1. Inventory isa. Reported under the group of Property, Plant, and Equipment top top the balance sheet.b. Frequently reported as a miscellaneous price on the revenue statement.c. Reported as a present asset on the balance sheet.d. Usually valued at the price for which the items can it is in sold
2. Inventories affecta. Just the balance sheet.b. Only the earnings statement.c. Both the balance sheet and the earnings statement.d. Neither the balance sheet nor the earnings statement.

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3. Items waiting to be used in production are considered to bea. Life materials.b. Job-related in progress.c. Perfect goods.d. Merchandise inventory.
4. In a production business, inventory that is ready for revenue is calleda. Raw materials inventory.b. Occupational in procedure inventory.c. Finished goods inventory.d. Store offers inventory.
5. For carriers that use a perpetual list system, every one of the complying with are purposes for acquisition a physics inventory excepta. To check the accuracy that the records.b. To recognize the amount of wasted raw materials.c. To identify losses due to employee theft.d. To identify ownership of the goods.
6. Cost of items sold is computed from the following equation:a. Beginning inventory - price of goods purchased + ending inventory.b. Sales - expense of items purchased + beginning inventory - ending inventory.c. Sales + gross profit - finishing inventory + start inventory.d. Beginning inventory + expense of products purchased - finishing inventory.
7. A agency just starting in business purchased 3 merchandise perform items in ~ the adhering to prices. An initial purchase $65; second purchase $78; third purchase $68. If the agency sold two units for a full of $200 and also used FIFO costing, the gross benefit for the duration would bea. $55.b. $57.c. $62.d. $68.
8. The LIFO inventory technique assumes the the price of the latest units purchased area. The critical to be allocated to price of items sold.b. The an initial to be allocated to finishing inventory.c. The an initial to be allocated to expense of items sold.d. No allocated to cost of products sold or ending inventory.
9. Harpo"s used Cars uses the particular identification method of costing inventory. Throughout March, Harpo purchased three cars for $12,000, $14,400, and also $19,200, respectively. Throughout March, two cars are marketed for a total of $36,400. Harpo determines that at march 31, the $14,400 automobile is still on hand. What is Harpo"s gross benefit for March?a. $2,800.b. $5,200.c. $4,200.d. $10,000.
10. Which among the adhering to inventory approaches is frequently impractical come use?a. Particular identificationb. LIFOc. FIFOd. Typical cost
11. The continual application the an perform costing an approach is vital fora. Conservatism.b. Accuracy.c. Comparability.d. Efficiency.
12. Perform is reported in the jae won statements ata. Cost.b. Market.c. The higher-of-cost-or-market.d. The lower-of-cost-or-market.
13. Under GAAP, companies can select which list system?LIFO FIFOa. Yes Nob. Yes Yesc. No Yesd. No No
14. Transactions that influence inventories top top hand have actually an effect on both the balance sheet and also the earnings statement.a. True.b. False.
15. Under the FIFO method, the costs of the earliest systems purchased are the an initial charged to cost of items sold.a. True.b. False.
16. The expense of goods available for sale is composed of the start inventory add to the expense of items purchased.a. True.b. False.

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17. In a perpetual inventory system, the expense of goods sold under the FIFO method is based on the expense of the latest items on hand throughout the period.a. True.b. False.
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