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8 - CHAPTER 8 VALUATION OF INVENTORIES A COST-BASIS...

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CHAPTER 8 VALUATION OF INVENTORIES: A COST-BASIS APPROACH TRUE-FALSE —Conceptual Answer No. Description T 1. Work-in-process inventory. F 2. Merchandising and manufacturing inventory accounts. F 3. Perpetual inventory system. F 4. Determining when title passes. T 5. Inventory errors. T 6. Overstatement of purchases and ending inventory. F 7. Period vs. product costs. T 8. Reporting Purchase Discounts Lost. F 9. Cost flow assumption. T 10. FIFO periodic vs. perpetual system. T 11. Purchase commitments. F 12. Using LIFO for reporting purposes. F 13. LIFO liquidation. T 14. LIFO liquidations. T 15. Dollar-value LIFO F 16. Dollar-value LIFO method. F 17. LIFO-FIFO comparison. T 18. LIFO conformity rule. F 19. Selection of inventory method. T 20. Appropriateness of LIFO. MULTIPLE CHOICE —Conceptual Answer No. Description d 21. Entries under perpetual inventory system. b 22. Classification of goods in transit. a 23. Classification of goods in transit. d 24. Identify inventory ownership. d 25. Identify a product financing arrangement. a 26. Identify ownership under product financing arrangement. b 27. Classification of goods on consignment. c S 28. Valuation of inventories. b P 29. Classification of beginning inventory. b P 30. Effect of beginning inventory overstated. d S 31. Effect of understating purchases. b 32. Effect of recording merchandise on consignment. a 33. Effect of ending inventory overvaluation. a 34. Effect of inventory errors on income. d 35. Effect of understating purchases and ending inventory.
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Test Bank for Intermediate Accounting, Twelfth Edition 8 - 2 MULTIPLE CHOICE —Conceptual (cont.) Answer No. Description b 36. Identification of prod