Quiz – Inventory Methods
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
When costs are rising and inventory is stable, which inventory method would result in the highest ending inventory:
When costs are rising and inventory is stable, which inventory method would result in the highest ending inventory:
Which of the following statements is true regarding FIFO and LIFO with respects to taxable income?
When using a periodic inventory system, the cost of inventory sold is (recorded, not recorded):
In perpetual inventory system, which of following is recorded at time of the sale?
When using a perpetual inventory system, the cost of inventory sold (debit/credit):
Under the gross method of accounting for purchases, purchase discounts taken:
Which statement accurately reflects the correctness of the reported ending inventory using the periodic average cost method?
Is the reported cost of goods sold, calculated as $3,120,000 using the periodic FIFO method, correct?
In light of the given inventory data, and the accountant’s claim that reporting with LIFO instead of FIFO will result in lower gross profit for 2021, which statement is accurate?
True or false, physical counts of inventory are not associated with perpetual inventory systems?