all the questions are in order

If a company is using the lower-of-cost-or-market rule and a write-down is required, how will that write-down affect the elements of the company's financial statements? Multiple Choice Net Income will increase Gross margin will decrease Total assets will decrease Gross margin and total assets will both decrease How does an error that results in an overstatement of ending inventory affect the elements of the company's financial statements in the current year? Exp. = Net Inc. Assets + Liab. + Equity NA + NA NA NA Rev. NA NA NA NA Cash Flow NA NA A. B. C. D. + + + NA 40A NA + + + +0A Multiple Choice O Option A Options Option C Option D Why are the inventory and cost of goods sold accounts attractive targets for managerial froud? Multiple Choice There are few if any procedures that can check for fraud in these accounts There are no adequate methods of record keeping for inventory These accounts are more significant than most other accounts. Cost of goods sold and Inventory accounts are not attractive targets of fraud, Nelson Corporation is required to record an inventory write-down of $2,500 as a result of using the lower-of-cost-or-market rule. Which of the following shows how this entry would affect the financial statements? Assets Lia. Stmt of Cash Flows NA A. (2,500) B. (2,500) C. NA D. (2,500) Stk. Rev. Equity (2,500) NA NA NA 2,500 2,500 (2,500) NA NA (2,500) (2,500) NA NA Exp. - Net Inc. 2,500 (2,500) NA NA NA 2,500 2,500 (2,500) NA (2,500) Multiple Choice Option A Option B O Option O Option Zinke Company understated its ending Inventory at the end of Year 1. Which of the following correctly states the effect of the error on the amounts shown on the Year 1 financial statements? Multiple Choice O Overstatement of total assets and cost of goods sold. Overstatement of cost of goods sold and retained earnings Understatement of liabilities and retained earnings Understatement of total assets and gross margin If prices are rising, which inventory cost flow method will produce the lowest amount of cost of goods sold? Multiple Choice LIFO o FIFO Weighted average LIFO, FIFO, and the weighted average Inventory cost flow methods will all produce equal amounts of cost of goods sold Anton Co uses the perpetual inventory system and FIFO cost flow method. During the year, Anton purchased 400 units of inventory that cost $12.00 each and then purchased an additional 600 units of inventory that cost $16.00 each. If Anton sells 700 units of inventory, what is the amount of cost of goods sold? Multiple Choice $11,200 $10.400 $8.400 $9600 Barker Company paid cash to purchase two identical inventory items. The first purchase cost $18.00 cash and the second cost $20.00 cash. Barker sold one inventory item for $30.00 cash. Based on this information alone, without considering the effect of income taxes, which of the following statements is correct? Multiple Choice Cash flow from operating activities is $1100 assuming the weighted average Inventory cost flow method is used Cash flow from operating activities is $12.00 assuming the FIFO inventory cost flow method is used, Cash flow from operating activities is $10.00 assuming the LIFO inventory cost flow method is used. The amount of cash flow from operating activities is not affected by the inventory cost flow method chosen Which inventory costing method will produce an amount for cost of goods sold that is closest to current market value? Multiple Choice Weighted average O Specific identification O LIFO FIFO On December 31, Year 1, Owings Corporation overstates the ending Inventory by $5,000. How will this affect the amount of retained earnings shown on the balance sheet at December 31, Year 2? Multiple Choice Retained Earnings will be correctly stated Rutained Earnings will be understated by $5.000. Retained Earnings will be overstated by $5,000 Cannot be determined with the above information Hoover Company purchased two identical inventory items. The item purchased first cost $33.00. The item purchased second cost $35.00 Then Hoover sold one of the inventory items for $62.00. Based on this information, which of the following statements is true? Multiple Choice The ending inventory s $35.00 Hoover tes the LIFO Cost flow method, The gross margin is $28.00 i Hoover uses the weighted average cost flow method. The cost of goods sold is $35.00 Hoovet uses the PFO cost flow method The cost of goods sold is $3300 F Hoover uses the LIFO cost flow method Beginning inventory @ May 1 First purchase May 7 Second purchase May 17 Third purchase 9 May 23 Sales May 31 100 units $4.00 380 units 14.40 500 units $4.60 100 units $4.00 900 units 37.80 TB MC Qu. 05-42 What is the amount of ending inventory assuming... What is the amount of ending inventory assuming the FIFO cost flow method? Multiple Choice $480 O $440 $400 O $940 O 12 13 14 15 of 25 Next > Beginning inventory May 1 First purchase May ? Second purchase May 17 Third purchasek May 23 Sales May31 100 units 34.00 300 units E34.40 500 units $4.60 100 units 54.80 900 units $7.80 TB MC Qu. 05-40 If the company uses the weighted-average inventory cost flow... If the company uses the weighted average inventory cost flow method, what is the average cost per unit (rounded) for May? Multiple Choice $4.45 $4.50 $5.12 $6.34 Beginning inventory May 1 First purchase May 7 Second purchase May 17 Third purchased May 23 Sales May 21 100 units $4.00 300 units @ $4.40 500 units 154.60 100 units 54.80 900 units @ 57.80 TB MC Qu. 05-41 What is the amount of cost of goods sold... What is the amount of cost of goods sold assuming the LIFO cost flow method? Multiple Choice $4,100 $4.320 $2,360 $3,600 Beginning inventory @ May 1 First purchase @ May 7 Second purchase May 17 Third purchase @ May 23 Sales May 31 100 units $4.00 300 units $4.40 500 units @ 54.60 108 units @ $4.88 9e8 units @ $7.80 TB MC Qu. 05-44 What is the amount of gross margin assuming... What is the amount of gross margin assuming the FIFO cost flow method? Multiple Choice $2.920 $3,420 $3.000 $4,020 Beginning inventory May 1 First purchase May 7 Second purchase May 17 Third purchase May 23 Sales May 31 1,30 units 54.20 1,400 units $4.40 1,600 units 34.50 1,200 units @ $4.60 4,200 units 56.10 TB MC Qu. 05-40 if the company uses the weighted average inventory cost flow... if the company uses the wolghted average Inventory cost flow method, what is the average cost per unit frounded) for May? Multiple Choice $443 $4.37 $4.50 C $6.10 Beginning inventory @ May 1 First purchase @ May 7 Second purchase @ May 17 Third purchase @ May 23 Sales a May 31 1,300 units @ $4.20 1,400 units @ $4.40 1,600 units @ $4.50 1,200 units @ $4.60 4,200 units @ $6.10 TB MC Qu. 05-41 What is the amount of cost of goods sold... What is the amount of cost of goods sold assuming the LIFO cost flow method? Multiple Choice $19,320 $18,880 $18,480 $17.640 Beginning inventory @ May 1 First purchase @ May 7 Second purchase @ May 17 Third purchase @ May 23 Sales @ May 31 1,300 units @ $4.20 1,400 units @ $4.40 1,600 units @ $4.50 1,200 units @ $4.60 4,200 units @ $6.10 TB MC Qu. 05-42 What is the amount of ending inventory assuming... What is the amount of ending Inventory assuming the FIFO cost flow method? Multiple Choice O $5.720 $5,970 $5,460 $4,720 Beginning inventory May 1 First purchase o May Second purchase May 12 Third purchase May 23 Sates Hay 1 1,300 units $4.20 1,400 units254.40 1,600 units $4.50 1200 units 34.60 4,200 units 56.10 TB MC Qu. 05-43 What is the amount of gross margin assuming.. What is the amount of gross margin assuming the weighted average Inventory cost flow method? (Round your Intermediate calculations to two decimal places.) Multiple Choice $7,014 $19,320 $6,300 Beginning inventory May 1 First purchase May 7 Second purchase May 17 Third purchase May 23 Sales May 31 1,380 units @ $4.20 1,400 units 54.10 1,60 units $4.50 1,200 units 34.60 4,200 units 56.10 Te MC Qu. 05-44 What is the amount of gross margin assuming... What is the amount of gross margin assuming the FIFO cost flow method? Multiple Choice $6.740 $7.980 $18.606 Glasgow Enterprises started the period with 70 units in beginning inventory that cost $2.30 each. During the period, the company purchased inventory items as follows: Purchase 1 2 3 No. of Items 240 170 50 Cost $2.80 $2.90 $3.30 Glasgow sold 260 units after purchase 3 for $9.00 each TB MC Qu. 05-45 What is Glasgow's cost of goods sold... What is Glasgow's cost of goods sold under FIFO? Multiple Choice $693 $598 $858 Glasgow Enterprises started the period with 70 units in beginning inventory that cost $2.30 each. During the period, the company purchased inventory items as follows: Purchase 1 2 3 No. of Items 240 170 50 Cost $2.80 $2.99 $3.30 Glasgow sold 260 units after purchase 3 for $9.00 each. TB MC Qu. 05-46 What is Glasgow's ending inventory under... What is Glasgow's ending inventory under LIFO? Multiple Choice $891 $783 $721 Glasgow Enterprises started the period with 70 units in beginning inventory that cost $2.30 each. During the period, the company purchased inventory items as follows: Purchase 1 2 3 No. of Items 240 170 50 Cost $2.80 $2.90 $3.30 Glasgow sold 260 units after purchase 3 for $9.00 each. TB MC Qu. 05-47 What is Glasgow's ending inventory under... What is Glasgow's ending inventory under weighted-average (rounded)? Multiple Choice $759 $766 $731 Jan 1 Jan 12 Jan 18 Jan 21 Jan 25 Jan 31 Beginning inventory Purchase Sales Purchase Purchase Sales 700 units @ $3.10 800 units @ $2.90 900 units @ $4.60 700 units @ $3.20 500 units @ $3.00 850 units @ $4.60 TB MC Qu. 05-57 Assuming Chase uses a FIFO cost flow method... Assuming Chase uses a FIFO cost flow method, what is the ending inventory on January 31? Multiple Choice $1,705 $1,650 $2,940 $2,540