Which inventory valuation method assumes the first (or oldest) items purchased are the first items sold? Weighted Average Inventory Costing Method (WA) Last In, First Out Inventory Costing Method (LIFO) First In, First Out Inventory Costing Method (FIFO) Specific Identification Inventory Costing Method (SI)

First In, First Out Inventory Costing Method (FIFO)

Which inventory valuation method assumes the last (or newest) items purchased are the first items sold? Last In, First Out Inventory Costing Method (LIFO) Specific Identification Inventory Costing Method (SI) First In, First Out Inventory Costing Method (FIFO) Weighted Average Inventory Costing Method (WA)

Last In, First Out Inventory Costing Method (LIFO)

Which inventory valuation method uses a weighted average unit price for all merchandise available for sale to allocate inventory costs? Specific Identification Inventory Costing Method (SI) Weighted Average Inventory Costing Method (WA) Last In, First Out Inventory Costing Method (LIFO) First In, First Out Inventory Costing Method (FIFO)

Weighted Average Inventory Costing Method (WA)

Which of the following statements is true regarding the specific identification inventory costing method? The specific identification method assumes the newest items are sold first. The specific identification method assumes the oldest items are sold first. The specific identification method uses a weighted average for cost allocation. The specific identification method only works if every inventory item has a unique tracking number.

The specific identification method only works if every inventory item has a unique tracking number.

Which of the following statements is true about the FIFO method? The FIFO method assumes the newest items purchased are sold first. The FIFO method uses a weighted average for cost allocation. The FIFO method requires unique tracking numbers for each item. The FIFO method assumes the oldest items purchased are sold first.

The FIFO method assumes the oldest items purchased are sold first.

When prices are increasing over time, which inventory costing method will result in the lowest cost of goods sold? First In, First Out Inventory Costing Method (FIFO) Specific Identification Inventory Costing Method (SI) Last In, First Out Inventory Costing Method (LIFO) Weighted Average Inventory Costing Method (WA)

First In, First Out Inventory Costing Method (FIFO)

When prices are decreasing over time, which inventory costing method will result in the highest cost of goods sold? Specific Identification Inventory Costing Method (SI) Last In, First Out Inventory Costing Method (LIFO) First In, First Out Inventory Costing Method (FIFO) Weighted Average Inventory Costing Method (WA)

Last In, First Out Inventory Costing Method (LIFO)

Which of the following is true regarding the cost flow of inventory and physical flow of inventory? The physical flow of inventory always matches the cost flow. The cost flow of inventory is always affected by changes in purchase prices. The cost flow of inventory is not affected by changes in purchase prices. The physical flow of inventory is independent of the cost flow.

The cost flow of inventory is not affected by changes in purchase prices.

Inventory Valuation Methods: FIFO, LIFO and Average Cost Principles in Accounting

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Finance - Personal Finance

georgepetenjk Created by 10 mon ago

Cards in this deck(39)

Which inventory valuation method assumes the first (or oldest) items purchased are the first items sold?

Which inventory valuation method assumes the last (or newest) items purchased are the first items sold?

Which inventory valuation method involves recording and tracking the unit cost of every item individually from purchase to sale?

Which inventory valuation method uses a weighted average unit price for all merchandise available for sale to allocate inventory costs?

Which of the following isn't an inventory costing method?

Which of the following statements is true regarding the specific identification inventory costing method?

Which of the following statements is true about the FIFO method?

When prices are increasing over time, which inventory costing method will result in the lowest cost of goods sold?

When prices are decreasing over time, which inventory costing method will result in the highest cost of goods sold?

Which of the following is true regarding the cost flow of inventory and physical flow of inventory?

Which inventory costing method assumes the newest items purchased are the first items sold?

Which inventory costing method assumes the oldest items purchased are the first items sold?

Which of the following is an example of a Specific Identification inventory costing method?

What is the primary difference between the FIFO and LIFO methods of inventory costing?

Which one isn't a reason why inventory costing occurs?

What are the four primary inventory costing methods?

What is the SI inventory valuation method?

What is the FIFO inventory valuation method?

What is the LIFO inventory valuation method?

Which of the following is true about the weighted average inventory costing method?

What will happen to net income if the purchase prices regularly increase over time?

What are the key characteristics of the method in relation to items and FIFO?

What is the purpose of the matching principle in accounting?

What is the purpose of disclosing the inventory costing method used in the financial statements?

What is the weighted-average inventory costing method?

What is an example of a unique tracking number that can be used in the specific identification inventory costing method?

Which of the following is not one of the primary inventory costing methods?

What is the purpose of the LCM inventory valuation method?

If after applying the LCM method, an adjustment needs to be made, what did the LCM method uncover?

If after using the LCM method, an adjustment needs to be made, what journal entry is used to record the adjustment in inventory value?

When applying the LCM method, which value is taken into consideration?

How can you identify FIFO in relation to LIFO and method?

What does 'cost' refer to when applying LCM?

What does 'market' refer to when applying LCM?

How does LCM prevent inventory values from being overstated on companies' financial statements?

What is the impact of overstated inventory values on the balance sheet?

What does a company need to know in order to apply the LCM method?

What does the LCM method adjust inventory to?

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