Inventory-3

Which of the following is a type of Inventory ?
1. All of the listed answers are correct
2. Merchandise Inventory
3. Work - In - Process
4. Raw Materials
Which of the following records is used to keep up with merchandise buying and selling transactions
1. All of the listed answers are correct
2. Sales Journal
3. Purchases Journal
4. Inventory Sub-ledger
The method of accounting for inventory that requires a physical count in order to determine the cost of goods sold is-
1. Periodic Method
2. Perpetual Method
3. LIFO Costing
4. Average Costing
What Costing Method assumes that the first goods purchased are the first goods sold ?
1. FIFO Costing Method
2. LIFO Costing Method
3. Average Costing Method
4. Specific Identification Method
A formula used to calculate the Cost Of Goods Sold is -
1. Cost of Goods Sold = Begiinning Inventory + Purchases - Ending Inventory
2. Cost Of Goods Sold = Beginning Inventory - Purchases + Ending Inventory
3. Cost of Goods Sold = Purchases - Beginning Inventory + Ending Inventory
4. None of the listed answers is correct
What Journal is normally used to record inventory adjusting entries ?
1. General Journal
2. Inventory Journal
3. Purchases Journal
4. Sales Journal
What Inventory Method requires maintaining detail records pertaining to each and every purchase and sale ?
1. Perpetual Inventory Method
2. Periodic Inventory Method
3. LIFO Costing Method
4. FIFO Costing Method
Which of the following is not an advantage of using the Perpetual Inventory Method ?
1. Less record keeping required
2. Better overall control
3. No estimates needed to prepare financial statements
4. All of the listed answers are correct
What Inventory Method records the resulting decrease in Inventory and the Cost Of Goods Sold at the time of the sale ?
1. Perpetual Inventory Method
2. Periodic Inventory Method
3. All the listed answers are correct
4. None of the listed answers is correct
Assigning Cost to a product requires -
1. All of the listed answers are correct
2. Selecting the Periodic or Perpetual Method of accounting for inventories
3. Determining the total product costs and units to account for
4. Assigning costs to Cost Of Goods Sold and Ending Inventory using a Cost Method
Theorectically, the best method for matching revenues and costs associated with sales is accomplished using what Inventory Costing Method.
1. Specific Identification Inventory Costing Method
2. Average Inventory Costing Method
3. FIFO Inventory Costing Method
4. LIFO Inventory Costing Method
The Inventory Costing Method that assigns the latest or most recent costs to Cost Of Goods Sold is the
1. LIFO Costing Method
2. FIFO Costing Method
3. Average Costing Method
4. All of the listed answers are correct
The Inventory Costing Method used with both the Perpetual and Periodic Methods that produces the same cost for Cost of Goods Sold & Ending Inventory is -
1. FIFO Costing Method
2. Average Costing Method
3. LIFO Costing Method
4. None of the listed answers is correct
When might the Gross Profit Method of estimating inventories be used ?
1. All of the listed answers are correct
2. A Physical Count is not feasable
3. To check the reasonableness of the ending inventory amount
4. To prepare Financial Statements when the Periodic Inventory Method is used
The IRS does not allow the Lower Of Cost Or Market Rule when used with what Inventory Costing Method ?
1. LIFO
2. FIFO
3. Average Cost
4. All of the listed answers are correct
During a period of rising prices, what Inventory Costing Method would minimize Income Taxes ?
1. LIFO Costing Method
2. FIFO Costing Method
3. Average Costing Method
4. None of the listed answers are correct

Inventory-3

Quiz