ACCT212 Quiz Week 4

$4.50

ACCT212 Quiz Week 4
(TCO 4) Two accounts that would appear on the financial statements of a merchandising…

SKU: ACCT212 Quiz Week 4 Categories: , Tags: , ,

Description

ACCT212 Quiz Week 4 

ACCT212 Quiz Week 4

A+

(TCO 4) For a merchandising company

The balance sheet reports the cost of the inventory that was on hand at the beginning of the period.

The income statement reports the cost of the inventory sold during the period.

Ending inventory can be an asset or an expense.

Inventory is generally not a significant factor in their operations.

(TCO 4) Two accounts that would appear on the financial statements of a merchandising company that are not needed by a service company are

Cost of goods sold and depreciation.

Cost of goods sold and net income.

Cost of goods sold and inventory.

Inventory and depreciation.

(TCO 4) A periodic inventory system

Is used for inexpensive goods.

Is not expensive to maintain.

Does not keep a running record of inventory on hand.

Is all of the above.

(TCO 4) The cost of inventory is the

Purchase price.

Sum of all the costs incurred to bring the inventory to its intended use.

Sum of all the costs incurred to bring the inventory to its intended use, plus any discounts and allowances.

Sum of all the costs incurred to bring the inventory to its intended use, less any discounts and allowances.

(TCO 4) ABC Auto Sales sells new Lexus vehicles. ABC will most likely use the _____ method to cost its ending inventory.

First-in, first-out

Last-in, first-out

Specific-unit-cost

Weighted-average

(TCO 4) To determine the average cost per unit

The beginning inventory is divided by the number of units available.

The cost of goods available is divided by the number of units sold.

The purchases for the period are divided by the number of units available.

The cost of goods available is divided by the number of units available.

(TCO 4) Under the _____ method, ending inventory is based on the costs of the most recent purchases.

Average-cost

FIFO

LIFO

Specific-identification

(TCO 4) The _____ principle states that the financial statements of a business must report enough information for outsiders to make knowledgeable decisions about the business.

Consistency

Historical cost

Disclosure

Conservatism

(TCO 4) When applying the lower-of-cost-or-market rule, market value generally refers to

FIFO cost using the periodic method.

LIFO cost using the periodic method.

Current sales price of the inventory.

Current replacement cost of the inventory.

(TCO 4) The gross profit rate is calculated as

Cost of goods sold divided by net sales revenue.

Net sales revenue minus gross profit on sales.

Net sales revenue minus cost of goods sold.

Gross profit divided by net sales revenue.