16. The consistent application of an inventory costing method is essential for a. conservatism. b. accuracy....

Transcribed Image Text:

16. The consistent application of an inventory costing method is essential for a. conservatism. b. accuracy. Ce comparability. d. efficiency. 17. Which of the following statements is correct with respect to inventories? a. The FIFO method assumes that the costs of the earliest goods acquired are the last to be sold. b. It is generally good business management to sell the most recently acquired goods first. Under FIFO, the ending inventory is based on the latest units purchased. d. FIFO seldom coincides with the actual physical flow of inventory. C 18. If goods in transit are shipped FOB destination the seller has legal title to the goods until they are delivered. the buyer has legal title to the goods until they are delivered. c. the transportation company has legal title to the goods while the goods are in transit. d. no one has legal title to the goods until they are delivered. 19. Net sales is sales revenue less a. sales discounts. b. sales returns. с 20. On a classified balance sheet, inventory is classified as a. an intangible asset. C b. property, plant and equipment. Ⓒa current asset. d. a long-term investment. Csales returns and allowances. d. sales discounts and sales returns and allowances. 21. Which of the following is not a true statement about a multiple-step income statement? a. Operating expense are similar for merchandising and service enterprises. b. There may be a section for non-operating activities. c. There may be a section for operating assets. There is a section for cost of goods sold. Which of the following accounts has a normal credit balance? a. Sales Returns and Allowances. b. Sales Discounts. Sales Revenue. d. Selling Expense. Sales Returns and Allowances account is classified as a(n) a. asset account. contra asset account 16. The consistent application of an inventory costing method is essential for a. conservatism. b. accuracy. Ce comparability. d. efficiency. 17. Which of the following statements is correct with respect to inventories? a. The FIFO method assumes that the costs of the earliest goods acquired are the last to be sold. b. It is generally good business management to sell the most recently acquired goods first. Under FIFO, the ending inventory is based on the latest units purchased. d. FIFO seldom coincides with the actual physical flow of inventory. C 18. If goods in transit are shipped FOB destination the seller has legal title to the goods until they are delivered. the buyer has legal title to the goods until they are delivered. c. the transportation company has legal title to the goods while the goods are in transit. d. no one has legal title to the goods until they are delivered. 19. Net sales is sales revenue less a. sales discounts. b. sales returns. с 20. On a classified balance sheet, inventory is classified as a. an intangible asset. C b. property, plant and equipment. Ⓒa current asset. d. a long-term investment. Csales returns and allowances. d. sales discounts and sales returns and allowances. 21. Which of the following is not a true statement about a multiple-step income statement? a. Operating expense are similar for merchandising and service enterprises. b. There may be a section for non-operating activities. c. There may be a section for operating assets. There is a section for cost of goods sold. Which of the following accounts has a normal credit balance? a. Sales Returns and Allowances. b. Sales Discounts. Sales Revenue. d. Selling Expense. Sales Returns and Allowances account is classified as a(n) a. asset account. contra asset account

Answer rating: 100% (QA)

Answer c comparability Explanation Financial information of a reporting entity will be more useful i... View the full answer