ACCT CH7

if a company has a cost of goods sold of $1,000,000 and an average inventory of $200,000 what would the Turnover ratio be?

• 5

• .2

• .25

• 2.5

A decreasing inventory turnover ratio

• Indicates a longer time span between the ordering and receiving of inventory.

• Indicates a shorter time span between the ordering and receiving of inventory.

• Indicates a shorter time span between the purchase and sale of inventory.

• Indicates a longer time span between the purchase and sale of inventory.

LIFO stands for....

The inventory costing method selected by a company can affect

• The balance sheet.

• The income statement.

• The statement of retained earnings.

• All of these

Which inventory method provides a better matching of current costs with sales revenue on the income statement but also results in older values being reported for inventory on the balance sheet?

• FIFO

• Weighted Average

• LIFO

• Specific Identification

A Increasing inventory turnover ratio

• Indicates a longer time span between the ordering and receiving of inventory.

• Indicates a shorter time span between the ordering and receiving of inventory.

• Indicates a shorter time span between the purchase and sale of inventory.

• Indicates a longer time span between the purchase and sale of inventory.

Which of the following IS an account name for a specific type of inventory?

• Assets

• Finished Goods

• Goods Available for sale

• Supplies Expense