216. Accounting for inventories is important because inventories affect the ______________ section of the balance sheet and the______________ section on the income statement.
admin
216. Accounting for inventories is important because
inventories affect the ______________ section of the balance sheet and the
______________ section on the income statement.
Ans:
N/A, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC: None, IMA:
Reporting
217. In a manufacturing company, goods that are
ready to be sold to customers are referred to as ________________, whereas in a
merchandising company they are generally referred to as _______________.
Ans:
N/A, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC: None, IMA:
Reporting
218. The cost of goods purchased during a period
plus the beginning inventory is the amount of goods ________________ during the
period.
Ans:
N/A, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: None, IMA: FSA
219. Inventoriable costs are allocated to
______________ and cost of goods ____________.
Ans:
N/A, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC: None, IMA:
Reporting
220. It is generally recognized that a major
objective of accounting for inventory is the proper determination of
______________.
Ans:
N/A, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: None, IMA:
Business Economic
221. The ______________ method tracks the actual
physical flow of each unit of inventory available for sale; however, management
may be able to manipulate ______________ by using this method.
Ans:
N/A, LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: None, IMA:
Business Economic
222. If the unit cost of inventory has
continuously increased, the ______________, first-out inventory valuation
method will result in a higher valued ending inventory than if the ______________,
first-out method had been used.
Ans:
N/A, LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: None, IMA:
Business Economic
223. The lower-of-cost-or-market basis of accounting
for inventories should be applied when the ______________ cost of the goods is
lower than its cost.
Ans:
N/A, LO: 4, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: None, IMA:
Business Economic
224. ______________ is calculated as cost of
goods sold divided by average inventory.
Ans:
N/A, LO: 6, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: None, IMA:
Business Economic
a225. Two
widely used methods of estimating inventories are the ______________ method and
the _____________ method.
Ans:
N/A, LO: 8, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: None, IMA:
Business Economic 216. Accounting for inventories is important because
inventories affect the ______________ section of the balance sheet and the
______________ section on the income statement.Ans:
N/A, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC: None, IMA:
Reporting 217. In a manufacturing company, goods that are
ready to be sold to customers are referred to as ________________, whereas in a
merchandising company they are generally referred to as _______________.Ans:
N/A, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC: None, IMA:
Reporting 218. The cost of goods purchased during a period
plus the beginning inventory is the amount of goods ________________ during the
period.Ans:
N/A, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: None, IMA: FSA 219. Inventoriable costs are allocated to
______________ and cost of goods ____________.Ans:
N/A, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC: None, IMA:
Reporting 220. It is generally recognized that a major
objective of accounting for inventory is the proper determination of
______________.Ans:
N/A, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: None, IMA:
Business Economic 221. The ______________ method tracks the actual
physical flow of each unit of inventory available for sale; however, management
may be able to manipulate ______________ by using this method.Ans:
N/A, LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: None, IMA:
Business Economic 222. If the unit cost of inventory has
continuously increased, the ______________, first-out inventory valuation
method will result in a higher valued ending inventory than if the ______________,
first-out method had been used.Ans:
N/A, LO: 3, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: None, IMA:
Business Economic 223. The lower-of-cost-or-market basis of accounting
for inventories should be applied when the ______________ cost of the goods is
lower than its cost.Ans:
N/A, LO: 4, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: None, IMA:
Business Economic 224. ______________ is calculated as cost of
goods sold divided by average inventory.Ans:
N/A, LO: 6, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: None, IMA:
Business Economic a225. Two
widely used methods of estimating inventories are the ______________ method and
the _____________ method.Ans:
N/A, LO: 8, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB:
Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: None, IMA:
Business Economic
