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Five ACC Multiple Choice Questions




Question;1. According to IFRS, how should inventory be valued on the balance sheet?A) Historical costB) Market valueC) At the price paid to get the inventory ready for saleD) Lower of cost and net realizable value2. In a period when inventory costs from the supplier are increasing, which of the following inventory flow assumptions will result in the highest net income?A) FIFOB) Cannot tell from the information providedC) Net realizable valueD) Average cost3. In a periodic inventory system, what type of entry is required to record the cost of sales?A) An adjusting entryB) A transactional entryC) None of the other answers is correct - the cost of sales is not recorded in a periodic systemD) A closing entry4. Which inventory system keeps a running total of purchases and sales of inventory with adjustments that reflect changes as they occur?A) A just-in-time systemB) A perpetual systemC) A specific identification systemD) A periodic system5. The use of the FIFO inventory flow assumptions means that:A) there is the best matching of costs to the physical flow of goods.B) the periodic inventory system must be used.C) the ending inventory includes the oldest costs.D) the oldest units are included in cost of sales.


Paper#41328 | Written in 18-Jul-2015

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