Accounting Quiz

Beginning inventory plus the cost of goods purchased equals ___________________

• cost of goods available for sale.

• net purchases.

• total goods purchased.

• cost of goods sold.

Which inventory system records inventory continuously?

• Periodic.

• Moving Average.

• Last-In, First-Out (LIFO)

• Perpetual.

The most outdated purchases included in the inventory value is found in the ________ method

• Standard Cost.

• Moving Average.

• Last-In, First-Out (LIFO)

• First-In, First-Out (FIFO)

Under a perpetual inventory system which account should be debited to record sales on account?

• Accounts Payable.

• Purchases.

• Accounts Receivable.

• Inventory.

The First-In, First-Out (FIFO) inventory method assumes that the cost of the latest units purchased are

• the last to be allocated to cost of goods sold.

• the last to be allocated to ending inventory.

• the first to be allocated to cost of goods sold.

• not allocated to cost of goods sold or ending inventory.

The Last-In, First-Out (LIFO) inventory method assumes that the cost of the latest units purchased are

• the last to be allocated to cost of goods sold.

• the first to be allocated to ending inventory.

• the first to be allocated to cost of goods sold.

• not allocated to cost of goods or ending inventory.

Which of the following is NOT an example for non-current asset?

• Supplies.

• Building.

• Office Equipment.

• Vehicle.

Which statement is NOT TRUE about capital expenditure?

• Recorded in Statement of Financial Position.

• Increase the business assets.

• Decrease the business profit.

• The benefit of which is received over a period of more than one year.

Below are the cost incurred to determine the cost of land EXCEPT

• Brokerage commission.

• Price cost.

• Lawyer fees.

• Cleaning maintenance.

Depreciation is a process of

• Asset Devaluation.

• Cost Accumulation.

• Cost Allocation.

• Asset Valuation.