QUIZ 1 : TOPIC 8 [ACCOUNTING FOR INVENTORIES]

QUIZ 1 : TOPIC 8 [ACCOUNTING FOR INVENTORIES]

read the slide carefully....the information can be used to answers the next questions.

read the slide carefully....the information can be used to answers the next questions.

read the slide carefully....the information can be used to answers the next questions.

Multiple Choice

Factors that affect the selection of an inventory costing method do not include :

• tax effects

• statement of financial position effects

• income statement effects

• perpetual vs periodic inventory system

read the slide carefully....the information can be used to answers the next questions.

read the slide carefully....the information can be used to answers the next questions.

Multiple Choice

The inventory of the business will increase when there are ______________

• sales and purchase returns

• sales and sales returns

• purchases and purchases returns

• purchases and sales returns

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Multiple Choice

The journal entries to record goods returned to the business in periodic inventory system are

• debit sales; credit accounts payable

• debit sales returns; credit accounts payable

• debit sales returns; credit accounts receivable

• debit accounts receivable; credit sales returns

read the slide carefully....the information can be used to answers the next questions.

read the slide carefully....the information can be used to answers the next questions.

Multiple Choice

If the ending inventory is understated, net income will be _________

• understated

• overstated

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read the slide carefully....the information can be used to answers the next questions.

Multiple Choice

The LIFO inventory method assumes that the cost of the latest units purchased are

• the last to be allocated to cost of goods sold.

• the first to be allocated to ending inventory.

• the first to be allocated to cost of goods sold.

• not allocated to cost of goods sold or ending inventory.

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Multiple Choice

In a periods of rising prices, weighted-average will produce :

• higher net income than FIFO

• the same net income as FIFO

• lower net income than FIFO

• net income equal to the specific identification method

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Multiple Choice

Cost of goods available for sale consists of two elements : beginning inventory and __________

• ending inventory

• cost of goods purchased

• cost of goods sold

• all the answers are correct

read the slide carefully....the information can be used to answers the next questions.