quiz6 w-answers - 1. When the terms of a sale are FOB...

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Unformatted text preview: 1. When the terms of a sale are FOB destination, legal title to the goods passes to the buyer when they reach the buyer's place of business. True Fals e Score: 1 of 1 2. Merchandising firms usually classify their inventory into raw materials, work in process and finished goods. True Fals e Score: 1 of 1 3. Under FIFO, cost of goods sold consists of the units with the oldest costs. True Fals e Score: 1 of 1 4. In a period of inflation, LIFO produces a higher net income than FIFO. True Fals e Score: 1 of 1 5. The days in inventory is calculated by dividing the inventory turnover ratio by 365. True Fals e Score: 1 of 1 6. If Inventory in 2006 is $30,000 and 2007 is $40,000 and Cost of Goods Sold is $276,000 and $290,000 respectively, the Inventory Turnover Ratio for 2007 is 8.3 times. True Fals e Score: 0 of 1 7. Which of the following is not an inventory account? Raw Materials Work in Process Finished Goods Equipment Score: 1 of 1 8. Which of the following is not a legitimate business reason for taking a physical inventory? To keep the employees busy during a slow time in the business To determine cost of goods sold To determine if any inventory has been lost from waste, shoplifting or employee theft To check the accuracy of the perpetual inventory records. Score: 1 of 1 9. Ownership passes to the buyer when the goods are received from the public carrier if the goods are shipped: FOB shipping point. FOB buyer. FOB shipper. FOB destination. Score: 1 of 1 10. Ownership passes to the buyer when the public carrier accepts the goods if the goods are shipped: FOB shipping point FOB buyer FOB shipper FOB destination Score: 1 of 1 11....
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This note was uploaded on 10/19/2011 for the course ACCOUNTING 102 taught by Professor Singh during the Spring '11 term at Wayne State University.

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quiz6 w-answers - 1. When the terms of a sale are FOB...

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