Principles of Accounting II Quiz II

Which of the following is the type of inventory held by a merchandising company?

• Finished goods inventory

• Merchandise inventory

• Raw materials inventory

• Work-in-process inventory

What is the type of cost-flow assumption that choose the inventory regardless of the flow when the inventory is bought and sold?

• Specific identification

• Average cost

• First-in-first-out

• Last-in-first-out

Which type of inventory cost-flow assumption that is the most suitable for Food and Beverage business?

• Last-in-first-out

• Specific identification

• First-in-first-out

• Average cost

Which type of inventory cost-flow assumption that is the most suitable for vehicle spare part business?

• Last-in-first-out

• Specific identification

• First-in-first-out

• Average cost

Which of the following business that is the most suitable in using Last-in-first-out (LIFO) inventory assumption method?

• Pharmacies

• Fashion

• Jewelry

• Food and Beverage

If the ending inventory is 230 units, how much is the ending inventory in € if the company uses FIFO Periodic?

• €1,150

• €935

• €5,300

• €5,515

If the ending inventory is 230 units, how much is the cost of goods sold if the company uses LIFO Periodic?

• €1,150

• €5,300

• €935

• €5,515

If the ending inventory is 230 units, how much is the ending inventory in € if the company uses Average Cost Periodic?

• €4.61

• €1,150

• €935

• €1,060.30

Which of the following inventory cost-flow assumption that is not accepted by Indonesian Taxation Law?

• First-in-first-out

• Last-in-first-out

• Average cost

• Every cost-flow assumption is acceptable

Which of the following legal forms of business that has a characteristic of mutual agency?

• Privately-held corporation

• Sole proprietorship

• Partnership

• Publicly-held corporation