R
Rick
Guest
1.Under which method of inventory cost flows is the cost flow assumed to be in the reverse order in which the expenditures were made?
a.weighted average
b.last-in, first-out
c.first-in, first-out
d.average cost
2.If a company mistakenly counts more items during a physical inventory than actually exist, how will the error affect their bottom line?
a.No change to net income.
b.Net income will be overstated
c.Net income will be understated.
d.Only gross profit will be affected.
3.Kristin's Boutiques has identified the following items for possible inclusion in its December 31, 2010 inventory. Which of the following would not be included in the year end inventory?
a.Merchandise purchased FOB shipping point was picked up by the freight company but had still not arrived at Kristin's Boutique as of December 31, 2010.
b.Kristin has in its warehouse merchandise on consignment from Abby Co.
c.Kristin has sent merchandise to various retailers on a consignment basis
d.Kristin has merchandise on hand which has been returned by customers because of wrong size.
4.Under a perpetual inventory system, when a shortage is discovered
a.Merchandise Inventory is debited
b.Cost of Merchandise Sold is credited
c.Inventory Shortages is credited
d.Merchandise Inventory is credited
a.weighted average
b.last-in, first-out
c.first-in, first-out
d.average cost
2.If a company mistakenly counts more items during a physical inventory than actually exist, how will the error affect their bottom line?
a.No change to net income.
b.Net income will be overstated
c.Net income will be understated.
d.Only gross profit will be affected.
3.Kristin's Boutiques has identified the following items for possible inclusion in its December 31, 2010 inventory. Which of the following would not be included in the year end inventory?
a.Merchandise purchased FOB shipping point was picked up by the freight company but had still not arrived at Kristin's Boutique as of December 31, 2010.
b.Kristin has in its warehouse merchandise on consignment from Abby Co.
c.Kristin has sent merchandise to various retailers on a consignment basis
d.Kristin has merchandise on hand which has been returned by customers because of wrong size.
4.Under a perpetual inventory system, when a shortage is discovered
a.Merchandise Inventory is debited
b.Cost of Merchandise Sold is credited
c.Inventory Shortages is credited
d.Merchandise Inventory is credited