maaudio51423
New member
- Jul 24, 2008
- 5
- 0
- 1
1.The inventory costing method that assigns the most recent costs to cost of good sold is:
Answer
FIFO.
*LIFO.
average cost.
specific identification.
1 points
Question 2
1.
The two most widely used methods for determining the cost of inventory are:
Answer
specific identification and average cost.
*FIFO and LIFO.
FIFO and average cost.
LIFO and average cost.
1 points
Question 3
1.
During inflationary periods, the use of the FIFO method of costing inventory will result in a greater amount of net income than would result from the use of the LIFO method of costing inventory.
Answer *True False
1 points
Question 4
1.
Inventory costing methods place primary emphasis on assumptions about:
Answer
flow of costs.
*flow of goods or costs depending on the method.
flow of values.
flow of goods.
1 points
Question 5
1.
The FIFO method of costing inventory is based on the assumption that costs are charged against revenues in the order in which they were incurred.
Answer *True False
1 points
Question 6
1.
A 60-day, 10% note for $6,000 dated April 15 is received from a customer on account. The face value of the note is:
Answer *6000
1 points
Question 7
1.
Inventories of merchandising and manufacturing businesses are reported as current assets on the balance sheet.
Answer *True False
1 points
Question 8
1.
Inventory refers to the:
Answer
assets purchased to assist the production process.
materials sold during the year.
claims arising from the purchase of raw material.
*merchandise held for sale in the normal course of business.
1 points
Question 9
1.
After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $500,000 and Allowance for Doubtful Accounts has a balance of $25,000. What is the net realizable value of the accounts receivable?
Answer *475000
1 points
Question 10
1.
One of the weaknesses of the direct write-off method is that it:
Answer
*violates the matching principle.
understates accounts receivable on the balance sheet.
adjusts allowance account the end of the year.
is based on estimates.
Answer
FIFO.
*LIFO.
average cost.
specific identification.
1 points
Question 2
1.
The two most widely used methods for determining the cost of inventory are:
Answer
specific identification and average cost.
*FIFO and LIFO.
FIFO and average cost.
LIFO and average cost.
1 points
Question 3
1.
During inflationary periods, the use of the FIFO method of costing inventory will result in a greater amount of net income than would result from the use of the LIFO method of costing inventory.
Answer *True False
1 points
Question 4
1.
Inventory costing methods place primary emphasis on assumptions about:
Answer
flow of costs.
*flow of goods or costs depending on the method.
flow of values.
flow of goods.
1 points
Question 5
1.
The FIFO method of costing inventory is based on the assumption that costs are charged against revenues in the order in which they were incurred.
Answer *True False
1 points
Question 6
1.
A 60-day, 10% note for $6,000 dated April 15 is received from a customer on account. The face value of the note is:
Answer *6000
1 points
Question 7
1.
Inventories of merchandising and manufacturing businesses are reported as current assets on the balance sheet.
Answer *True False
1 points
Question 8
1.
Inventory refers to the:
Answer
assets purchased to assist the production process.
materials sold during the year.
claims arising from the purchase of raw material.
*merchandise held for sale in the normal course of business.
1 points
Question 9
1.
After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $500,000 and Allowance for Doubtful Accounts has a balance of $25,000. What is the net realizable value of the accounts receivable?
Answer *475000
1 points
Question 10
1.
One of the weaknesses of the direct write-off method is that it:
Answer
*violates the matching principle.
understates accounts receivable on the balance sheet.
adjusts allowance account the end of the year.
is based on estimates.