Review Game Zone
Flash Cards
(current)
Games
Teachers
Search
Adv. Accounting - Ch. 6 Review
Test Description: INVENTORY!
Instructions: Answer all questions to get your test result.
1) A file of stock records for all merchandise on hand is called a(n)
A
accounts payable ledger
B
stock ledger
C
inventory record
D
merchandise ledger
2) The period of time needed to sell an average amount of merchandise inventory is called the
A
merchandise sold ratio
B
average sales turnover ratio
C
average number of days' sales in merchandise inventory
D
merchandise inventory turnover ratio
3) The person or business that receives goods on consignment is called the
A
consignment buyer
B
owner
C
consignee
D
consignor
4) If an inventory is taken once each year, the business must be using the perpetual inventory method
A
False
B
True
5) If ending inventory is understated, retained earnings will be overstated
A
True
B
False
6) A perpetual inventory maintains a continuous record of merchandise inventory increases and decreases
A
False
B
True
7) When using the lower of cost or market, compare the cost of inventory using your normal costing method to the current replacement cost. The inventory's valued at whichever is lower
A
False
B
True
8) A business may fail if it does not have enough inventory on hand, but will not fail if it has an excess of inventory
A
False
B
True
9) Comparing inventory costing methods in times of rising prices, the first-in, first-out method will result in the highest cost of merchandise sold
A
False
B
True
10) FOB shipping point means that the title to the goods passes to the buyer when the vendor delivers the goods at the buyer's place of business.
A
False
B
True
*select an answer for all questions
Check Results & Get Answers
Play Games with the Questions Above
Teachers: Create FREE classroom games with your questions
Click for more info!
©2007-2024
ReviewGameZone.com
|
About
|
Privacy
|
Contact
|
Terms
|
Site Map
WAIT! Find what you needed?
×
Still Looking for the Answers?
Have Another Question?
Play a Review Game with These Questions?
Want to Make Your Own Test Like This One?