ACC 557 Week 5 Quiz
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This 9 page Study Guide was uploaded by an elite notetaker on Wednesday November 11, 2015. The Study Guide belongs to fin571 at Kaplan University taught by in Fall 2015. Since its upload, it has received 23 views.
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Date Created: 11/11/15
QUIZ.CH5.6 1- Multiple Choice Question 54 Cost of goods sold is determined only at the end of the accounting period in neither a perpetual nor a periodic inventory system. a perpetual inventory system. a periodic inventory system. both a perpetual and a periodic inventory system 2- Multiple Choice Question 92 A sales invoice is a source document that provides evidence of incurred operating expenses. provides evidence of credit sales. serves only as a customer receipt. provides support for goods purchased for resale. 3- Multiple Choice Question 149 Financial information is presented below: Operating Expenses $ 45,000 Sales Returns and Allowances 9,000 Sales Discounts 6,000 Sales Revenue 160,000 Cost of Goods Sold 87,000 The gross profit rate would be .503. .363. .400. .456. 4- Multiple Choice Question 96 The Sales Returns and Allowances account is classified as a(n) contra revenue account. contra asset account. expense account. asset account. 5- Multiple Choice Question 179 On October 4, 2013, JT Corporation had credit sales transactions of $3,200 from merchandise having cost $1,900. The entries to record the day's credit transactions include a credit of $1,900 to Cost of Goods Sold. credit of $3,200 to Sales Revenue. debit of $1,900 to Inventory. debit of $3,200 to Inventory. 6- IFRS Multiple Choice Question 257 Comprehensive income under IFRS excludes unrealized gains and losses included in net income, in contrast to GAAP. includes unrealized gains and losses included in net income, similar to GAAP. excludes unrealized gains and losses included in net income, similar to GAAP. includes unrealized gains and losses included in net income, in contrast to GAAP 7- Multiple Choice Question 134 If a company has net sales of $700,000 and cost of goods sold of $490,000, the gross profit percentage is 30%. 70%. 100%. 15%. 8- Multiple Choice Question 118 The consistent application of an inventory costing method is essential for accuracy. efficiency. comparability. conservatism. 9- Multiple Choice Question 168 The inventory turnover ratio is computed by dividing cost of goods sold by beginning inventory. ending inventory. average inventory. 365 days. 10- Multiple Choice Question 126 Switzer, Inc. has 5 computers which have been part of the inventory for over two years. Each computer cost $600 and originally retailed for $900. At the statement date, each computer has a current replacement cost of $400. How much loss should Switzer, Inc., record for the year? $2,000. $2,500. $1,000. $1,500. 11- Multiple Choice Question 72 Which one of the following inventory methods is often impractical to use? LIFO FIFO Specific identification Average cost 12 - Multiple Choice Question 132 Overstating ending inventory will overstate all of the following except net income. owner's equity. assets. cost of goods sold. 13- IFRS Multiple Choice Question 232 Under IFRS, companies can choose which inventory system? LIFO FIFO Yes No Yes Yes No Yes No No 14- Multiple Choice Question 123 The lower-of-cost-or-market (LCM) basis may be used with all of the following methods except FIFO. LIFO. The LCM basis may be used with all of these. average cost. 15- Multiple Choice Question 161 Inventory items on an assembly line in various stages of production are classified as Raw materials. Merchandise inventory. Finished goods. Work in process.
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