ACC557 Financial AccountingWeek 5 Quiz

ACC557 Week5 Quiz 1-Multiple Choice Question 54Cost of goods sold is determined only at the end of the accounting period inneither a perpetual nor a periodic inventory system.a perpetual inventory system.a periodic inventory system.both a perpetual and a periodic inventory system2-Multiple Choice Question 92A sales invoice is a source document thatprovides evidence of incurred operating expenses.provides evidence of credit sales.serves only as a customer receipt.provides support for goods purchased for resale.3-Multiple Choice Question 149Financial information is presented below:Operating Expenses  $  45,000Sales Returns and Allowances  9,000Sales Discounts  6,000Sales Revenue  160,000Cost of Goods Sold  87,000The gross profit rate would be.503..363..400..456.4-Multiple Choice Question 96The Sales Returns and Allowances account is classified as a(n)contra revenue account.contra asset account.expense account.asset account.5-Multiple Choice Question 179On October 4, 2013, JT Corporation had credit sales transactions of $3,200 from merchandise having cost $1,900. The entries to record the day's credit transactions include acredit of $1,900 to Cost of Goods Sold.credit of $3,200 to Sales Revenue.debit of $1,900 to Inventory.debit of $3,200 to Inventory.6-IFRS Multiple Choice Question 257Comprehensive income under IFRSexcludes unrealized gains and losses included in net income, in contrast to GAAP.includes unrealized gains and losses included in net income, similar to GAAP.excludes unrealized gains and losses included in net income, similar to GAAP.includes unrealized gains and losses included in net income, in contrast to GAAP7-Multiple Choice Question 134If a company has net sales of $700,000 and cost of goods sold of $490,000, the gross profit percentage is30%.70%.100%.15%.8-Multiple Choice Question 118The consistent application of an inventory costing method is essential foraccuracy.efficiency.comparability.conservatism.9-Multiple Choice Question 168The inventory turnover ratio is computed by dividing cost of goods sold bybeginning inventory.ending inventory.average inventory.365 days.10-Multiple Choice Question 126Switzer, Inc. has 5 computers which have been part of the inventory for over two years. Each computer cost $600 and originally retailed for $900. At the statement date, each computer has a current replacement cost of $400. How much loss should Switzer, Inc., record for the year?$2,000.$2,500.$1,000.$1,500.11-Multiple Choice Question 72Which one of the following inventory methods is often impractical to use?LIFOFIFOSpecific identificationAverage cost12 -Multiple Choice Question 132Overstating ending inventory will overstate all of the following exceptnet income.owner's equity.assets.cost of goods sold.13-IFRS Multiple Choice Question 232Under IFRS, companies can choose which inventory system?LIFO  FIFOYes  NoYes  YesNo  YesNo  No14-Multiple Choice Question 123The lower-of-cost-or-market (LCM) basis may be used with all of the following methods exceptFIFO.LIFO.The LCM basis may be used with all of these.average cost.15-Multiple Choice Question 161Inventory items on an assembly line in various stages of production are classified asRaw materials.Merchandise inventory.Finished goods.Work in process.

ACC557 Financial Accounting Week 5 Quiz

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