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ACC 557 Week 5 Ch 5 & 6 Quiz

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ACC 557 Week 5 Ch 5 & 6 Quiz;Week 5 Quiz, Ch 5 & 6;Multiple Choice Question 178;;In a perpetual inventory system, a return of defective merchandise by a purchaser is recorded by crediting;Purchases.;Purchase Allowance.;Purchase Returns.;Inventory.;Multiple Choice Question 127;;Gross profit does not appear;to be relevant in analyzing the operation of a merchandiser.;on a multiple-step income statement.;on a single-step income statement.;on the income statement if the periodic inventory system is used because it cannot be calculated.;IFRS Multiple Choice Question 250;;Under GAAP, companies generally classify income statement items by;nature or function.;date incurred.;function.;nature.;Multiple Choice Question 154;;During August, 2013, Baxter's Supply Store generated revenues of $30,000. The company's expenses were as follows: cost of goods sold of $18,000 and operating expenses of $2,000. The company also had rent revenue of $500 and a gain on the sale of a delivery truck of $1,000.;Baxter's operating income for the month of August, 2013 is;$10,500.;$11,500.;$12,000.;$10,000.;Multiple Choice Question 177;;Kate Company purchased inventory from Phoebe Company. The shipping costs were $500 and the terms of the shipment were FOB shipping point. Kate would have the following entry regarding the shipping charges;Inventory;500;Cash;500;Freight-out;500;Cash;500;There is no entry on Kate's books for this transaction.;Freight Expense;500;Cash;500;IFRS Multiple Choice Question 254;;For the income statement, IFRS requires;single-step approach or multiple-step approach.;no specific income statement approach.;multiple-step approach.;single-step approach.;Multiple Choice Question 99;;A credit sale of $2,700 is made on July 15, terms 2/10, n/30, on which a return of $150 is granted on July 18. What amount is received as payment in full on July 24?;$2,499;$2,700;$2,646;$2,550;Multiple Choice Question 105;;Romanoff Industries had the following inventory transactions occur during 2013;Units;Cost/unit;2/1/13;Purchase;18;$45;3/14/13;Purchase;31;$47;5/1/13;Purchase;22;$49;The company sold 50 units at $70 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company?s after-tax income using FIFO? (rounded to whole dollars);$829;$1,184;$774;$1,106;Multiple Choice Question 97;;Netta Shutters has the following inventory information.;Nov. 1;Inventory;15 units @ $8.00;8;Purchase;60 units @ $8.30;17;Purchase;30 units @ $8.40;25;Purchase;45 units @ $8.80;A physical count of merchandise inventory on November 30 reveals that there are 45 units on hand. Assume a periodic inventory system is used. Ending inventory under FIFO is;$369.;$396.;$870.;$897.;Multiple Choice Question 76;;Which of the following statements is correct with respect to inventories?;The FIFO method assumes that the costs of the earliest goods acquired are the last to be sold.;It is generally good business management to sell the most recently acquired goods first.;Under FIFO, the ending inventory is based on the latest units purchased.;FIFO seldom coincides with the actual physical flow of inventory.;Multiple Choice Question 133;;On July 31, Tractor Supplies sold merchandise to J. Robson on account. The sales price was $8,400, and the cost of goods sold was $6,300. The sales revenue was recorded immediately, but the entry recording the cost of goods sold was dated August 2. As a result, net income for July was;not affected, but the net income for August is understated.;overstated by $8,400.;overstated by $6,300.;overstated by $2,100.;IFRS Multiple Choice Question 229;;The major IFRS requirements related to accounting for and reporting inventories are;the same as GAAP with a couple of exceptions.;completely different fom GAAP.;not comparable to GAAP.;the same as GAAP.;Multiple Choice Question 81;;Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2013 are as follows;Units;Per unit price;Total;Balance, 1/1/13;200;$5.00;$1,000;Purchase, 1/15/13;100;5.30;530;Purchase, 1/28/13;100;5.50;550;An end of the month (1/31/13) inventory showed that 140 units were on hand. How many units did the company sell during January, 2013?;60;140;260;200;Multiple Choice Question 158;;Over the last few years, Mohawk Industries has operated with a gross profit rate of 35%. On January 1, 2012, the company had inventory on hand with a cost of $750,000. Purchases of merchandise during January amounted to $215,000, and sales for the month were $480,000. Using the gross profit method, what is the estimated inventory at January 31;$653,000.;$480,000.;$169,750.;$627,250.;Multiple Choice Question 84;;Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2013 are as follows;Units;Per unit price;Total;Balance, 1/1/13;200;$5.00;$1,000;Purchase, 1/15/13;100;5.30;530;Purchase, 1/28/13;100;5.50;550;An end of the month (1/31/13) inventory showed that 140 units were on hand. If the company uses FIFO and sells the units for $10 each, what is the gross profit for the month?;$1,838;$1,900;$1,220;$1,282

 

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