100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Accounting 26th Edition Chapter 07 Inventories $3.89   Add to cart
Quickly navigate to
Preview
  2.  
  3. Chapter 07 Inventories
  4.  
  5. Chapter 07 Inventories
  6.  
  7. Chapter 07 Inventories

Exam (elaborations)

Accounting 26th Edition Chapter 07 Inventories
 3 views  0 purchase
  • Course
  • Chapter 07 Inventories
  • Institution
  • Chapter 07 Inventories

Chapter 07 Inventories ACCOUNTING 26TH EDITION BY WARREN -TEST BANK

Preview 4 out of 103  pages

Document information

  • January 8, 2024
  • 103
  • 2022/2023
  • Exam (elaborations)
  • Questions & answers

Subjects

  • chapter07inventories
  • accounting 26th edition by warren

Written for

  • Chapter 07 Inventories
  • Chapter 07 Inventories
  • Chapter 07 Inventories
All documents for this subject (1)

Seller

avatar-seller
ExamsExpert

Reviews received

Content preview

CHAPTER 7: INVENTORIES
1. One of the two internal control procedures over inventory is to properly report inventory on the
financial statements.
a. True
b. False

ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.07-01 - 07-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.17 - Inventories Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic

2. A purchase order establishes an initial record of the receipt of the inventory.
a. True
b. False

ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.07-01 - 07-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.17 - Inventories Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic

3. A perpetual inventory system is an effective means of control over inventory.
a. True
b. False

ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.07-01 - 07-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.17 - Inventories Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic




© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

,Chapter 7: Inventories



4. A subsidiary inventory ledger can be an aid in maintaining inventory levels at their proper levels.
a. True
b. False

ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.07-01 - 07-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.17 - Inventories Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic

5. Safeguarding inventory and proper reporting of the inventory in the financial statements are the reasons
for controlling the inventory.
a. True
b. False

ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.07-01 - 07-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.17 - Inventories Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic

6. Inventory controls start when the merchandise is shelved in the store area.
a. True
b. False

ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.07-01 - 07-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.17 - Inventories Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic

7. A physical inventory should be taken at the end of every month.
a. True
b. False

ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.07-01 - 07-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.17 - Inventories Reporting
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

,Chapter 7: Inventories



ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic

8. The specific identification inventory method should be used when the inventory consists of identical, low-cost
units that are purchased and sold frequently.
a. True
b. False

ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.07-02 - 07-02
ACCREDITING STANDARDS: ACCT.ACBSP.APC.17 - Inventories Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic

9. The choice of an inventory costing method has no significant impact on the financial statements.
a. True
b. False

ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.07-02 - 07-02
ACCREDITING STANDARDS: ACCT.ACBSP.APC.17 - Inventories Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic

10. Of the three widely used inventory costing methods (FIFO, LIFO, and average cost), the LIFO method of
costing inventory assumes costs are charged based on the most recent purchases first.
a. True
b. False

ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.07-02 - 07-02
ACCREDITING STANDARDS: ACCT.ACBSP.APC.17 - Inventories Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic




© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

, Chapter 7: Inventories




11. When using the FIFO inventory costing method, the most recent costs are assigned to the cost of merchandise sold.
a. True
b. False

ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.07-02 - 07-02
ACCREDITING STANDARDS: ACCT.ACBSP.APC.17 - Inventories Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic

12. FIFO is the inventory costing method that follows the physical flow of the goods.
a. True
b. False

ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.07-02 - 07-02
ACCREDITING STANDARDS: ACCT.ACBSP.APC.17 - Inventories Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic

13. Under the LIFO inventory costing method, the most recent costs are assigned to ending inventory.
a. True
b. False

ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.07-02 - 07-02
ACCREDITING STANDARDS: ACCT.ACBSP.APC.17 - Inventories Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic

14. The weighted average inventory cost flow method is the least used of the inventory costing methods.
a. True
b. False

ANSWER: True
DIFFICULTY: Moderate
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.07-02 - 07-02
ACCREDITING STANDARDS: ACCT.ACBSP.APC.17 - Inventories Reporting
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller ExamsExpert. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $3.89. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

75632 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$3.89
  • (0)
  Add to cart