Chapter+7

Pre-Test [|(See related pages)]




 * ===Your Results:=== ||
 * The correct answer for each question is indicated by a [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/correct.gif width="15" height="15" caption="This is the correct answer."]]. ||

Which of the following statements regarding inventory management is (are) true? || Which of the following statements regarding the days to sell measure is (are) true? || If excessive quantities of inventory are ordered: || A merchandise company's beginning inventory plus merchandise purchases minus ending inventory equals: || Which of the following would be in the raw materials inventory of a company making cheese? || Which of the following would be in the finished goods inventory of a company making cheese? || Your company buys 500 pairs of socks at $3 each (including other purchasing costs such as transportation) and sells them for $5 each. Which of the following statement is true? || Alphabet Company, which uses the periodic inventory method, buys different letters for resale. It buys A thru G in January at $4 per letter. In February, it buys H thru L at $6 per letter. It buys M thru R in March at $7 per letter. It sells A, D, E, H, J and N in April. If the company uses the specific identification method, what is the cost of its ending inventory (rounded to the nearest dollar)? || If the company uses the weighted average method, what is the cost of its ending inventory (rounded to the nearest dollar)? || If the company uses the LIFO method, what is the cost of its ending inventory (rounded to the nearest dollar)? || If the company uses the FIFO method, what is the cost of its ending inventory (rounded to the nearest dollar)? || The LIFO inventory costing method assumes that the cost of the units most recently purchased are: || During 2005, Shockglass Company recorded inventory purchases of $45,000 and cost of goods sold of $50,000. If inventory at the beginning of the year was $15,000, the ending inventory balance must have been: || Which of the following statements is true? || An adjustment to ending inventory under the lower of cost or market (LCM) rule would be least likely to be recorded by a company that sells: || For external financial statement reporting purposes, the amount of loss of inventory value is typically reported on the: || Your company has 100 units in inventory, purchased at $16 per unit, that could be replaced for $14. || For a merchandiser, inventory turnover refers to how many times: || Your company sells $469,300 of goods during the year at a cost of goods sold of $398,000. Inventory was $29,783 at the beginning of the year and $34,038 at the end of the year. What is the inventory turnover ratio? || How long on average does it take to sell something from inventory after it is purchased? || Which of the following statements is true? || One of the most common sources of misstatement in financial statements is the: ||
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 1a || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * 1a || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **A)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || The LIO method assumes that the costs for the newest goods (the last ones in) are used first and the older costs are left in ending inventory. ||
 * >  ||> A ||> **B)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] ||> During a period of rising prices, LIFO results in a lower income tax expense than does FIFO. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || C)[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || Both A) and B) above are true ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **D)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || Neither A) nor B) above is true ||
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 2b || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 2b || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * 2b || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **A)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || If the inventory turnover ratio increases, the days to sell measure decreases. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **B)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || The days to sell measure can help managers make pricing and ordering decisions for inventory. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **C)[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]]** || Both A) and B) above are true ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **D)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || Neither A) nor B) above is true ||
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 3b || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 3b || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * 3b || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **A)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || storage and interest costs may increase. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **B)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || goods might have to be sold at large discounts. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **C)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || there is a greater probability that goods will become damaged or obsolete. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **D)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || all of the above. ||
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 4c || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 4c || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * 4c || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **A)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || ending inventory. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **B)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || cost of goods sold. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **C)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || goods available for sale. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **D)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || sales level. ||
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 5c || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 5c || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * 5c || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **A)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || Milk and cream used to make the cheese. ||
 * ,lzmc;zmcz ||  ||   || s been made but is curing before being ready to sell. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **C)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || Cured cheese that is waiting to be shipped to retailers. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **D)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || All of the above. ||
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 6c || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 6c || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * 6c || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **A)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || Milk and cream used to make the cheese. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **B)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || Cheese that has been made but is curing before being ready to sell. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **C)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || Cured cheese that is waiting to be shipped to retailers. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **D)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || All of the above. ||
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 7c || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 7c || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * 7c || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **A)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || The sales revenue is $2,000. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **B)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || The gross profit is $2,000. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **C)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || The cost of goods sold is $2,000. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **D)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || The net income is $2,000. ||
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 8c || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 8c || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * 8c || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **A)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || $31 ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **B)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || $69 ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **C)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || $76 ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **D)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || $100 ||
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 9 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 9 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * 9 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **A)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || $38 ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **B)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || $48 ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **C)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || $67 ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **D)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || $75 ||
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 10 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 10 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * 10 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **A)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || $24 ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **B)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || $42 ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **C)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || $58 ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **D)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || $76 ||
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 11 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 11 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * 11 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **A)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || $24 ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **B)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || $42 ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **C)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || $58 ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **D)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || $76 ||
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 12 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 12 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * 12 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **A)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || the last to be assigned to cost of goods sold. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **B)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || the first to be assigned to ending inventory. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **C)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || the first to be assigned to cost of goods sold. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **D)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || not assigned to cost of goods sold or ending inventory. ||
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 13 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 13 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * 13 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **A)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || $10,000. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **B)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || $25,000. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **C)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || $26,000. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **D)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || $27,000. ||
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 14 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 14 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * 14 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **A)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || When unit costs are steadily rising or falling, the weighted average cost method yields a cost of goods sold between that of FIFO and LIFO. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **B)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || FIFO will lead to the highest net income if unit costs are falling. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **C)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || LIFO will always yield a smaller net income than FIFO. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **D)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || Specific identification is the most practical, but least accurate, measure of cost and net income. ||
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 15 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 15 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * 15 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **A)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || a household staple like laundry detergent. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **B)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || a fad product like bathing suits. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **C)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || seasonal items like snow blowers. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **D)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || high-tech goods like Personal Digital Assistants. ||
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 16 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 16 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * 16 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **A)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || Income Statement. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **B)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || Statement of Retained Earnings. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **C)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || Balance Sheet. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **D)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || Statement of Cash Flows. ||
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 17 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 17 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * 17 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **A)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || The company should debit inventory for $200 and credit cost of goods sold for $200 ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **B)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || The company should debit revenue for $200 and credit inventory for $200 ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **C)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || The company should debit loss in inventory value for $200 and credit inventory for $200 ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **D)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || The company should debit inventory for $200 and credit cash for $200 ||
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 18 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 18 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * 18 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **A)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || during the period the company replaces its raw material inventory. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **B)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || the company buys and sells its inventory of goods. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **C)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || the company produces and delivers its inventory of goods to customers. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **D)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || All of the above combined. ||
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 19 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 19 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * 19 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || x || **A)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || 12.5 ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **B)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || 13.4 ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **C)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || 14.7 ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **D)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || 2.2 ||
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 20 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 20 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * 20 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **A)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || 12.5 days ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **B)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || 24.8 days ||
 * || x || **C)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || 29.2 days ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **D)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || 165.9 days ||
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 21 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 21 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * 21 || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **A)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || FIFO results in a lower net income than LIFO when costs are increasing. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **B)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || LIFO results in a higher net income than FIFO when costs are increasing. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **C)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || LIFO results in a higher net income than FIFO when costs are decreasing. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **D)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || LIFO results in the same net income as FIFO when costs are increasing. ||
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 22c || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="1"]] ||
 * 22c || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * 22c || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="5" height="1"]] |||| [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="1" height="5"]]
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **A)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || use of alternating inventory costing methods. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **B)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || failure to appropriately estimate the market value of inventory. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **C)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || failure to report stock issues appropriately. ||
 * || [[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="40" height="1"]] || **D)**[[image:https://paris.mcgraw-hill.com/olcweb/styles/shared/spacer.gif width="10" height="1"]] || incorrectly calculating the inventory turnover ratio. ||