Question 1

The _____________________ method of assigning costs to inventory and cost of goods sold assumes that the inventory items are sold in the order acquired.

Accepted Answer

The answer of The _____________________ method of assigning costs to...

Question 2

When applying the lower of cost or market method of inventory valuation, market is defined as the ______________________.

Accepted Answer

The answer of When applying the lower of cost or...

Question 3

When the __________ method is used with a periodic inventory system, cost of goods sold is assigned costs from the most recent purchases for the period.

Accepted Answer

The answer of When the __________ method is used with...

Question 4

Regardless of what inventory method or system is used, cost of goods available for sale must be allocated between ___________________ and ___________________.

Accepted Answer

The answer of Regardless of what inventory method or system...

Question 5

The ______________________ method of assigning costs to inventory and cost of goods sold under the perpetual system requires that the cost of goods available for sale be divided by the units of inventory available when each sale takes place.

Accepted Answer

The answer of The ______________________ method of assigning costs to...

Question 6

When purchase costs regularly rise, the ___________________ method of inventory valuation yields the lowest gross profit and net income, providing a tax advantage.

Accepted Answer

The answer of When purchase costs regularly rise, the ___________________...

Question 7

The cost of an inventory item includes the _____________ of an inventory minus any _____________ plus ______________ costs necessary to put it in a place and condition for sale.

Accepted Answer

The answer of The cost of an inventory item includes...

Question 8

The ______________________ method of assigning costs to inventory and cost of goods sold assumes that the most recent purchases are sold first.

Accepted Answer

The answer of The ______________________ method of assigning costs to...

Question 9

The ____________________ ratio reflects how much inventory is available in terms of the number of days' sales.

Accepted Answer

The answer of The ____________________ ratio reflects how much inventory...

Question 10

If damaged goods can be sold at a reduced price, they are included in inventory at their ________________________.

Accepted Answer

The answer of If damaged goods can be sold at...

Question 11

An advantage of the _________________ method of inventory valuation is that it tends to smooth out the effect of erratic changes in costs.

Accepted Answer

The answer of An advantage of the _________________ method of...

Question 12

The _____________________ is a measure of how quickly a merchandiser sells its inventory during a period.

Accepted Answer

The answer of The _____________________ is a measure of how...

Question 13

An overstated beginning inventory will ______________ cost of goods sold and _____________ net income in that year.

Accepted Answer

The answer of An overstated beginning inventory will ______________ cost...

Question 14

If the shipping terms are _______________, ownership of the shipped goods passes from the seller to the buyer when the goods reach the buyer's location.

Accepted Answer

The answer of If the shipping terms are _______________, ownership...

Question 15

The ______________________ method of assigning costs to inventory and cost of goods sold is usually only practical for companies with expensive, custom-made inventory.

Accepted Answer

The answer of The ______________________ method of assigning costs to...

Question 16

When purchase costs regularly rise, the ___________________ method of inventory valuation yields the highest gross profit and net income.

Accepted Answer

The answer of When purchase costs regularly rise, the ___________________...

Question 17

The _________________ method is commonly used to estimate the value of inventory that has been destroyed, lost or stolen.

Accepted Answer

The answer of The _________________ method is commonly used to...

Question 18

Some companies use the _________________ constraint, also called the cost-to-benefit constraint, to justify assigning incidental costs of acquiring merchandise directly to cost of goods sold.

Accepted Answer

The answer of Some companies use the _________________ constraint, also...

Quiz 5: Reporting and Analyzing Inventories

The _____________________ method of assigning costs to inventory and cost of goods sold assumes that the inventory items are sold in the order acquired.

When applying the lower of cost or market method of inventory valuation, market is defined as the ______________________.

When the __________ method is used with a periodic inventory system, cost of goods sold is assigned costs from the most recent purchases for the period.

Regardless of what inventory method or system is used, cost of goods available for sale must be allocated between _ and _.

The ______________________ method of assigning costs to inventory and cost of goods sold under the perpetual system requires that the cost of goods available for sale be divided by the units of inventory available when each sale takes place.

When purchase costs regularly rise, the ___________________ method of inventory valuation yields the lowest gross profit and net income, providing a tax advantage.

The cost of an inventory item includes the _______ of an inventory minus any _ plus ________ costs necessary to put it in a place and condition for sale.

The ______________________ method of assigning costs to inventory and cost of goods sold assumes that the most recent purchases are sold first.

The ____________________ ratio reflects how much inventory is available in terms of the number of days' sales.

If damaged goods can be sold at a reduced price, they are included in inventory at their ________________________.

An advantage of the _________________ method of inventory valuation is that it tends to smooth out the effect of erratic changes in costs.

The _____________________ is a measure of how quickly a merchandiser sells its inventory during a period.

An overstated beginning inventory will __ cost of goods sold and _ net income in that year.

If the shipping terms are _______________, ownership of the shipped goods passes from the seller to the buyer when the goods reach the buyer's location.

The ______________________ method of assigning costs to inventory and cost of goods sold is usually only practical for companies with expensive, custom-made inventory.

When purchase costs regularly rise, the ___________________ method of inventory valuation yields the highest gross profit and net income.

The _________________ method is commonly used to estimate the value of inventory that has been destroyed, lost or stolen.

Some companies use the _________________ constraint, also called the cost-to-benefit constraint, to justify assigning incidental costs of acquiring merchandise directly to cost of goods sold.