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- 1. Multiple Choice
First In, First Out is
an assumption that the inventory purchased first is sold first
the reality that the inventory purchased first is sold first
an assumption that the inventory purchased last will be sold first
a dance move
- 2. Multiple Choice
Cost of sales
Is the revenue generated from selling inventory
The value of inventory recorded in the inventory cards
Net profit minus Expenses
Expenses incurred when inventory is sold
- 3. Multiple Choice
Gross Profit is
Revenue Less Expenses
The profit earned purely from the purchase and sale of inventory
The same as Net Profit
The same as Sales Revenue
- 4. Multiple Choice
Stock losses will result in ...
An increase in Revenue
An increase in Expenses
An increase in Assets
An decrease in Liabilities
- 5. Multiple Choice
What is the journal entry for purchasing inventory?
Dr Trade payables Cr Inventory
Dr Trade receivables Cr Sales revenue
Dr Cost of sales Cr Inventory
Dr Inventory Cr Trade payables
- 6. Multiple Choice
What method is used to calculate the Cost of Sales
Prudence Method
FIFO Method
Lower of cost or NRV
No specific method
- 7. Multiple Choice
Given the situation where the cost was RM1,000 and the NRV was RM990 and the cost value already included in the stock valuation.
What is the best solution for the given situation above?
Add cost by RM1,000 in the statement of inventory valuation.
Reduce the NRV by RM10 (RM1,000 - RM990) in the statement of inventory valuation.
Add NRV by RM990 in the statement of inventory valuation.
- 8. Multiple Choice
Given situation where the cost was RM800 and NRV was RM880 and the cost value already included in the stock valuation.
What is the best solution for the given situation above?
Add cost by RM800 in the statement of inventory valuation.
Add NRV by RM880 in the statement of inventory valuation.
No adjustment needed
- 9. Multiple Choice
How many situation you learn about cost vs NRV in this topic?
1
2
3
- 10. Multiple Choice
Given scenario where cost was RM450 and NRV was RM400. Neither cost nor NRV was included in the stock valuation.
What is the best solution for the given scenario above?
Add NRV of RM400 in the statement of inventory valuation.
No adjustment needed.
Add cost of RM450 in the statement of inventory valuation.
Reduce RM50 (RM450-RM400) in the statement of inventory valuation.
- 11. Multiple Choice
What are the basis for inventory valuation?
Cost only.
NRV only.
Cost or NRV whichever is the lowest.
- 12. Multiple Choice
To differentiate the Perpetual and Periodic Inventory System, what is the entry made for doing the transaction under purchasing a product.
UNDER PERIODIC METHOD- Debit Purchases Account
UNDER PERPETUAL METHOD- Debit Inventory Control Account
UNDER PERPETUAL METHOD- Debit Inventory Control Account
UNDER PERIODIC METHOD- Credit Sales Account
UNDER PERPETUAL METHOD- Credit Sales Account
UNDER PERIODIC METHOD- Cost of Goods Sold and Reduce Inventory Value
UNDER PERPETUAL METHOD- Credit Inventory Control
UNDER PERIODIC METHOD- Credit Purchases Account
UNDER PERPETUAL METHOD- No Adjusting Entries Needed Cost Of Goods and Reduce Inventory Value
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