Q11:

All inventories are reported as current assets on the statement of financial position.

Select one:

a. False

b. True

Q12:

A company just starting business made the following four inventory purchases in June:

June 1 150 units $2,600

June 10 200 units $3,900

June 15 200 units $4,200

June 28 150 units $3,300

A physical count of merchandise inventory on June 30 reveals that there are 100 units on hand. Using the average-cost method, the amount allocated to the ending inventory on June 30 is:

Select one:

a. $12,000.

b. $2,200.

c. $2,000.

d. $14,000.

Q14:

In a period of falling prices, the average-cost method results in a lower cost of goods sold than the FIFO method.

Select one:

a. True

b. False

Q15:

If goods in transit are shipped FOB destination

Select one:

a. the transportation company has legal title to the goods while the goods are in transit.

b. the buyer has legal title to the goods until they are delivered.

c. the seller has legal title to the goods until they are delivered.

d. no one has legal title to the goods until they are delivered.