventory using the periodic inventory
system and the average cost method:
a. $36.48
b. $56
c. $30
d.
$104
13 Which of the following inventory methods is not practical
unless each inventory unit can
be separately identified?
a. FIFO
b.
Average
c. Specific
d. LIFO
14 The cost method that will
show the highest taxable income during times of inflation is the
a. FIFO.
b. LIFO.
c. Average.
d. Specific.
15 The cost method
that will yield an inventory that is closer to current prices is:
a. NIFO.
b. FIFO.
c. LIFO.
d. Average.
16 The cash, land,
inventory, and accounts receivable are listed in the balance sheet. Which of the
following is the correct order they should be found on the balance sheet?
a.
Land, inventory, accounts receivable, cash
b. Cash, accounts receivable,
inventory, land
c. Cash, inventory, accounts receivable, land
d.
Inventory, accounts receivable, cash, land
17 During the taking of
the physical inventory, the company inadvertently counted its inventory as
$89,000 instead of the correct amount of $87,000. Indicate the effect of the
misstatement on the balance sheet of the current year.
a. Assets are
understated by $2,000
b. Stockholders' equity is understated by $2,000
c. Liabilities are overstated by $2,000
d. Stockholders' equity is
overstated by $2,000.
18 During the taking of the physical
inventory, the company inadvertently counted its inventory as $34,000 instead of
the correct amount of $43,000. Indicate the effect of the misstatement on the
balance sheet of the current year.
a. Assets are understated by $9,000
b.
Assets are overstated by $9,000
c. Liabilities are overstated by $9,000
d. Stockholders' equity is overstated by $9,000
19 A business
uses the retail method of inventory costing. The retail value of the inventory
is $478,000. If the ratio of cost to retail price is 60%, what is the amount of
inventory to be reported on the financial statements?
a. $286,800
b.
$478,000
c. $192,200
d. cannot be determined.
20 Using the
following cost data, estimate the cost of ending merchandise inventory.
a.
$57,000
b. $125,000
c. $75,000
d. $123,000
21 An
advantage of using the retail method of inventory costing is:
a. provides
inventory figures for preparing monthly and quarterly financial statements when
the periodic system is used.
b. that it may be used as an aid in taking a
physical inventory.
c. that it will help identify inventory shortages
d.
all are true
password: shiv
Comments
Post a Comment