1 With regard to inventory, which of the following is true A For accounting purposes, the actual (physical) unit sold is not important, but the cost assigned to the unit sold is important B Manufacturers often report up to three inventory accounts on the balance sheet C Cost flows assumptions are alternatives of allocating cost of goods available for sale between inventory and cost of goods sold D LIFO is not an acceptable option under IFRS E All of the above 2 Research shows that the largest category of restated financial statements in the U S relates to A Liabilities B Shareholders' Equity C Assets D Expenses E Revenues 3 Using either the FIFO or LIFO cost flow assumption will result in the same cost of goods sold when A the number of units in beginning inventory and ending inventory are the same B two consecutive years are combined C the selling price of the goods does not change D lower of cost or market is applied E None of the above 4 Which of the following is are false regarding inventory A Inventory refers to goods and other items that a firm owns and holds for sale or for further processing as part of its operations B Inventory is called stock in the U S C When the firm sells inventory, the carrying amount (cost) of that inventory becomes an expense D Inventories are a major asset for merchandising and manufacturing firms E 5 None of the aboveWhich of the following is true A Firms do not necessarily recognize revenues when they receive cash B Firms do not necessarily recognize expenses when they disburse cash C Net income will not necessarily equal cash flow from operations each period D A profitable firm will likely borrow funds in order to remain in business, but eventually operations must generate cash to repay the borrowing E All of the above are true

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1. With regard to inventory, which of the following is true? A. For accounting purposes, the actual (physical) unit sold is not important, but the

1. With regard to inventory, which of the following is true? A. For accounting purposes, the actual (physical) unit sold is not important, but the cost assigned to the unit sold is important. B. Manufacturers often report up to three inventory accounts on the balance sheet. C. Cost flows assumptions are alternatives of allocating cost of goods available for sale between inventory and cost of goods sold. D. LIFO is not an acceptable option under IFRS. E. All of the above

2. Research shows that the largest category of restated financial statements in the U.S. relates to

	A.	Liabilities
	B.	Shareholders' Equity
	C.	Assets
	D.	Expenses
	E.	Revenues

3. Using either the FIFO or LIFO cost flow assumption will result in the same cost of goods sold when

	A.	the number of units in beginning inventory and ending inventory are the same
	B.	two consecutive years are combined
	C.	the selling price of the goods does not change
	D.	lower-of-cost-or-market is applied
	E.	None of the above

4. Which of the following is/are false regarding inventory?

Inventory refers to goods and other items that a firm owns and holds for sale or for further processing as part of its operations.

Inventory is called "stock" in the U.S.

When the firm sells inventory, the carrying amount (cost) of that inventory becomes an expense.

Inventories are a major asset for merchandising and manufacturing firms.

5. None of the aboveWhich of the following is true?

	A.	Firms do not necessarily recognize revenues when they receive cash
	B.	Firms do not necessarily recognize expenses when they disburse cash
	C.	Net income will not necessarily equal cash flow from operations each period
	D.	A profitable firm will likely borrow funds in order to remain in business, but eventually operations must generate cash to repay the borrowing.
	E.	All of the above are true