Acc 557 week 5 ch 5 & 6 quiz
ACC 557 Week 5 Ch 5 & 6 Quiz
Week 5 Quiz, Ch 5 & 6
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Multiple Choice Question 178 |
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In a perpetual inventory system, a return of defective merchandise by a purchaser is recorded by crediting
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Multiple Choice Question 127 |
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Gross profit does not appear
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to be relevant in analyzing the operation of a merchandiser. |
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on a multiple-step income statement. |
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on a single-step income statement. |
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on the income statement if the periodic inventory system is used because it cannot be calculated. |
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IFRS Multiple Choice Question 250 |
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Under GAAP, companies generally classify income statement items by
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Multiple Choice Question 154 |
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During August, 2013, Baxter’s Supply Store generated revenues of $30,000. The company’s expenses were as follows: cost of goods sold of $18,000 and operating expenses of $2,000. The company also had rent revenue of $500 and a gain on the sale of a delivery truck of $1,000.
Baxter’s operating income for the month of August, 2013 is
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Multiple Choice Question 177 |
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Kate Company purchased inventory from Phoebe Company. The shipping costs were $500 and the terms of the shipment were FOB shipping point. Kate would have the following entry regarding the shipping charges:
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There is no entry on Kate’s books for this transaction. |
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IFRS Multiple Choice Question 254 |
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For the income statement, IFRS requires
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single-step approach or multiple-step approach. |
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no specific income statement approach. |
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multiple-step approach. |
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Multiple Choice Question 99 |
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A credit sale of $2,700 is made on July 15, terms 2/10, n/30, on which a return of $150 is granted on July 18. What amount is received as payment in full on July 24?
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Multiple Choice Question 105 |
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Romanoff Industries had the following inventory transactions occur during 2013:
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Units |
Cost/unit |
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2/1/13 |
Purchase |
18 |
$45 |
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3/14/13 |
Purchase |
31 |
$47 |
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5/1/13 |
Purchase |
22 |
$49 |
The company sold 50 units at $70 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company’s after-tax income using FIFO? (rounded to whole dollars)
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Multiple Choice Question 97 |
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Netta Shutters has the following inventory information.
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Nov. 1 |
Inventory |
15 units @ $8.00 |
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8 |
Purchase |
60 units @ $8.30 |
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17 |
Purchase |
30 units @ $8.40 |
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25 |
Purchase |
45 units @ $8.80 |
A physical count of merchandise inventory on November 30 reveals that there are 45 units on hand. Assume a periodic inventory system is used. Ending inventory under FIFO is
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Multiple Choice Question 76 |
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Which of the following statements is correct with respect to inventories?
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The FIFO method assumes that the costs of the earliest goods acquired are the last to be sold. |
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It is generally good business management to sell the most recently acquired goods first. |
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Under FIFO, the ending inventory is based on the latest units purchased. |
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FIFO seldom coincides with the actual physical flow of inventory. |
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Multiple Choice Question 133 |
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On July 31, Tractor Supplies sold merchandise to J. Robson on account. The sales price was $8,400, and the cost of goods sold was $6,300. The sales revenue was recorded immediately, but the entry recording the cost of goods sold was dated August 2. As a result, net income for July was
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not affected, but the net income for August is understated. |
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IFRS Multiple Choice Question 229 |
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The major IFRS requirements related to accounting for and reporting inventories are
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the same as GAAP with a couple of exceptions. |
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completely different fom GAAP. |
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not comparable to GAAP. |
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Multiple Choice Question 81 |
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Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2013 are as follows:
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Units |
Per unit price |
Total |
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Balance, 1/1/13 |
200 |
$5.00 |
$1,000 |
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Purchase, 1/15/13 |
100 |
5.30 |
530 |
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Purchase, 1/28/13 |
100 |
5.50 |
550 |
An end of the month (1/31/13) inventory showed that 140 units were on hand. How many units did the company sell during January, 2013?
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Multiple Choice Question 158 |
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Over the last few years, Mohawk Industries has operated with a gross profit rate of 35%. On January 1, 2012, the company had inventory on hand with a cost of $750,000. Purchases of merchandise during January amounted to $215,000, and sales for the month were $480,000. Using the gross profit method, what is the estimated inventory at January 31
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Multiple Choice Question 84 |
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Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2013 are as follows:
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Units |
Per unit price |
Total |
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Balance, 1/1/13 |
200 |
$5.00 |
$1,000 |
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Purchase, 1/15/13 |
100 |
5.30 |
530 |
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Purchase, 1/28/13 |
100 |
5.50 |
550 |
An end of the month (1/31/13) inventory showed that 140 units were on hand. If the company uses FIFO and sells the units for $10 each, what is the gross profit for the month?
