intacc
Authored by macky berries
Mathematics
12th Grade
Used 1+ times
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36 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Statement 1: Further decreases in the amount of NRV will require additional recognition of loss on purchase commitment.
Statement 2: Increases in the amount of NRV may warrant the recognition of gain on reversal of loss on purchase commitment.
Which of these statements is/are correct?
c. Both I and II
d. Neither I nor II
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In recognizing loss on purchase commitment, an entity shall consider all of the following, except
c. The portion that is cancelable and the portion that is noncancelable.
.
d. The quantity of goods already received from the supplier
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The NRV of previously written-down inventory has increased. In recognizing gain on reversal of inventory write-down, which of the following is true?
a. The amount of gain may exceed the previously recognized loss on inventory write-down.
b. The amount of cost of goods sold will be reduced by the amount of gain.
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In accounting for inventory write-down using allowance method, all of these are correct, except
c. The corresponding credit shall be to an allowance account, which is a contra- account against the cost of goods sold.
d. None
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The following correctly states the computation of NRV for each corresponding type of inventory, except
a. Raw materials - estimated selling price of related finished goods less costs to
complete and costs to sell.
b. Finished goods - estimated selling price less costs to sell
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In which of the following circumstances a loss on inventory write-down shall be recognized?
a. When NRV is lower than cost
b. When cost is lower than NRV
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
All of the following can be considered as costs to sell for NRV calculation purposes, except
a. Depreciation of delivery equipment
b. Transport costs if the goods are to be shipped FOB shipping point
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