ACCTG 211 Inventory Valuation
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  • Question 1
    30 seconds
    Q. Which of the following assets must be reported at the  lower-of-cost-or-market value?
    answer choices
    AR
    Merchandise Inventory
    Prepaid Insurance
    Notes Receivable
  • Question 2
    30 seconds
    Q. Misty, Inc. had  24,000 units of ending inventory that were recorded at the cost of  $8.00 per unit using the FIFO method. The current replacement cost is  $4.50 per unit. Which of the following amounts would be reported as Ending Merchandise Inventory on the balance sheet using the  lower-of-cost-or-market rule?
    answer choices
    $192,000

    $216,000

    $108,000

    $300,000
  • Question 3
    30 seconds
    Q. When a company uses the perpetual inventory​ method, which of the following would be the entry to adjust inventory to​ lower-of-cost-or-market?
    answer choices
    debit Merchandise Inventory and credit Cost of Goods Sold
    debit Loss on Inventory and credit Merchandise Inventory
    debit Merchandise Inventory and credit Inventory Adjustment
    debit Cost of Goods Sold and credit Merchandise Inventory
  • Question 4
    30 seconds
    Q. Which of the following is affected as a result of an error in performing the physical count of inventory at the end of the accounting​ period?
    answer choices
    sales revenue
    operating expenses
    net income
    net cost of purchases
  • Question 5
    30 seconds
    Q. Under the periodic inventory​ system, which of the following amounts will always stay the same regardless of the inventory valuation method​ used?
    answer choices
    purchases
    gross profit
    COGS
    ending merchandise inventory
  • Question 6
    30 seconds
    Q. A company that uses the periodic inventory system provided the following  information:
    1/ Beginning inventory  $5,000
    2. Purchases  $130,000
    3. Purchase discounts  $2,000
    4. Purchase returns and allowances  $600
    At the end of the  period, the company does an inventory count and finds  $16,000 worth of inventory on hand. What is the amount of cost of goods  sold?
    answer choices

    $132,400

    $116,400

    $148,400

    $127,400
  • Question 7
    30 seconds
    Q. Which of the following amounts could differ if a​ company, using the LIFO inventory costing​ method, shifts from a periodic inventory system to a perpetual inventory​ system?
    answer choices
    ending merchandise inventory
    purchases
    sales revenue
    purchase returns
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