Quiz 8 ch9 inventory Key

Quiz 8 ch9 inventory Key - b. matches the flow of recorded...

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Quiz 8 (ch9 Inventory) Key 1. If the replacement cost of a unit of inventory has declined below original cost, but the replacement cost exceeds net realizable value, the amount to be used for purposes of inventory valuation is a. net realizable value. b. original cost. c. market value. d. net realizable value less a normal profit margin. 2. Under IAS accounting principles, the lower-of-cost-or-market rule for assigning a value to inventory can NOT be assigned to a. total inventory. b. groups of similar inventory items. c. individual inventory items. d. All of the above are allowed. 3. The specific identification method of inventory costing a. eliminates all opportunity for profit manipulation.
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Unformatted text preview: b. matches the flow of recorded costs with the physical flow of goods. c. can be used only with a perpetual inventory system. d. is a violation of generally accepted accounting principles. 4. In a period of rising prices, the inventory cost allocation method that tends to result in the lowest reported net income is a. LIFO. b. FIFO. c. moving average. d. weighted average. 5. Which of the following inventory costing methods reports most closely the current cost of inventory on the balance sheet? a. FIFO b. Specific identification c. Weighted average d. LIFO...
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This note was uploaded on 12/07/2009 for the course ACCT ACCT 203 taught by Professor Kim during the Fall '09 term at HKUST.

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