Chapter 8 - Multiple Choice, Question 36 Your answer has...

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Unformatted text preview: Multiple Choice, Question 36 Your answer has been saved and sent for grading. See Gradebook for score details. During 2010 Carne Corporation transferred inventory to Nolan Corporation and agreed to repurchase the merchandise early in 2011. Nolan then used the inventory as collateral to borrow from Norwalk Bank, remitting the proceeds to Carne. In 2011 when Carne repurchased the inventory, Nolan used the proceeds to repay its bank loan. On whose books should the cost of the inventory appear at the December 31, 2010 balance sheet date? Nolan Corporation, with Carne making appropriate note disclosure of the transaction Carne Corporation Nolan Corporation Norwalk Bank Multiple Choice, Question 40 Your answer has been saved and sent for grading. See Gradebook for score details. If the beginning inventory for 2010 is overstated, the effects of this error on cost of goods sold for 2010, net income for 2010, and assets at December 31, 2011, respectively, are understatement, overstatement, no effect. overstatement, understatement, no effect. overstatement, understatement, overstatement. understatement, overstatement, overstatement Multiple Choice, Question 56 Your answer has been saved and sent for grading. See Gradebook for score details. During 2010, which was the first year of operations, Oswald Company had merchandise purchases of $985,000 before cash discounts. All purchases were made on terms of 2/10, n/30. Three-fourths of the items purchased were paid for within 10 days of purchase. All of the goods available had been sold at year end. Which of the following recording procedures would result in the highest cost of goods sold for 2010? 1. Recording purchases at gross amounts 2. Recording purchases at net amounts, with the amount of discounts not taken shown under "other expenses" in the income statement Cannot be determined from the information provided. 2 Either 1 or 2 will result in the same cost of goods sold. 1 Multiple Choice, Question 61 Your answer has been saved and sent for grading. See Gradebook for score details. In situations where there is a rapid turnover, an inventory method which produces a balance sheet valuation similar to the first-in, first-out method is joint cost. base stock. prime cost. average cost. Multiple Choice, Question 64 Your answer has been saved and sent for grading. See Gradebook for score details. Which method of inventory pricing best approximates specific identification of the actual flow of costs and units in most manufacturing situations?...
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This note was uploaded on 07/27/2011 for the course ACCT 304 taught by Professor Hendren during the Summer '08 term at Strayer.

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Chapter 8 - Multiple Choice, Question 36 Your answer has...

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