Strayer ACC 557 Week 5 Chapter 6 Quiz
This Tutorial contains All possible Questions from this chapter
Question no 1
Cost of goods sold is determined only at the end of the accounting period in
- neither a perpetual nor a periodic inventory system.
- a perpetual inventory system.
- a periodic inventory system.
- both a perpetual and a periodic inventory system
Question no 2
A sales invoice is a source document that
- provides evidence of incurred operating expenses.
- provides evidence of credit sales.
- serves only as a customer receipt.
- provides support for goods purchased for resale.
Question no 3
Financial information is presented below:
- Operating Expenses $ 45,000
- Sales Returns and Allowances 9,000
- Sales Discounts 6,000
- Sales Revenue 160,000
- Cost of Goods Sold 87,000
Question no 4
The gross profit rate would be
- 503.
- 363.
- 400.
- 456.
Question no 5
The Sales Returns and Allowances account is classified as a(n)
- contra revenue account.
- contra asset account.
- expense account.
- asset account.
Question no 6
On 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 a
- credit 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.
Question no 7
Comprehensive income under IFRS
- excludes 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 GAAP
Question no 8
If a company has net sales of $700,000 and cost of goods sold of $490,000, the gross profit percentage is
- 30%.
- 70%.
- 100%.
- 15%.
STATUS
Question no 9
The consistent application of an inventory costing method is essential for
- accuracy.
- efficiency.
- comparability.
- conservatism.
Question no 10
The inventory turnover ratio is computed by dividing cost of goods sold by
- beginning inventory.
- ending inventory.
- average inventory.
- 365 days.
Question no 11
Switzer, 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.
Question no 12
Which one of the following inventory methods is often impractical to use?
- LIFO
- FIFO
- Specific identification
- Average cost
Question no 13
Overstating ending inventory will overstate all of the following except
- net income.
- owner’s equity.
- assets.
- cost of goods sold.
Question no 14
Under IFRS, companies can choose which inventory system?
LIFO FIFO
- Yes No
- Yes Yes
- No Yes
- No No
Question no 15
The lower-of-cost-or-market (LCM) basis may be used with all of the following methods except
- FIFO.
- LIFO.
- The LCM basis may be used with all of these.
- average cost.
Question no 16
Inventory items on an assembly line in various stages of production are classified as
- Raw materials.
- Merchandise inventory.
- Finished goods.
- Work in process.
