Quiz 8.27 – T/F Gross Profit Ratio
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
Gross profit divided by average inventory is equal to the gross profit ratio. True or false?
Gross profit divided by average inventory is equal to the gross profit ratio. True or false?
The risk of LIFO liquidations is eliminated by using dollar-value LIFO, true or false?
Similar inventory valuation methods with financial statements prepared according to the IFRS can be used in preparing the company’s statements under U.S. GAAP. True or false?
True or false, during transit inventory shipped f.o.b. shipping point remains in the seller’s accounting records.
The cost of purchases is debited to _____ in the perpetual inventory system.
The cost of purchases is debited to _____ in the periodic inventory system.
This points out the largest expense in a retailer’s income statement.
True or false, during transit inventory shipped f.o.b. destination is included in the seller’s inventory.
WARNING: This Mogul version has additional info on commission rate, shipped inventory, shipping cost, merch sold, shipping cost allocated, and advertising cost. There is another Mogul version with less information.
Your numbers will vary.
Purchases equal the invoice amount plus or minus…: