Act105 week 4 - Study guides, Class notes & Summaries

Question 1 of 10 10.0/ 10.0 Points Inventory costs include only the seller’s invoice price less any purchase discounts. A. True B. False Answer Key: False Question 2 of 10 10.0/ 10.0 Points The following principle requires a company to show in its financial statements by means of a footnote or other manner, the inventory costing method used: A.conservation principle. B.full-disclosure principle. C.consistency principle

Question 1 of 10 10.0/ 10.0 Points When the periodic method of inventory accounting is used, purchases are recorded in the Inventory account. A. True B. False Answer Key: True Question 2 of 10 10.0/ 10.0 Points On January 1, 2007, Nichols Company’s inventory of Item X consisted of 2,000 units that cost $8 each. During 2007 the company purchased 5,000 units of Item X at $10, each, and it sold 4,500 units. Periodic inventory procedure is used. Cost of goods sold using LIFO is: A.$20,...

Part 1 of 1 - 60.0/ 100.0 Points Question 1 of 10 10.0/ 10.0 Points If the ending inventory is understated by $150, the cost of goods sold will be: A.overstated by $300. B.overstated by $250. C.overstated by $150. D.understated by $250. E.understated by $150. Answer Key: C Question 2 of 10 0.0/ 10.0 Points The system that continuously provides the cost of the inventory on hand is called: A.average cost. B.periodic. C.perpetual. D.gross profit. E.physical. Answer

Question 1 of 10 10.0/ 10.0 Points When the periodic method of inventory accounting is used, purchases are recorded in the Inventory account. A. True B. False Answer Key: True Question 2 of 10 10.0/ 10.0 Points On January 1, 2007, Nichols Company’s inventory of Item X consisted of 2,000 units that cost $8 each. During 2007 the company purchased 5,000 units of Item X at $10, each, and it sold 4,500 units. Periodic inventory procedure is used. Cost of goods sold using LIFO is: A.$20,...

Question 1 of 10 0.0/ 10.0 Points An overstated ending inventory leads to understated net income. A. True B. False Answer Key: False Question 2 of 10 10.0/ 10.0 Points During a period of rising prices, which inventory costing method might be expected to give the lowest valuation for inventory on the balance sheet? A.LIFO B.FIFO C.Weighted-average cost D.Specific identification Answer Key: A Question 3 of 10 0.0/ 10.0 Points When the perpetual inventory method is used, it is ne...