ACCT 212 Week 4 Quiz 4
This test was scored at 100%.
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Question 13 pts
(TCO 4) The financial statements of a merchandising
... [Show More] company will show
the same accounts as the financial statements of a service company.
gross profit after net income on the income statement.
inventory as a current asset on the balance sheet.
cost of goods sold as an operating expense on the income statement.
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Question 23 pts
(TCO 4) Two accounts that would appear on the financial statements of a merchandising company that are not needed by a service company are
cost of goods sold and depreciation.
cost of goods sold and net income.
cost of goods sold and inventory.
inventory and depreciation.
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Question 33 pts
(TCO 4) A small _____ would most likely use a perpetual inventory system.
automobile dealership
fabric store
restaurant
flower shop
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Question 43 pts
(TCO 4) All of the following costs would be included in inventory except for
freight-in.
income taxes.
taxes paid on the purchase price.
insurance while in transit.
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Question 53 pts
(TCO 4) The specific-unit-cost method
will produce the highest net income.
is also known as the specific identification method.
will produce the same ending inventory as the average cost method.
is also known as the cost-of-goods sold model.
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Question 63 pts
(TCO 4) To determine the average cost per unit
the beginning inventory is divided by the number of units available.
the cost of goods available is divided by the number of units sold.
the purchases for the period are divided by the number of units available.
the cost of goods available is divided by the number of units available.
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Question 73 pts
(TCO 4) When comparing the results of LIFO and FIFO when inventory costs are decreasing
cost of goods sold will be the lowest using FIFO.
ending inventory will be the highest using FIFO.
cost of goods sold will be the highest using LIFO.
ending inventory will be the highest using LIFO.
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Question 83 pts
(TCO 4) The _____ principle states that the financial statements of a business must report enough information for outsiders to make knowledgeable decisions about the business.
consistency
historical cost
disclosure
conservatism
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Question 93 pts
(TCO 4) The lower-of-cost-or-market rule requires a company to report inventories at the lower of
historical cost or current sales price.
historical cost or current replacement cost.
current replacement cost or sales invoice price.
FIFO cost or LIFO cost.
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Question 103 pts
(TCO 4) The inventory turnover ratio
is determined by dividing cost of goods sold by net sales.
shows how many times the company sold its average level of inventory.
should be high for a company that sells high-priced inventory items.
will be lower for companies that have many low-priced items in their inventory . [Show Less]
