Here's another study guide that I would like to have guidance for the answers that I got wrong.

Question 1 0 out of 5 points The following data were extracted from the records of Welmark Company: Sales revenue of 450 units at $35 per unit; Beginning inventory of 100 units at $16 per unit; Purchases of 400 units at $20 per unit. Welmark's most recent income statement showed cost of goods sold of $8,640. Welmark was using which method for valuing inventory? Selected Answer: FIF O Question 2 5 out of 5 points A company purchased merchandise inventory on credit for $300 per unit, and later sold the inventory for $500 per unit. The journal entry to record the purchase of inventory included a debit to: Selected Answer: Merchandise Inventory Question 3 0 out of 5 points TG Industries reported the following: Net Sales of $100,000; Cost of Goods Sold of 45,000; Operating expenses of 20,000. The gross profit percentage is: Selected Answer: 45 % Question 4 0 out of 5 points When inventory prices are increasing, the FIFO costing method will generally yield a cost of goods sold that is: Selected Answer: higher than cost of goods sold under the LIFO method Question 5 5 out of 5 points Given the following data, calculate the cost of ending inventory using the LIFO costing method. 1/1--Beginning inventory of 45 units at $10 per unit; 2/25Purchases of 40 units at $12 per unit; 6/15Purchases of 30 units at $13 per unit; 9/20Purchases of 25 units at $14 per unit; 12/31--Ending inventory of 40 units? Selected Answer: $40 0 Question 6 0 out of 5 points An error in the ending inventory for the year ended December 31, 2006: Selected Answer: automatically creates errors in the ending inventory balance in the 2006 and 2007 financial statements Question 7 0 out of 5 points How do purchases returns and allowances and purchases discounts affect net purchases? Selected Answer: Purchases returns and allowances are added to net purchases; purchases discounts are subtracted from net purchases. Question 8 5 out of 5 points Given the following data, what is the cost of goods sold? Beginning inventory of 380,000; Purchases discounts of 10,000; Ending inventory of 340,000; Freight-in of 20,000; Purchases of 1,250,000? Selected Answer: $1,300,0 00 Question 9 5 out of 5 points The lower-of-cost-or-market rule requires a company to report inventories at the lesser of: Selected Answer: historical cost or current replacement cost Question 10 5 out of 5 points If a company is using a perpetual inventory system, the balance in its inventory account three-quarters of the way through an accounting period would be equal to: Selected Answer: the inventory on hand at the beginning of the period plus goods purchased during the accounting period minus goods sold during the period Question 11 0 out of 5 points Ending inventory for the year ended December 31, 2006, is overstated by $10,000. How will this affect net income for 2007? Selected Answer: Net income for 2007 will be overstated by $10,000. Question 12 0 out of 5 points Given the following data, by how much would taxable income change if LIFO is used rather than FIFO? Beginning inventory of 4,000 units at $55; Purchases of 6,800 units at $60; Units sold of 7,800? Selected Answer: increase by $15,000 Question 13 0 out of 5 points Given the following data, by how much would taxable income change if FIFO is used rather than LIFO? Beginning inventory of 1,000 units at $25; Purchases of 2,400 units at $30; Units sold of 1,500? Selected Answer: increase by $5,000 Question 14 0 out of 5 points When inventory prices have remained constant for several accounting periods, the FIFO costing method will generally result in: Selected Answer: a higher cost of goods sold than under LIFO Question 15 0 out of 5 points A company whose inventory consists of very unique items would probably use which inventory method? Selected Answer: first-in, firstout Question 16 5 out of 5 points When inventory prices are increasing, the FIFO costing method will generally result in a: Selected Answer: higher gross profit than under LIFO Question 17 5 out of 5 points Greenspan Company's ending inventory (at cost) was $115,000. Greenspan would have had to pay $120,000 to replace the ending inventory. Before consideration of the lower-of-cost-or-market rule, Greenspan's cost of goods sold was $165,000. Which of the following statements reflect the correct the application of the LCM rule? Selected Answer: Ending Inventory balance will be $115,000, and Cost of Goods Sold will be $165,000. Question 18 0 out of 5 points When using the Average-cost method to determine the cost of inventory, the average cost per unit is calculated as the: Selected Answer: cost of goods sold divided by the number of units sold Question 19 0 out of 5 points Given the following data, what is the cost of beginning inventory? Sales revenue of 1,450,000; Cost of goods sold of 845,000; Ending inventory of 310,000; Purchases of 950,000? Selected Answer: $1,485,0 00 Question 20 0 out of 5 points A company mistakenly destroys a unit of inventory that originally cost $20. The company included the cost of the destroyed unit in cost of goods sold on the income statement rather than recognizing it as a loss. This action is justifiable based on: Selected Answer: None of these answers are correct. According to GAAP, a separate loss must be recognized. Question 21 0 out of 5 points When inventory prices are falling, the FIFO method will generally yield a gross profit that is: Selected Answer: [None Given] Question 22 0 out of 5 points Given the following data, what is the value of the cost of goods sold as determined by the FIFO method? Sales revenue of 100 units at $15 per unit; Beginning inventory of 40 units at $9 per unit; Purchases of 80 units at $10 per unit? Selected Answer: $96 7 Question 23 5 out of 5 points When applying the lower-of-cost-or-market rule, market value generally refers to: Selected Answer: current replacement cost Question 24 0 out of 5 points The gross profit rate is calculated as: Selected Answer: net sales revenue minus cost of goods sold Question 25 0 out of 5 points In a merchandising business, gross profit is equal to sales revenue minus: Selected Answer: the sum of cost of goods sold, operating expenses, and prepaid expenses Question 26 0 out of 5 points Data for Be-Dazzled Shop for the year ended are as follows: Sales revenue of $200,000; Cost of goods sold of 130,000; Beginning inventory of 70,000; Ending inventory of 60,000. Inventory turnover is: Selected Answer: 1.8 6 Question 27 5 out of 5 points Inventory turnover is calculated as: Selected Answer: cost of goods sold divided by average inventory Question 28 0 out of 5 points The disclosure principle requires that management prepare financial reports that disclose all of the following types of information except: Selected Answer: the method of inventory used Question 29 0 out of 5 points If ending inventory on December 31, 2006, is overstated, then: Selected Answer: gross profit for the year ended December 31, 2006, will be understated Question 30 0 out of 5 points Ace Company began the current accounting period with 8,000 units of inventory purchased for $110 per unit. Ace sells its units at $200 per unit. Ace would experience a LIFO liquidation if: Selected Answer: Any of these answers is correct. Question 31 0 out of 5 points A perpetual inventory system offers all the following advantages except: Selected Answer: inventory balances are always current Question 32 0 out of 5 points Which inventory method gives the most realistic net income? Selected Answer: Average-cost, because it averages old and recent costs Question 33 0 out of 5 points For a company using LIFO, large purchases of inventory near the end of the year will: Selected Answer: All of these answers are correct. Question 34 0 out of 5 points The following data were extracted from the records of Welmark Company: Sales revenue of 450 units at $35 per unit; Beginning inventory of 100 units at $16 per unit; Purchases of 400 units at $20 per unit. Welmark's most recent income balance sheet showed ending inventory of $800. Welmark was using which method for valuing inventory? Selected Answer: Averagecost Question 35 0 out of 5 points The lower-of-cost-or-market rule is based on accounting: Selected Answer: realis m Question 36 0 out of 5 points When the FIFO method is used, ending inventory is assumed to consist of: Selected Answer: the units with the highest per unit cost Question 37 5 out of 5 points The conservatism principle in accounting means that a company should: Selected Answer: report items in the financial statements at amounts that lead to the most pessimistic immediate financial results Question 38 5 out of 5 points A widely used method for estimating the value of ending inventory is the: Selected Answer: gross profit method Question 39 0 out of 5 points Which of the following would be included in the Cost of Goods Sold account on a merchandising company's income statement? Selected Answer: sales commissions Question 40 0 out of 5 points Unlike the periodic inventory system, the perpetual inventory system: Selected Answer: does not require an annual count of the ending inventory