Chapter 8 - Chapter 8 1 Which of the following would not be...

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Chapter 8 1. Which of the following would not be included in a manufacturing company's balance sheet? A. Finished goods inventory. B. Merchandise inventory. C. Raw materials inventory. D. Work in process inventory. 2. All of the following accounts are used under a perpetual inventory system except: A. Cost of Goods Sold. B. Inventory. C. Purchase Discounts. D. Sales. 3. The buyer would report the inventory in its balance sheet for items: A. received on consignment. B. shipped f.o.b. destination and in transit. C. purchased with a buyback agreement. D. purchased on installment. 4. If the beginning inventory is understated: A. the current ratio is understated. B. cost of goods sold is overstated. C. net income is overstated. D. working capital is overstated. 5. Freight charges on goods purchased are accounted for as: A. manufacturing costs. B. product costs. C. period costs. D. variable costs. 6. An inventory method that makes it possible to manipulate net income is the: A. average cost method. B. FIFO method. C. LIFO method. D. specific identification method. 7. The ending inventory and cost of goods sold will be the same whether a perpetual or periodic system is used under the: A. weighted-average method. B. moving-average method. C. LIFO method. D. FIFO method. 8. In a period of rising prices, the inventory method that produces the lowest ending inventory is the: A. average cost method. B. FIFO perpetual method. C. LIFO periodic method. D. LIFO perpetual method.
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9. The change in the Allowance to Reduce Inventory to LIFO balance from one period to the next is called the LIFO A. Allowance. B. Effect. C. Reduction. D. Reserve.
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Chapter 8 - Chapter 8 1 Which of the following would not be...

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