Under the _____ inventory method, accounting records maintain a continuously updated inventory value.
| a. | periodic | |
| b. | retail | |
| c. | physical | |
| d. | perpetual |
Answer = d
Addison, Inc. uses a perpetual inventory system. The following is information about one inventory item for the month of September:
| Sep. 1 | Inventory | 20 units at $20 |
| 4 | Sold | 10 units |
| 10 | Purchased | 30 units at $25 |
| 17 | Sold | 20 units |
| 30 | Purchased | 10 units at $30 |
If Addison uses LIFO, the cost of the ending merchandise inventory on September 30 is
| a. | $800 | |
| b. | $750 | |
| c. | $700 | |
| d. | $650 |
Answer = b
Which of the following is not an example for safeguarding inventory?
| a. | Physical devices such as two-way mirrors, cameras, and alarms. | |
| b. | Storing inventory in restricted areas. | |
| c. | Returning inventory that is defective or broken. | |
| d. | Matching receiving documents, purchase orders, and vendor’s invoice. |
Answer = c
Determine the total value of the merchandise using net realizable value.
| Item | Quantity | Selling Price | Commission | |||
| Doll | 10 | $7 | $2 | |||
| Horse | 5 | 9 | 3 | |||
| a. | $35 | |||||
| b. | $80 | |||||
| c. | $25 | |||||
| d. | $115 | |||||
Answer = b
The method of estimating inventory that uses records of the selling prices of the merchandise is called
| a. | gross profit method | |
| b. | average cost method | |
| c. | retail method | |
| d. | inventory turnover method |
Answer = c
No comments:
Post a Comment