Question: Mod. 4ACTMastery Exercise Category: Mastery Exercises Period: SPRING17-C-8 Router Tab My Submissions Tab Test/Quiz Tab - Selected Questions 1-10 of 10 | Page 1 of
Mod. 4ACTMastery Exercise
Category: Mastery Exercises
Period: SPRING17-C-8
Router
Tab
My Submissions
Tab
Test/Quiz
Tab - Selected
Questions 1-10 of 10 | Page 1 of 1
multiple_choice402185570Question 1 (1 point)
The factor which determines whether or not goods should be included in a physical count of inventory is ______.
| a | physical possession |
| b | legal title |
| c | management's judgment |
| d | whether or not the purchase price has been paid |
multiple_choice402185596Question 2 (1 point)
Inventory costing methods place primary reliance on assumptions about the flow of _____.
| a | good |
| b | costs |
| c | resale prices |
| d | values |
multiple_choice402185540Question 3 (1 point)
When goods are returned that relate to a prior cash sale ______.
| a | the Sales Returns and Allowances account should not be used |
| b | the Cash account will be credited |
| c | Sales Returns and Allowances will be credited |
| d | Accounts Receivable will be credited |
multiple_choice402185550Question 4 (1 point)
The Sales Returns and Allowances account does not provide information to management about ______.
| a | possible inferior merchandise |
| b | the percentage of credit sales versus cash sales |
| c | inefficiencies in filling orders |
| d | errors in filling customers |
multiple_choice402185622Question 5 (1 point)
Reporting which one of the following allows analysts to make adjustments to compare companies using different cost flow methods?
| a | FIFO reserve |
| b | inventory turnover |
| c | LIFO reserve |
| d | current replacement cost |
multiple_choice402185516Question 6 (1 point)
Which of the following items does not result in an adjustment in the merchandise inventory account under a perpetual system?
| a | a purchase of merchandise |
| b | a return of merchandise inventory to the supplier |
| c | payment of freight costs for goods shipped to a customer |
| d | payment of freight costs for goods received from a supplier |
multiple_choice402185530Question 7 (1 point)
If a purchaser using a perpetual inventory system pays the transportation costs, then the _____.
| a | Inventory account is increased |
| b | Inventory account is not affected |
| c | Freight-Out account is increased |
| d | Delivery Expense account is increased |
multiple_choice402185614Question 8 (1 point)
The LIFO reserve is _____.
| a | the difference between the value of the inventory under LIFO and the value under FIFO |
| b | an amount used to adjust inventory to the lower of cost or market |
| c | the difference between the value of the inventory under LIFO and the value under average cost |
| d | the amount used to adjust inventory to history cost |
multiple_choice402185578Question 9 (1 point)
If goods in transit are shipped FOB destination ____________.
| a | the seller has legal title to the goods until they are delivered |
| b | 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 |
multiple_choice402185588Question 10 (1 point)
Bonkers Bananas has the following inventory data:
| July 1 | Beginning inventory | 20 units at $20 | $ 400 |
| July 7 | Purchases | 70 units at $21 | $1,470 |
| July 22 | Purchases | 10 units at $22 | $ 220 |
|
| $2,090 | ||
A physical count of merchandise inventory on July 30 reveals that there are 25 units on hand. Using the LIFO inventory method, the amount allocated to ending inventory for July is ______.
| a | $550 |
| b | $505 |
| c | $535 |
| d | $500 |
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