ACCT 212 CheckPoints Week 4 Quiz: DeVry University( 100% CORRECT)

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ACCT 212 CheckPoints Week 4 Quiz: DeVry University( 100% CORRECT) 1. Question : (TCO 4) The cost of the inventory that the business has sold to customers is called Student Answer: invento... ry. cost of goods sold. purchases. gross profit. Instructor Explanation: See Chapter 6. Points Received: 3 of 3 Comments: Question 2. Question : (TCO 4) The cost of inventory that is still on hand and has not been sold to customers is called Student Answer: cost of goods sold, an expense that appears on the balance sheet. inventory, a current asset that appears on the income statement. inventory, a current asset that appears on the balance sheet. purchases, an expense that appears on the income statement. Instructor Explanation: See Chapter 6. Points Received: 3 of 3 Comments: Question 3. Question : (TCO 4) The inventory system that uses computer software to keep a running record of inventory on hand is the Student Answer: cost of goods sold inventory system. periodic inventory system. perpetual inventory system. hybrid inventory system. Instructor Explanation: See Chapter 6. Points Received: 3 of 3 Comments: Question 4. Question : (TCO 4) All of the following costs would be included in inventory except for Student Answer: freight-in. advertising. taxes paid on the purchase price. insurance while in transit. Instructor Explanation: See Chapter 6. Points Received: 3 of 3 Comments: Question 5. Question : (TCO 4) If the cost to purchase a unit of inventory does not change, ending inventory Student Answer: will be the highest under FIFO. will be the highest under LIFO. cannot be computed using the average-cost method. will be the same under LIFO and FIFO. Instructor Explanation: See Chapter 6. Points Received: 3 of 3 Comments: Question 6. Question : (TCO 4) To determine cost of goods sold under the FIFO method Student Answer: the first costs into inventory are the first costs assigned to cost of goods sold. the last costs into inventory are the first costs assigned to cost of goods sold. the average cost of the inventory must be determined. the company must first determine the specific units sold. Instructor Explanation: See Chapter 6. Points Received: 0 of 3 Comments: Question 7. Question : (TCO 4) When comparing the results of LIFO and FIFO when inventory costs are decreasing Student Answer: cost of goods sold will be the lowest using FIFO. ending inventory will be the highest using FIFO. cost of goods sold will be the highest using LIFO. ending inventory will be the highest using LIFO. Points Received: 3 of 3 Comments: Question 8. Question : (TCO 4) The disclosure principle requires that management prepare financial reports that disclose all of the following types of information except Student Answer: information that is relevant to decision making. forecasts of expected future earnings to help investors decide whether to invest in the company. the method of inventory used. information that facilitates comparison with other companies' financial reports. Instructor Explanation: See Chapter 6. Points Received: 3 of 3 Comments: Question 9. Question : (TCO 4) When applying the lower-of-cost-or-market rule, market value generally refers to Student Answer: FIFO cost using the periodic method. LIFO cost using the periodic method. current sales price of the inventory. current replacement cost of the inventory. Instructor Explanation: See Chapter 6. Points Received: 3 of 3 Comments: Question 10. Question : (TCO 4) A gross profit margin of 30% means that Student Answer: for each dollar of sales, the company has a cost of goods sold of seventy cents. for each dollar of sales, the company has a gross profit of thirty cents. for each dollar of sales, the company has a cost of goods sold of thirty cents. both A and B are true. Instructor Explanation: See Chapter 6. Points Received: 3 of 3 Comments: [Show More]

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