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Chapter 6 Review

Authored by Jennifer Herber

Business

9th - 12th Grade

16 Questions

Used 7+ times

Chapter 6 Review
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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which principle or concept states that businesses should use the same accounting methods and procedures from period to period?

Disclosure

Conservatism

Consistency

Materiality

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which inventory costing method assigns to ending merchandise inventory the newest - most recent - costs incurred during the period

FIFO

Weighted Average

Specific Identification

LIFO

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Media Image

Assume Nile began April with 14 units of inventory that cost a total of $266. During April, Nile purchased and sold goods shown. Under FIFO, how much is Nile's COGS for the sale on April 14?

$1,106

$686

$1,400

$700

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Media Image

Suppose Nile used the weighted average inventory method. Nile began April with 14 units of inventory that cost $266 and made the purchases shown. Compute the weighted average cost of the inventory on hand at April 8. Round to the nearest cent.

$21.00

$19.50

$19.75

Cannot be determined

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which inventory costing method results in the lowest net income during a period of rising inventory costs?

Weighted Average

Specific Identification

FIFO

LIFO

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is most closely linked to accounting conservatism?

Lower of Cost or Market Rule

Materiality Concept

Disclosure Principle

Consistency

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

At December 31, 2016, Stevenson Company overstated ending inventory by $36,000. How does this error affect cost of goods sold and net income for 2016?

Overstates cost of goods sold and understates net income

Understates cost of goods sold and overstates net income

Leaves both cost of goods sold and net income correct because the errors cancel

each other

Overstates both cost of goods sold and net income

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