DeVry University - ACCT 212 Week 4 Checkpoint, Questions And Answers.1. Question :
(TCO 4) For a merchandising company
Student Answer: the balance sheet
... [Show More] reports the cost of the inventory that was on hand
at the beginning of the period.
the income statement reports the cost of the inventory sold during the
period.
ending inventory can be an asset or an expense.
inventory is generally not a significant factor in their operations.
Instructor
Explanation:
See Chapter 6.
Points Received: 3 of 3
Comments:
Question 2.Question :
(TCO 4) The cost of inventory that is still on hand and has not been sold
to customers is called
Student Answer: cost of goods sold, an expense that appears on the balance sheet.
inventory, a current asset that appears on the income statement.
inventory, a current asset that appears on the balance sheet.
purchases, an expense that appears on the income statement.
Instructor
Explanation:
See Chapter 6.
Points Received: 0 of 3
Comments:
Question 3.Question :
(TCO 4) A small _____ would most likely use a perpetual inventory
system.
Student Answer: automobile dealership
fabric store
restaurant
flower shop
Instructor
Explanation:
See Chapter 6.
Points Received: 3 of 3
Comments:
Question 4.Question :
(TCO 4) All of the following costs would be included in inventory except
for
Student Answer: freight-in.
advertising.
taxes paid on the purchase price.
insurance while in transit.
Instructor
Explanation:
See Chapter 6.
Points Received: 3 of 3
Comments:
Question 5.Question :
(TCO 4) If the cost to purchase a unit of inventory does not change,
ending inventory
Student Answer: will be the highest under FIFO.
will be the highest under LIFO.
cannot be computed using the average-cost method.
will be the same under LIFO and FIFO.
Instructor
Explanation:
See Chapter 6.
Points Received: 3 of 3
Comments:
Question 6.Question :
(TCO 4) When inventory prices are increasing, the FIFO costing method
will generally yield a cost of goods sold that is
Student Answer: higher than cost of goods sold under the LIFO method.
lower than cost of goods sold under the LIFO method.
equal to the gross profit under the LIFO method.
equal to cost of goods sold under the LIFO method.
Instructor
Explanation:
See Chapter 6.
Points Received: 0 of 3
Comments:
Question 7.Question :
(TCO 4) When inventory prices are falling, the LIFO costing method will
generally result in
Student Answer: a lower gross profit than under FIFO.
a higher gross profit than under FIFO.
a lower inventory value than under FIFO.
the same inventory value as FIFO.
Instructor
Explanation:
See Chapter 6.
Points Received: 0 of 3
Comments:
Question 8.Question :
(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.
Student Answer: consistency
historical cost
disclosure
conservatism
Instructor
Explanation:
See Chapter 6.
Points Received: 0 of 3 [Show Less]