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28 Cards in this Set
- Front
- Back
all of the following are inventory costing methods except:
first-in-first-out average cost periodic specific identification |
periodic
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which of the following is an inventory processing system?
perpetual last in last out lower of cost of market average cost |
perpetual
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the most important accounting problem in dealing with merchandise inventory is the applicaiton of which of the following conventions or rules
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matching
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an inventory valuation method
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lower of cost or market
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when applying the lower of cost or market rule the inventory valuation market generally means
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replacement cost
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goods held on consignment are
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never owned by the consignee
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in a period of declining prices, which of the following inventory methods generally results in the lowest balance sheet figure for inventory
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FIFO
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in a period or rising prices, which of the following inventory methods generally results in the lowest gross margin figure?
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LIFO
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Which of the following cases would the gross profit method most likely be used?
in a company with good accounting records in applying the averge cost method in estimating the market value of inventory for applicaiton of the lower or cost or market rule in estimating an inventory from loss of fire |
in estimating an inventory loss from fire
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when applying the retail method, which of the following would not be a component of the cost to retail percentage
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sales
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cash consists of all the following except
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IOU's from customers
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which of the following is not classified as a short-term financial asset
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equipment
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the sale or transfer of accounts receivable to raise funds is called
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factoring
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which of the following statements is true about factoring without recource
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an example is the use of a major credit card
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the most liquid of all assets is
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cash
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which of the following would not be considered cash?
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postage stamps
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customers accounts with credit balances should be disclosed as a
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current liability on the balance sheet
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which of the following would be deducted from the balance per books on a bank reconciliation?
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service charges
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which of the following would be added to the balance per books on the bank reconciliation?
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notes collected by the banks
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the accont allowance for uncollectible accounts is classified as a
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expense or contra account to accounts receivable
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which of the following most likely would be classified as a current liability
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dividends payable
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a liability is recongnized when
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an obligation has arisen
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current liabilities are debits that are expected to be satified within
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one year or te normal operating cycle, whichever is longer
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failure to record a liability probably will
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result in an overstated net income
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all of the following are estimated liabilities except
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payroll liability
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a contingent liability is recorded in the accountig records
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if it probably will become an actual liability and the amount can be reasonably estimated
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liabilities that might arise from which of the following probably would be disclosed only in the notes to the financial statements
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possible warranty claims
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which of the following is a contingent liability
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disputed additional tax assessment
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