Mod 4ACTMastery Exercise Category Mastery Exercises Period SPRING17 C 8 Router Tab My Submissions Tab Test Quiz Tab Selected Questions 1 10 of 10 Page 1 of 1 multiple choice402185570Question 1 (1 point) The factor which determines whether or not goods should be included in a physical count of inventory is a physical possession b legal title c management's judgment d whether or not the purchase price has been paid multiple choice402185596Question 2 (1 point) Inventory costing methods place primary reliance on assumptions about the flow of a good b costs c resale prices d values multiple choice402185540Question 3 (1 point) When goods are returned that relate to a prior cash sale a the Sales Returns and Allowances account should not be used b the Cash account will be credited c Sales Returns and Allowances will be credited d Accounts Receivable will be credited multiple choice402185550Question 4 (1 point) The Sales Returns and Allowances account does not provide information to management about a possible inferior merchandise b the percentage of credit sales versus cash sales c inefficiencies in filling orders d errors in filling customers multiple choice402185622Question 5 (1 point) Reporting which one of the following allows analysts to make adjustments to compare companies using different cost flow methods a FIFO reserve b inventory turnover c LIFO reserve d current replacement cost multiple choice402185516Question 6 (1 point) Which of the following items does not result in an adjustment in the merchandise inventory account under a perpetual system a a purchase of merchandise b a return of merchandise inventory to the supplier c payment of freight costs for goods shipped to a customer d payment of freight costs for goods received from a supplier multiple choice402185530Question 7 (1 point) If a purchaser using a perpetual inventory system pays the transportation costs, then the a Inventory account is increased b Inventory account is not affected c Freight Out account is increased d Delivery Expense account is increased multiple choice402185614Question 8 (1 point) The LIFO reserve is a the difference between the value of the inventory under LIFO and the value under FIFO b an amount used to adjust inventory to the lower of cost or market c the difference between the value of the inventory under LIFO and the value under average cost d the amount used to adjust inventory to history cost multiple choice402185578Question 9 (1 point) If goods in transit are shipped FOB destination a the seller has legal title to the goods until they are delivered b the buyer has legal title to the goods until they are delivered c the transportation company has legal title to the goods while the goods are in transit d no one has legal title to the goods until they are delivered multiple choice402185588Question 10 (1 point) Bonkers Bananas has the following inventory data July 1 Beginning inventory 20 units at $20 $ 400 July 7 Purchases 70 units at $21 $1,470 July 22 Purchases 10 units at $22 $ 220 $2,090 A physical count of merchandise inventory on July 30 reveals that there are 25 units on hand Using the LIFO inventory method, the amount allocated to ending inventory for July is a $550 b $505 c $535 d $500

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Mod. 4ACTMastery Exercise Category: Mastery Exercises Period: SPRING17-C-8 Router Tab My Submissions Tab Test/Quiz Tab - Selected Questions 1-10 of 10 | Page 1 of

Mod. 4ACTMastery Exercise

Category: Mastery Exercises

Period: SPRING17-C-8

Router

Tab

My Submissions

Tab

Test/Quiz

Tab - Selected

Questions 1-10 of 10 | Page 1 of 1

multiple_choice402185570Question 1 (1 point)

The factor which determines whether or not goods should be included in a physical count of inventory is ______.

a	physical possession
b	legal title
c	management's judgment
d	whether or not the purchase price has been paid

multiple_choice402185596Question 2 (1 point)

Inventory costing methods place primary reliance on assumptions about the flow of _____.

a	good
b	costs
c	resale prices
d	values

multiple_choice402185540Question 3 (1 point)

When goods are returned that relate to a prior cash sale ______.

a	the Sales Returns and Allowances account should not be used
b	the Cash account will be credited
c	Sales Returns and Allowances will be credited
d	Accounts Receivable will be credited

multiple_choice402185550Question 4 (1 point)

The Sales Returns and Allowances account does not provide information to management about ______.

a	possible inferior merchandise
b	the percentage of credit sales versus cash sales
c	inefficiencies in filling orders
d	errors in filling customers

multiple_choice402185622Question 5 (1 point)

Reporting which one of the following allows analysts to make adjustments to compare companies using different cost flow methods?

a	FIFO reserve
b	inventory turnover
c	LIFO reserve
d	current replacement cost

multiple_choice402185516Question 6 (1 point)

Which of the following items does not result in an adjustment in the merchandise inventory account under a perpetual system?

a	a purchase of merchandise
b	a return of merchandise inventory to the supplier
c	payment of freight costs for goods shipped to a customer
d	payment of freight costs for goods received from a supplier

multiple_choice402185530Question 7 (1 point)

If a purchaser using a perpetual inventory system pays the transportation costs, then the _____.

a	Inventory account is increased
b	Inventory account is not affected
c	Freight-Out account is increased
d	Delivery Expense account is increased

multiple_choice402185614Question 8 (1 point)

The LIFO reserve is _____.

a	the difference between the value of the inventory under LIFO and the value under FIFO
b	an amount used to adjust inventory to the lower of cost or market
c	the difference between the value of the inventory under LIFO and the value under average cost
d	the amount used to adjust inventory to history cost

multiple_choice402185578Question 9 (1 point)

If goods in transit are shipped FOB destination ____________.

a	the seller has legal title to the goods until they are delivered
b	the buyer has legal title to the goods until they are delivered
c	the transportation company has legal title to the goods while the goods are in transit
d	no one has legal title to the goods until they are delivered

multiple_choice402185588Question 10 (1 point)

Bonkers Bananas has the following inventory data:

July 1	Beginning inventory	20 units at $20	$ 400
July 7	Purchases	70 units at $21	$1,470
July 22	Purchases	10 units at $22	$ 220
			$2,090

A physical count of merchandise inventory on July 30 reveals that there are 25 units on hand. Using the LIFO inventory method, the amount allocated to ending inventory for July is ______.