Teatable MC Ch7 10 Revised 2013

2110 Words Nov 18th, 2014 9 Pages
Chapter 7 Inventories

6. Ending inventory is made up of the oldest purchases when a company uses
a.
first-in, first-out
b.
last-in, first-out
c.
average cost
d.
retail method
11. The inventory method that assigns the most recent costs to cost of goods sold is
a.
FIFO
b.
LIFO
c.
Average
d.
specific identification 12. Inventory costing methods place primary emphasis on assumptions about
a.
flow of goods
b.
flow of costs
c.
flow of goods or flow of costs depending on the method
d.
neither flow or goods or flow of costs 13. The inventory costing method that reports the most current prices in ending inventory is
a.
FIFO
b.
Specific identification
c.
LIFO
d.
Average cost

The following lots of a particular commodity were available for
…show more content…
a. debit Sales; credit Cash
b.
debit Cash; credit Accounts Receivable
c.
debit Cash; credit Sales
d.
debit Accounts Receivable; credit Cash

43. Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the company. This item is a(n)
a.
deduction from the balance per company's records
b.
addition to the balance per bank statement
c.
deduction from the balance per bank statement
d.
addition to the balance per company's records

47. Which of the following items that appeared on the bank reconciliation did not require an adjusting entry?
a.
bank service charges
b.
deposits in transit
c.
NSF checks
d.
A check for $630, recorded in the check register for $360.

48. What entry is required in the company's accounts to record outstanding checks?
a.
debit Accounts Receivable; credit Cash
b.
debit Cash; credit Accounts Receivable
c.
debit Cash; credit Accounts Payable
d.
none

49. Accompanying the bank statement was a debit memo for an NSF check received from a customer. This item would be included on the bank reconciliation as a(n)
a.
deduction from the balance per company's records
b.
addition to the balance per bank statement
c.
deduction from the balance per bank statement
d.
addition to the balance per company's records
55. Which of the following would be subtracted from the balance per bank on a bank reconciliation?
a.
Outstanding checks
b.
Deposits in transit
c.
Notes collected
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