16877035
Question 1
Question
The next two questions use the following facts. Oceanview Software began January with $3,500
of merchandise inventory. During January, Oceanview made the following entries for its inventory transactions:
How much was Oceanview’s inventory at the end of January?
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6 (binary/octet-stream)
Answer
-
$5,400
-
Zero
-
$4,400
-
$2,200
Question 2
Question
What was Oceanview’s gross profit for January?
Answer
-
Zero
-
$7,600
-
$5,400
-
$2,200
Question 3
Question
When does the cost of inventory become an expense?
Answer
-
When inventory is delivered to a customer
-
When inventory is purchased from the supplier.
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When cash is collected from the customer.
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When payment is made to the supplier.
Question 4
Question
If Marble Frame uses the FIFO method, the cost of the ending inventory will be
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6 46 (binary/octet-stream)
Answer
-
$39,000.
-
$36,160.
-
$36,260.
-
$36,000.
Question 5
Question
If Marble Frame uses the LIFO method, cost of goods sold will be
Image:
6 46 (binary/octet-stream)
Answer
-
$22,600.
-
$22,760.
-
$22,500.
-
$19,760.
Question 6
Question
. In a period of rising prices
Answer
-
Gross profit under FIFO will be higher than under LIFO.
-
. b. LIFO inventory will be greater than FIFO inventory.
-
Net income under LIFO will be higher than under FIFO.
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Cost of goods sold under LIFO will be less than under FIFO.
Question 7
Question
The Income Statement for Feel Good Health Foods shows gross profit of $154,000,
operating expenses of $128,000, and cost of goods sold of $213,000. What is the amount of
net sales revenue?
Answer
-
$367,000
-
341,000
-
$495,000
-
$341,000
Question 8
Question
When the inventory cost is lower than NRV, the inventory should be reported at
Answer
-
. market price of inventory
-
replacement of inventory
-
selling price of inventory less cost to sell
-
acquisition cost of inventory.
Question 9
Question
The sum of (a) ending inventory and (b) cost of goods sold is
Answer
-
goods available.
-
beginning inventory
-
gross profit.
-
net purchases.
Question 10
Question
The following data come from the inventory records of Draper Company:
Based on these facts, the gross profit for Dapper Company is
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6 52 (binary/octet-stream)
Answer
-
. $152,000.
-
$175,000.
-
$129,000
-
. Some other amount
Question 11
Question
Ellen Braun Cosmetics ended the month of May with inventory of $26,000. Ellen
Braun expects to end June with inventory of $14,000 after cost of goods sold of $103,000.
How much inventory must Ellen Braun purchase during June in order to accomplish these
results?
Answer
-
$89,000
-
$91,000
-
$115,000
-
Cannot be determined from the data given
Question 12
Question
Two financial ratios that clearly distinguish a discount chain such as Kmart from a
high-end retailer such as Saks Fifth Avenue are the gross profit percentage and the rate of
inventory turnover. Which set of relationships is most likely for Saks Fifth Avenue?
Answer
-
Gross profit percentage : Low Inventory turnover: low
-
Gross profit percentage: Low Inventory turnover: High
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Gross profit percentage: High Inventory turnover: Low
-
Gross Profit Percentage: High Inventory turnover: High
Question 13
Question
Sales are $540,000 and cost of goods sold is $330,000. Beginning and ending inventories
are $29,000 and $34,000, respectively. How many times did the company turn its inventory over
during this period?
Answer
-
17.1 times
-
. 6.7 times
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7.2 times
-
10.5 times
Question 14
Question
Kruger, Inc., reported the following data:
Kruger’s gross profit percentage is
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6 57 (binary/octet-stream)
Answer
-
. 46.1
-
51.7.
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. 47.7
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50.0
Question 15
Question
Shailene Wood Company had the following beginning inventory, net purchases, net
sales, and gross profit percentage for the first quarter of 20X6
By the gross profit method, the ending inventory should be
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5 56 (binary/octet-stream)
Answer
-
$74,000.
-
$76,000.
-
$81,000.
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$79,000.
Question 16
Question
An error understated Regan Corporation’s December 31, 20X6, ending inventory by
$42,000. What effect will this error have on total assets and net income for 20X6?
Answer
-
Assets: Understate Net Income: Understate
-
Assets: No Effect Net income: Overstate
-
Assets: Understate Net income: No effect
-
Assets: No effect Net income: No effect
Question 17
Question
. An error understated Regan Corporation’s December 31, 20X6, ending inventory by
$42,000. What effect will this error have on net income for 20X7?
Answer
-
Understate
-
. Overstate
-
No effect
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