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Chapters 1-4 The Accounting Cycle
Chapters 5-8 Current Assets
Chapters 9-11 Long-Term Assets
Chapters 12-14 Liabilities/Equities
Chapters 15-16 Using Information
- Chapter 15: Financial Reporting and Concepts
- Chapter 16: Financial Analysis and the Statement of Cash Flows
Chapters 17-20 Managerial/Cost
Chapters 21-24 Budgeting/Decisions

Chapter 8 - Goals Achievement

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Chapter 8 – Goals Achievement

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Goals Achievement
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Question 1 of 14

1. Question
Goods in transit should never be included in the buyer’s inventory.
- true
- false
Correct

Incorrect
Question 2 of 14

2. Question
Goods on consignment should be included in the accounts of the:
- consignee
- consignor
Correct

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Question 3 of 14

3. Question
Under which inventory cost-flow assumption would the most recent cost be assigned to the Inventory account on the balance sheet?
- LIFO
- FIFO
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Question 4 of 14

4. Question
Under the weighted-average inventory method, the average unit cost of inventory is determined by dividing the sum of the individual purchase prices by the number of purchases which occurred during the year.
- right
- wrong
Correct

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Question 5 of 14

5. Question
The specific identification method would be used for inventory which involves many similar homogeneous items.
- true
- false
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Question 6 of 14

6. Question
During a period of rising prices, which inventory method would tend to minimize tax liability?
- FIFO
- LIFO
Correct

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Question 7 of 14

7. Question
During a time of rising prices, the LIFO technique causes inventory on the balance sheet to bear what relationship to its fair value?
- greater than
- less than
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Question 8 of 14

8. Question
In a perpetual inventory system, which account is not utilized?
- Purchases
- Cost of Goods Sold
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Question 9 of 14

9. Question
Which inventory method produces the same results under both the perpetual and periodic inventory systems?
- FIFO
- LIFO
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Question 10 of 14

10. Question
In determining inventory’s lower of cost or net realizable value, NRV is defined as:
- sales price less selling costs
- replacement cost
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Question 11 of 14

11. Question
The lower of cost or net realizable value rule can be applied item-by-item or to the aggregate inventory.
- true
- false
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Question 12 of 14

12. Question
Recoveries of value for inventory previously reduced by lower of cost or net realizable value rule adjustments should be recognized.
- yes
- no
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Question 13 of 14

13. Question
Under the gross profit method, ending inventory is determined by multiplying net purchases by the estimated gross profit percentage.
- true
- false
Correct

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Question 14 of 14

14. Question
Under the retail inventory method the estimated ending inventory can be determined by multiplying the cost-to-retail percentage times the:
- retail value of goods available for sale
- estimated ending inventory at retail
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Chapters 1-4
Chapters 5-8
Chapters 9-11
Chapters 12-14
Chapters 15-16
- Chapter 15: Financial Reporting and Concepts
- Chapter 16: Financial Analysis and the Statement of Cash Flows
Chapters 17-20
Chapters 21-24
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