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Accounting Multiple Choice Questions: 11 Determine the ending

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Accounting Multiple Choice Questions:

11 Determine the ending inventory using the periodic inventory system and the LIFO inventory method:
a. $60
b. $146
c. $30
d. $56


12 Determine the ending inventory using the periodic inventory system and the average cost method:
a. $36.48
b. $56
c. $30
d. $104


13 Which of the following inventory methods is not practical unless each inventory unit can
be separately identified?
a. FIFO
b. Average
c. Specific
d. LIFO


14 The cost method that will show the highest taxable income during times of inflation is the
a. FIFO.
b. LIFO.
c. Average.
d. Specific.


15 The cost method that will yield an inventory that is closer to current prices is:
a. NIFO.
b. FIFO.
c. LIFO.
d. Average.


16 The cash, land, inventory, and accounts receivable are listed in the balance sheet. Which of the following is the correct order they should be found on the balance sheet?
a. Land, inventory, accounts receivable, cash
b. Cash, accounts receivable, inventory, land
c. Cash, inventory, accounts receivable, land
d. Inventory, accounts receivable, cash, land


17 During the taking of the physical inventory, the company inadvertently counted its inventory as $89,000 instead of the correct amount of $87,000. Indicate the effect of the misstatement on the balance sheet of the current year.
a. Assets are understated by $2,000
b. Stockholders' equity is understated by $2,000
c. Liabilities are overstated by $2,000
d. Stockholders' equity is overstated by $2,000.


18 During the taking of the physical inventory, the company inadvertently counted its inventory as $34,000 instead of the correct amount of $43,000. Indicate the effect of the misstatement on the balance sheet of the current year.
a. Assets are understated by $9,000
b. Assets are overstated by $9,000
c. Liabilities are overstated by $9,000
d. Stockholders' equity is overstated by $9,000


19 A business uses the retail method of inventory costing. The retail value of the inventory is $478,000. If the ratio of cost to retail price is 60%, what is the amount of inventory to be reported on the financial statements?
a. $286,800
b. $478,000
c. $192,200
d. cannot be determined.


20 Using the following cost data, estimate the cost of ending merchandise inventory.
a. $57,000
b. $125,000
c. $75,000
d. $123,000


21 An advantage of using the retail method of inventory costing is:
a. provides inventory figures for preparing monthly and quarterly financial statements when the periodic system is used.
b. that it may be used as an aid in taking a physical inventory.
c. that it will help identify inventory shortages
d. all are true


Questions 11,12,20 have pictures, please follow this link to get them:

http://www.mediafire.com/?7my772w8th1jedl,8z5cou798z6miqc,xj4x4kjsdh84m2k
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