BOROUGH OF MANHATTAN COMMUNITY COLLEGE PRINCIPLES OF ACCOUNTING Take Home Assignment-Chapters 6, 7,8 & 9 ACC 122-1000 (Prof. F. Asante) Due Date - December 14, 2018 Name: 1. Costs included in the Merchandise Inventory account can include: A) Invoice price minus any discount. B) Transportation-in. C) Storage. D) Insurance. E) All of the above. 2. Physical counts of inventory: A) Are not necessary under the perpetual system. B) Are necessary to measure and adjust for inventory shrinkage. C) Must be taken at least once a month D) Requires the use of hand-held portable computers. The inventory valuation method that has the advantages of assigning an amount to inventory on the balance sheet that approximates its current cost, and also mimics the actual flow of goods for most businesses is: 3. A) FIFO. B) Weighted average. C) LIFO D) Specific identification. Internal controls that should be applied when a business takes a physical count of inventory should include: 4. A) Pre-numbered inventory tickets. B) Counters of inventory should not be those who are responsible for the inventory. C) Counters must confirm the validity of inventory existence, amounts, and quality. D) Second counts by a different counter. E) All of the above 5. The inventory valuation method that tends to smooth out erratic changes in costs is: A) FIFO. B) Weighted average. C) LIFO. D) Specific identification. The FIFO inventory method assumes that costs for the earliest units purchased are the first to be charged to the cost of goods sold. A) True B) False 6