CHAP 8 - ACCOUNTING FOR INVENTORIES

CHAP 8 - ACCOUNTING FOR INVENTORIES

​BY: MADAM INA

Multiple Choice

What doInventories are goods purchased for resale in the normal course of business we mean by inventories?

• Inventories are goods purchased for own used and held in a company warehouse

• Inventories are goods and services sold to customers in normal business operation

• Inventories are goods purchased for resale within the two years it was acquired

• Inventories are goods purchased for resale in the normal course of business

Multiple Choice

In a manufacturing business, inventory that is ready for sale is called

• raw materials inventory.

• work in process inventory.

• finished goods inventory.

• store supplies inventory.

Multiple Choice

Inventory record will be updated continuously after each purchase or sale, these is an advantages of

• Periodic inventory system

• Perpetual inventory system

Multiple Choice

Inventory record will be updated monthly, quarterly or at the end of each accounting period. This statement suitable to explain

• Periodic inventory system

• Perpetual inventory system

Multiple Choice

Which of the following inventory costing method will value the ending inventory costs, closest to the current market value.

• FIRST-IN, FIRST-OUT (FIFO)

• LAST-IN, FIRST-OUT (LIFO)

• WEIGHTED-AVERAGE

Multiple Choice

Which of the following inventory costing method will produce the higher net profit during the inflation period.

• FIRST-IN, FIRST-OUT (FIFO)

• LAST-IN, FIRST-OUT (LIFO)

• WEIGHTED-AVERAGE

Multiple Choice

Which of the following inventory costing method will show the same ending inventory value for both inventory system?

• FIRST-IN, FIRST-OUT (FIFO)

• LAST-IN, FIRST-OUT (LIFO)

• WEIGHTED-AVERAGE