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ACCTG 211 Inventory Valuation

Authored by Dr. Paz

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ACCTG 211 Inventory Valuation
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7 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following assets must be reported at the  lower-of-cost-or-market value?

AR
Merchandise Inventory
Prepaid Insurance
Notes Receivable

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Misty, Inc. had  24,000 units of ending inventory that were recorded at the cost of  $8.00 per unit using the FIFO method. The current replacement cost is  $4.50 per unit. Which of the following amounts would be reported as Ending Merchandise Inventory on the balance sheet using the  lower-of-cost-or-market rule?

$192,000

$216,000

$108,000

$300,000

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

When a company uses the perpetual inventory​ method, which of the following would be the entry to adjust inventory to​ lower-of-cost-or-market?

debit Merchandise Inventory and credit Cost of Goods Sold
debit Loss on Inventory and credit Merchandise Inventory
debit Merchandise Inventory and credit Inventory Adjustment
debit Cost of Goods Sold and credit Merchandise Inventory

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is affected as a result of an error in performing the physical count of inventory at the end of the accounting​ period?

sales revenue
operating expenses
net income
net cost of purchases

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Under the periodic inventory​ system, which of the following amounts will always stay the same regardless of the inventory valuation method​ used?

purchases
gross profit
COGS
ending merchandise inventory

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A company that uses the periodic inventory system provided the following  information:
1/ Beginning inventory  $5,000
2. Purchases  $130,000
3. Purchase discounts  $2,000
4. Purchase returns and allowances  $600
At the end of the  period, the company does an inventory count and finds  $16,000 worth of inventory on hand. What is the amount of cost of goods  sold?


$132,400

$116,400

$148,400

$127,400

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following amounts could differ if a​ company, using the LIFO inventory costing​ method, shifts from a periodic inventory system to a perpetual inventory​ system?

ending merchandise inventory
purchases
sales revenue
purchase returns

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