Quiz 09.139 – Terms and Phrases
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
Match each phrase with its corresponding terminology, dollar-value LIFO retail, cost-to-retail percentage, etc…
Match each phrase with its corresponding terminology, dollar-value LIFO retail, cost-to-retail percentage, etc…
For each of the following inventory errors that were noted in 2021 and not discovered until 2022, indicate the effect, if any, on the accounts noted in the columns using the code U for Understated, O for Overstated, and NE for No Effect.
Given the company’s LIFO retail method and the provided data, which statement about the calculation of the cost-to-retail percentage for ending inventory conversion is correct?
In computing the cost-to-retail percentage for the average cost retail method, what items are included in the denominator?
What cost method is the conventional retail inventory method based on?
In the retail method, which items are excluded from the denominator of the cost-to-retail conversion percentage?
The company reports ending inventory in the balance sheet as $200,000 ($150,000 + $800,000 – $750,000). Which of the following statements regarding the calculation of ending inventory is correct?
True or false, inventory is valued at the lower of cost or net realizable value if FIFO or average cost is used.
Net income is reduced if the market value reported is falling below cost. True or false?
True or false, the relationship between sales revenue and cost of goods sold covers estimating ending inventory if the gross profit method is used.