ch09 - CHAPTER 9 INVENTORIES: ADDITIONAL VALUATION ISSUES...

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CHAPTER 9 INVENTORIES: ADDITIONAL VALUATION ISSUES MULTIPLE CHOICE —Conceptual Answer No. Description d 1. Knowledge of lower of cost or market valuations. d 2. Appropriate use of LCM valuation. c 3. Definition of "market" under LCM. b 4. Definition of "ceiling." a 5. Definition of "designated market value." c 6. Application of lower of cost or market valuation. d 7. Effect of inventory write-down. b 8. Net realizable value under LCM. d 9. Definition of "net realizable value." a 10. Valuation of inventory at net realizable value. d 11. Appropriate use of net realizable value. a 12. Material purchase commitments. a 13. Loss recognition on purchase commitments. d 14. Appropriate use of the gross profit method. b 15. Appropriate use of the gross profit method. d 16. Advantage of retail inventory method. c 17. Conventional retail inventory method. a 18. Assumptions of the retail inventory method. d 19. Appropriate use of the retail inventory method. b 20. Markdowns and the conventional retail method. a 21. Markups and the conventional retail method. b *22. Knowledge of the cost ratio for retail inventory methods. c 23. Inventory turnover ratio. c *24. Dollar-value LIFO retail method. MULTIPLE CHOICE —Computational Answer No. Description a 25. Value inventory at LCM. c 26. Relative sales method of inventory valuation. c 27. Entry for purchase commitment loss. d 28. Calculate cost of goods sold given a markup on cost. d 29. Calculate merchandise purchases given a markup on cost. a 30. Calculate total sales from cost information. a 31. Markup on cost equivalent to a markup on selling price. b 32. Estimate ending inventory using gross profit method. c 33. Calculate ending inventory using gross profit method *This topic is dealt with in an Appendix to the chapter.
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Test Bank for Intermediate Accounting, Eleventh Edition MULTIPLE CHOICE—Computational (cont.) Answer No. Description . b 34. Calculate ending inventory using gross profit method. a 35. Estimate cost of inventory destroyed by fire. a 36. Determine items to be included in inventory. b 37. Calculate cost of retail ratio to approximate LCM. b 38. Calculate ending inventory at retail. a 39. Calculate cost to retail ratio approximating LCM. b 40. Calculate cost of inventory lost using retail method. b *41. Calculate ending inventory at cost using LIFO retail. c *42. Determine cost to retail ratio using LIFO retail. b 43. Calculate inventory turnover ratio. d 44. Determine cost to retail ratio to approximate LCM. c *45. Determine cost to retail ratio using LIFO cost. d 46. Calculate ending inventory at retail. a 47. Calculate ending inventory using conventional retail. a *48. Calculate ending inventory cost using dollar-value LIFO. b
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ch09 - CHAPTER 9 INVENTORIES: ADDITIONAL VALUATION ISSUES...

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