1. When the perpetual inventory system is used, the inventory sold is shown on the income...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. When the perpetual inventory system is used, the inventory sold is shown on the income statement as a. cost of goods sold b. purchases c. purchases returns and allowances d. net purchases 2. During times of rising prices, which of the following is not an accurate statement? a. Average costing will yield results that are between those of FIFO and LIFO. b. LIFO will result in a higher cost of goods sold than FIFO. c. FIFO will result in a higher net income than LIFO. d. LIFO will result in higher income taxes than FIFO. 3. Which of the lists below shows accounts that would be closed at the end of the fiscal period? a. Sales, Accounts Payable, Dividends, and Inventory. b. Cost of Goods Sold, Supplies, Wages Payable, and Dividends c. Retained Earnings, Depreciation Expense, Notes Payable, Store Supplies d. Sales, Cost of Goods Sold, Supplies Expense, and Wages Expense 4. Which of the following methods is appropriate for a business whose inventory consists of a relatively small number of unique, high-cost items? a. FIFO b. LIFO c. average d. specific identification 5. What is the major difference between a periodic and perpetual inventory system? a. Under the periodic inventory system, the purchase of inventory will be debited to the Purchases account. b. Under the periodic inventory system, no journal entry is recorded at the time of the sale of inventory for the cost of the inventory. c. Under the periodic inventory system, all adjustments such as purchases returns and allowances and discounts are reconciled at the end of the accounting period. d. All of the answers are correct. 1| Page 6. The form of income statement that derives its name from the fact that the total of all expenses is deducted from the total of all revenues is called a a. multiple-step statement b. revenue statement e. operating income statement d. single-step statement 7. What is the term applied to the excess of sales over the cost of goods sold? a. gross profit b. operations e. net income d. gross sales 8. Inventory shrinkage is recorded when a. merchandise is returned by a buyer b. merchandise purchased from a seller is incomplete or short c. merchandise is returned to a seller d. there is a difference between a physical count of inventory and inventory records 9. Taking a physical count of inventory a. is not necessary when a periodic inventory system is used b. should be done near year-end c. has no internal control relevance d. is not necessary when a perpetual inventory system is used 10. Where are selling and administrative expenses found on the multiple-step income statement? a. before gross profit b. after sales and before gross profit c. after net income and before expenses d. after gross profit 11. Who is responsible for the freight costs when the terms are FOB shipping point? a. the ultimate customer b. the buyer c. the seller d. either the seller or the buyer 12. Under a periodic inventory system a. accounting records continuously disclose the amount of inventory b. a separate account for each type of merchandise is maintained in a subsidiary ledger c. a physical inventory is taken at the end of the period d. inventory is debited when goods are returned to vendors 21 Page 1. When the perpetual inventory system is used, the inventory sold is shown on the income statement as a. cost of goods sold b. purchases c. purchases returns and allowances d. net purchases 2. During times of rising prices, which of the following is not an accurate statement? a. Average costing will yield results that are between those of FIFO and LIFO. b. LIFO will result in a higher cost of goods sold than FIFO. c. FIFO will result in a higher net income than LIFO. d. LIFO will result in higher income taxes than FIFO. 3. Which of the lists below shows accounts that would be closed at the end of the fiscal period? a. Sales, Accounts Payable, Dividends, and Inventory. b. Cost of Goods Sold, Supplies, Wages Payable, and Dividends c. Retained Earnings, Depreciation Expense, Notes Payable, Store Supplies d. Sales, Cost of Goods Sold, Supplies Expense, and Wages Expense 4. Which of the following methods is appropriate for a business whose inventory consists of a relatively small number of unique, high-cost items? a. FIFO b. LIFO c. average d. specific identification 5. What is the major difference between a periodic and perpetual inventory system? a. Under the periodic inventory system, the purchase of inventory will be debited to the Purchases account. b. Under the periodic inventory system, no journal entry is recorded at the time of the sale of inventory for the cost of the inventory. c. Under the periodic inventory system, all adjustments such as purchases returns and allowances and discounts are reconciled at the end of the accounting period. d. All of the answers are correct. 1| Page 6. The form of income statement that derives its name from the fact that the total of all expenses is deducted from the total of all revenues is called a a. multiple-step statement b. revenue statement e. operating income statement d. single-step statement 7. What is the term applied to the excess of sales over the cost of goods sold? a. gross profit b. operations e. net income d. gross sales 8. Inventory shrinkage is recorded when a. merchandise is returned by a buyer b. merchandise purchased from a seller is incomplete or short c. merchandise is returned to a seller d. there is a difference between a physical count of inventory and inventory records 9. Taking a physical count of inventory a. is not necessary when a periodic inventory system is used b. should be done near year-end c. has no internal control relevance d. is not necessary when a perpetual inventory system is used 10. Where are selling and administrative expenses found on the multiple-step income statement? a. before gross profit b. after sales and before gross profit c. after net income and before expenses d. after gross profit 11. Who is responsible for the freight costs when the terms are FOB shipping point? a. the ultimate customer b. the buyer c. the seller d. either the seller or the buyer 12. Under a periodic inventory system a. accounting records continuously disclose the amount of inventory b. a separate account for each type of merchandise is maintained in a subsidiary ledger c. a physical inventory is taken at the end of the period d. inventory is debited when goods are returned to vendors 21 Page
Expert Answer:
Answer rating: 100% (QA)
54 Ans Sol 55 Ans Sol Area of the region Tis 0000086 T is an equilateral triangle wi... View the full answer
Related Book For
Financial Accounting
ISBN: 978-0134564142
6th Canadian edition
Authors: Walter Jr. Harrison, Charles T. Horngren, C. William Thomas, Greg Berberich, Catherine Seguin
Posted Date:
Students also viewed these accounting questions
-
The Taylor Company Limited reported a cost of goods sold of $640,000 last year, when 20,000 units were produced and sold. The cost of goods sold was 35% materials, 42% direct labour, and 23%...
-
The Robinson Company had a cost of goods sold of $1,000,000 in 2014 and $1,200,000 in 2015. a. Calculate the inventory turnover for each year. Comment on your findings. b. What would have been the...
-
A firm had sales of $5,000,000 and incurred a cost of goods sold equal to $4,500,000. The firms operating expenses were $130,000, and its increases in retained earnings was $40,000 for the year....
-
A cell uses 90 kg of a certain material each day. The material is transported in vats that hold 54 kg each. Cycle time for a kanban is about two hours. The manager has assigned a safety factor of...
-
For each of the following entries, enter the letter of the explanation that most closely describes it in the space beside each entry. (You can use letters more than once.) A. To record payment of a...
-
1. Has Google implemented a strategy that serves all stakeholders ? 2. How can Google respect privacy and still maintain its profitability? 3. How will increasing global regulation of privacy affect...
-
How can you use a basic search on the Internet to help you in your informal fact gathering and investigation?
-
Information on Canyon Chemicals direct materials costs follows: Quantities of chemical Y purchased and used . . . . . 28,800 gallons Actual cost of chemical Y used . . . . . . . . . . . . . . ....
-
A fifteen-year,8 percent, semi-annual pay, coupon bond, is callable in five years at a call price of $1,080. If the bond is selling for $1,050, what is the Yield to Call (YTC) of the bond?
-
J&B Trucking Co. has net book value of $10,000 left for equipment. None of this equipment was purchased during the year. The equipment is amortized using declining balance at a rate of 20% per year....
-
Calculate the unit cost of each product, taking into account of the recent management accountant's investigation.
-
While the individual states have different approaches to establishing their constitutions, they all have central elements that guide the setup and management of powers of the state government. This...
-
4. A point source Gaussian plume model for a power plant uses 50 m as the effective stack height (see Figure P7.32). The night is overcast. (Note: This is not the same as "cloudy" in this model;...
-
A cosmic ray proton moving toward the Earth at 3.5 107 m/s experiences a magnetic force of 1.8 10-16 N .What is the strength of the magnetic field if there is a 45 angle between it and the proton's...
-
4. Beach Bums is a popular beachside store. Becky, owner of the Beach Bums, is deciding how much refrigerator space to devote to four different drinks. Pertinent data on these four drinks are as...
-
For each of the functions given below, find the least positive integer n such that f(x) is O(n) for each of the following functions: (a) f(x)=3+5* (b) f(x)=3.5 (c) f(x) = 2 log(2) (d) f(x) = 7 x7
-
CSC142 Project 2: Draw Curves from Straight Lines 1 Objective In this program you will use existing objects. You will also learn about and use graphics coordinates. 2 Input The only input comes from...
-
Which internal control principle is especially diffi cult for small organizations to implement? Why?
-
Loblaws, one of the nation's largest grocery retailers, reported the following information (adapted) for its fiscal year ended January 31, 2017. _____________________________ January 31, 2017...
-
Prepare a horizontal analysis of the comparative income statement of Stamps Music Ltd. Round percentage changes to the nearest one-tenth percent (three decimal places). Stamps Music Ltd. Comparative...
-
Consider the unadjusted trial balance of Creative Advertising Ltd. at October 31, 2017, and the related month-end adjustment data. Adjustment data: a. Accrued advertising revenue at October 31,...
-
Which inventory costing method results in the lowest net income during a period of rising inventory costs? a. Specific-unit cost b. First-in, first out (FIFO) c. Weighted-average cost d. None of the...
-
Review the following data: Which of the following depicts the proper account balance after the application of the lower-of-cost-and-netrealizable-value rule? a. Cost of goods sold will be \(\$...
-
Describe how lists are used in QuickBooks Accountant.
Study smarter with the SolutionInn App