the inventory evaluation method that assumes you sell

1. The inventory evaluation method that assumes you sell the most recently purchased batch of inventory is called: a. FIFO b. LIFO C. WIFO d. Weighted Average 2. The inventory evaluation method that assumes you sell the oldest purchased batch of inventory is called: a. FIFO b. LIFO C WIFO d. Weighted Average Use the following information to answer questions 3-8. Price Per Units Unit 1-Oct Purchase 40 8-Oct Purchase 25 15-Oct Purchase 18 28-Oct Purchase 37 31-Oct Sale 50 $14 $10 3. What is the cost of the inventory sold on October 31", using FIFO? a. 160 b. 80 c. 240 d. 700 4. What is the cost of the inventory sold on October 31st, using LIFO? 435 b. 555 c. 240 d. 700 5. What is the cost of the inventory sold on October 31st, using weighted average? a. Roughly 341 b. Roughly 700 C. Roughly 435 d. Roughly 236 6. Which of the above three methods gives you the highest profit (revenue minus cost)? a. FIFO b. LIFO c. Weighted Average 7. Which of the above three methods gives you the highest ending inventory value? a. LIFO b. FIFO c. Weighted Average 8. A term for when a company sells their outstanding accounts receivables balance to another company is called: a. Partitioning b. Factoring C. Liquidating d. Distributing 9. Which of the following is not a possible method for writing off receivables? a. Direct Write Off Method b. Analysis of receivables method c. % of sales method d. Gross distribution method 10. Which of the following is not an account you would use when writing off receivables? a. Account Revenue b. Bad Debt Expense C. Allowance for doubtful accounts d. Account Receivable 11. Which of the following is a contra asset account? a. Depreciation Expense b. Allowance for doubtful accounts c. Accounts Receivable d. Bad Debt Expense 12. Which of the following is not an indication that a customer will default on their account receivable balance? a. A bad credit history b. They enter bankruptcy C. A history of timely payments d. The customer cannot be located 13. Using the direct write off method, what is the journal entry when a customer who has a $500 account receivable balance cannot pay it? . a. Debit Bad Debt Expense 1. Credit Allowance for doubtful accounts b. Debit Accounts Receivable 1. Credit Cash C. Debit Bad Debt Expense 1. Credit Accounts Receivable d. Debit Cash 1. Credit Accounts Receivable 14. Using the analysis of receivables method, what is the journal entry when a company calculates an estimate of $1,000 worth of accounts receivable to be uncollectible? a. Debit Bad Debt Expense 1. Credit allowance for doubtful accounts b. Debit Accounts Receivable 1. Credit Cash C. Debit Bad Debt Expense 1. Credit Accounts receivable d. Debit Accounts Receivable 1. Credit Bad Debt Expense 15. Which of the following is not a fixed asset? a. Accounts Receivable b. Land c. Buildings d. Equipment 17. Which of the following would not be added to the initial cost of a fixed asset? a. The purchase price b. Cost to ship the asset to your business C. Cost to prepare the asset for use d. Vandalism 18. Ordinary maintenance and repairs are debited to: a. The specific asset b. Cash c. Accounts Payable d. Maintenance Expense 19. A cost that improves the a fixed asset are debited to: a. The specific asset b. Cash c. Accounts Payable d. Maintenance Expense 20. A cost that extends the useful life of an asset are debited to: a. The specific asset b. Cash c. Accumulated Depreciation d. Maintenance Expense 21. Which of the following is not a way to calculate depreciation expense? a. Straight Line b. Double Declining C. MACRS d. Value Deficiency 22. Under straight line depreciation, an asset with $50,000 cost, 10 year useful life, and 55.000 residual value would have a yearly depreciation expense of: a. $5,000 b. $10,000 c. $50,000 d. $4,500 23. The journal entry to record depreciation under any method is: a. Debit the asset 1. Credit accumulated depreciation b. Debit Depreciation expense 1. Credit the asset c. Debit Depreciation expense 1. Credit accumulated depreciation d. Debit accumulated depreciation 1. Credit depreciation expense 24. An asset with an initial cost of $25,000; with a useful life of 5 years, and a $5,000 residual value would have depreciation expense of what, in its second year? a. $5,000 b. $10,000 C. $4,000 d. $8,000 25. What would the value of accumulated depreciation be after the second year depreciation entry is made in question 24? a. $5,000 b. $10,000 C. $4,000 d. $8,000