Accounting Quiz #6.docx - Accounting Quiz#6 1 FIFO is the inventory costing method that follows the physical flow of the goods True 2 The selection of

Accounting Quiz #6.docx - Accounting Quiz#6 1 FIFO is the...

This preview shows page 1 - 2 out of 2 pages.

Accounting Quiz #6 1. FIFO is the inventory costing method that follows the physical flow of the goods. 2. The selection of an inventory costing method has no significant impact on the financial statements. 3. Which of the following companies would be more likely to use the specific identification inventory costing method? 4. Ending inventory is made up of the oldest purchases when a company uses 5. Inventory costing methods place primary emphasis on assumptions about 6. During periods of increasing costs, the use of the FIFO method of costing inventory will result in a greater amount of net income than would result from the use of the LIFO cost method. True 7. Addison, Inc. uses a perpetual inventory system. The following information is about one inventory item for the month of September:If Addison uses LIFO, the cost of the ending merchandise inventory on September 30 is: $750.00 8. Addison, Inc. uses a perpetual inventory system. The following information is about one inventory item for the month of September:
If Addison uses FIFO, the cost of the ending merchandise inventory on September 30 is: $800.00 9. If the perpetual inventory system is used, the account entitled Merchandise Inventory is debited for purchases of merchandise. True 10. Unsold consigned merchandise should be included in the consignee's inventory. False

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture