Accounting MidTerm 2024

Which inventory method is used to continuously track inventory amounts?

• Manufacturing Inventory

• Merchandise Inventory

• Periodic Inventory System

• Perpetual Inventory System

What is classified as a short-term asset because it can be converted into cash within a year, for example, raw materials, work-in-process, finished products?

• Manufacturing Inventory

• Merchandise Inventory

• Periodic Inventory System

• Perpetual Inventory System

Which inventory method is used to update inventory balances periodically instead of constantly?

• Manufacturing Inventory

• Merchandise Inventory

• Periodic Inventory System

• Perpetual Inventory System

What are goods for resale which are classified as short-term assets because they can be converted to cash within a year?

• Manufacturing Inventory

• Merchandise Inventory

• Periodic Inventory System

• Perpetual Inventory System

What does "First In, First Out (FIFO)" mean in accounting?

• Last items purchased are the first to be sold

• First items bought are to be the first items sold

• Company's merchandise, materials, and products which have not been sold

• Revenue account which represents the sold inventory cost during a period

What is the definition of "Inventory" in accounting?

• Revenue account which represents the sold inventory cost during a period

• First items bought are to be the first items sold

• Company's merchandise, materials, and products which have not been sold

• Last items purchased are the first to be sold

What does "Last In, First Out (LIFO)" mean in accounting?

• First items bought are to be the first items sold

• Company's merchandise, materials, and products which have not been sold

• Last items purchased are the first to be sold

• Revenue account which represents the sold inventory cost during a period

What does "Cost of Goods Sold" represent in accounting?

• Company's merchandise, materials, and products which have not been sold

• First items bought are to be the first items sold

• Revenue account which represents the sold inventory cost during a period

• Last items purchased are the first to be sold

What is the term for cash flow resulting from transactions with creditors or investors used to fund the activities of the business?

• Sales Return

• Investing Activities

• Financing Activities

• Operating Activities

What is the term for merchandise returned by a buyer to the seller/producer, often as a result of damaged or defective goods?

• Sales Return

• Investing Activities

• Financing Activities

• Operating Activities