inventory

Which of the followings is not an inventory of the POPULAR Bookstore?

• POA assessment books

• Photo albums

• Stationery

• Motor vehicle

Which of the followings should not be included in the cost of purchase of a batch of slippers?

• wages for staff to repackage the slippers

• wages for store manager

• import tax on the slippers

• insurance for shipment of this batch of slippers

What is the journal entry for purchasing inventory?

• Dr Trade payables Cr Inventory

• Dr Trade receivables Cr Sales revenue

• Dr Cost of sales Cr Inventory

• Dr Inventory Cr Trade payables

What is the journal entry for recording the Cost of sales ?

• Dr inventory Cr Cost of sales

• Dr Cost of sales Cr inventory

• Dr Cost of sales Cr Sales revenue

• Dr Cost of sales Cr Trade payable

What method is used to calculate the Cost of Sales

• Prudence Method

• FIFO Method

• Lower of cost or NRV

• No specific method

When the inventory of year 2017 is overstated, what is the effects on 2017 and 2018 profits?

• 2017 Profits: Overstated, 2018 Profit: No effect

• 2017 Profits: Undertated, 2018 Profit: Understated

• 2017 Profits: Overstated, 2018 Profit: Overrstated

• 2017 Profits: Overstated, 2018 Profit: Understated

The cost of inventory is $100. The NRV is $80. Which inventory is recorded in the Financial position?

• 100

• 80

• 20

• 180

The cost of inventory is $100. The NRV is $80. What is the journal entry to record the loss?

• Dr Impairment loss on inventory 80 Cr Inventory 80.

• Dr Impairment loss on inventory 20 Cr Inventory 20.

• Dr inventory 20 Cr impairment loss on inventory 20.

• No loss is needed to record.

Impairment loss on inventory is classified as which item in ALICE?

• Expenses

• income

• assets

• liability

Beg balance of 10 units at $100.

Bought 10 units at $200.

Bought 20 units at $400.

The business sold 20 units for $ 500 cash. Prepare the journal entry to record this transactions

• Dr cash in hand 500 Cr Sales revenue 500

  Dr Cost of sales 300 Cr inventory 300

• Dr cash in hand 500 Cr Sales revenue 500

  Dr Cost of sales 400 Cr inventory 400

• Dr cash in hand 500 Cr inventory 500

  Dr Cost of sales 300 Cr sales revenue 300