acc 200 chapter 6

Adopting uniform accounting methods from period to period exemplifies which accounting principle?

A company chooses to report the least optimistic figures in its financial statements when multiple options are available. Which principle are they following?

What is the primary goal of maintaining effective inventory controls?

What is the formula used to determine the Cost Of Goods Sold (COGS)?

Which of the following inventory costing methods is most appropriate for a business selling custom-made jewelry?

Which costing method is based on the assumption that the first units purchased are the first to be sold?

Which of the following statements is true regarding the last-in, first-out (LIFO) inventory costing method?

Under the weighted-average method, how is the cost per unit determined after each purchase?

In a period of rising costs, which inventory costing method generally results in the highest cost of goods sold?

Which inventory costing method typically results in the highest ending inventory value during a period of rising costs?

When costs are declining, which inventory method typically results in a higher net income?

How does the application of the lower-of-cost-or-market (LCM) rule affect the financial statements?

Under the lower-of-cost-or-market (LCM) rule, if the market value of inventory falls below its historical cost, how is this accounted for?

What does the inventory turnover ratio measure?

What does a high inventory turnover ratio generally indicate?

What does 'days' sales in inventory' measure?

A company consistently uses the LIFO (Last-In, First-Out) method for inventory valuation. Which accounting principle is being followed?

Which of the following best describes a company adhering to the disclosure principle regarding its inventory?

What action exemplifies a company's adherence to the materiality concept in inventory management?

A company discovers that some of its inventory is damaged. According to good inventory controls, what is the appropriate action?

The costs are different for different groups of inventory, which inventory costing method must be used?

Under which of the following scenarios would the weighted-average method be most suitable?

In a period of declining costs, which inventory valuation method would typically result in the lowest cost of goods sold?

What is the primary difference in the definition of 'market value' under IFRS compared to other accounting standards when applying the lower-of-cost-or-market rule?

A retailer's inventory turnover ratio has significantly decreased from the previous year. What might this indicate?

A company recorded damaged inventory properly. Which of the following is the company following?

Which type of inventory does NOT require a specific identification method?

If the first unit was purchased for $10 and the second unit was purchased for $12, what is the weighted-average? (Round to the nearest cent)

Which option is NOT a consideration with financial statements?

A company wants to journalize the October 16 purchase of merchandise inventory on account. Which costing method should they use given no other data?

When should the company journalize the October 31 sale of merchandise inventory on account.

A company is using perpetual inventory method. The Cost of Goods Sold is $3,766. The ending inventory is $1,507. Which costing method is most likely?

Accounts Payable increased by $1,440, which type of journal entry is this?

Costs of Goods Sold (COGS) is lower under FIFO than under LIFO when which circumstances are present?

FIFO inventory will be the highest, and LIFO inventory will be the lowest when

Which action does NOT require a journal entry?

Inventory turnover is equal to which of the following?

A high inventory rate indicates

Days' sales in inventory is equal to

For inventory with an expiration date, what must a company do?

Why would Crystal Phones have trouble selling its products?

What underlying assumption is made when using the FIFO inventory costing method?

Which accounting principle emphasizes reporting sufficient details for external parties to make informed decisions about a company?

Why is it important to perform physical counts of inventory on a regular basis?

How does applying the conservatism principle affect inventory accounting?

What is the distinctive feature of the specific identification method?

When might specific identification be the most appropriate inventory costing method?

How is the weighted-average cost per unit typically calculated in a perpetual inventory system?

In a period of rising prices, how does the LIFO method generally affect the balance sheet?

During periods of rising costs, which inventory costing method tends to report the lowest net income?

What is the main reason for using the lower-of-cost-or-market (LCM) rule?

Under IFRS, how does the definition of 'market value' differ from other accounting standards when applying the lower-of-cost-or-market rule?

A significant decrease in a retailer's inventory turnover ratio from one year to the next could indicate what problem?

What does a higher-than-average 'days' sales in inventory' indicate for a company, especially one dealing with perishable goods?

When costs are declining, which of the following inventory costing methods generally results in the lowest cost of goods sold?

Boston Cycles started October with 12 bicycles that cost $42 each. On October 16, the company bought 40 bicycles for $68 each. On October 31, the company sold 34 bicycles for $100 each. If they use LIFO, what journal entries are made? (Select all that apply.)