Learningobjective0801inaperpetualinventorysystem

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Unformatted text preview: action. The purpose of these entries is best described as follows: One entry recognizes the sales revenue and the other recognizes the cost of goods sold. One entry records the purchase of merchandise and the other records the sale. One entry records the cost of goods sold and the other reduces the balance in the Inventory account. One entry updates the subsidiary ledger and the other updates the general ledger. Multiple Choice 9. Learning Objective: 08­01 In a perpetual inventory system; determine the cost of goods sold using (a) specific identification; (b) average cost; (c) FIFO; and (d) LIFO. Discuss the advantages and shortcomings of each method. awar d: 5 out of 5.00 points Which of the four inventory cost flow assumptions is best suited to inventories of high­priced, low­volume items? LIFO. FIFO. Average. Specific identification. Multiple Choice 10. Learning Objective: 08­01 In a perpetual inventory system; determine the cost of goods sold using (a) specific identification; (b) average cost; (c) FIFO; and (d) LIFO. Discuss the advantages and shortcomings of each method. awar d: 5 out of 5.00 points In a periodic inventory system, recording a sale on account involves debiting which of the following accounts? Only Accounts Receivable. Accounts Receivable and Inventory. Accounts Receivable and Cost of Goods Sold. Accounts Receivable, Cost of Goods Sold, and Inventory. Multiple Choice Learning Objective: 08­04 In a periodic inventory system; determine the ending inventory and the cost of goods sold using (a) specific identification; (b) average cost; (c) FIFO; and (d) LIFO. e z to.mhe c loud.mc gr a w- hill.c om/hm_a c c ounting.tpx? todo= pr intvie w 2/7 11/18/13 11. Assignme nt Pr int Vie w awar d: 5 out of 5.00 points In a perpetual inventory system, an inventory flow assumption is used primarily for determining which costs to use in: Recording purchases of inventory. Recording the cost of goods sold. Recording sales revenue. Forecasts of future operating results. Learning Objective: 08­01 In a perpetual inventory system; determine the cost of goods sold using (a) specific identification; (b) average cost; (c) FIFO; and (d) LIFO. Discuss the advantages and shortcomings of each method. Multiple Choice 12. awar d: 5 out of 5.00 points Which of the four inventory cost flow assumptions transfers the most recent purchase cost to the cost of goods sold and the remaining items in inventory are valued at the oldest acquisition costs? LIFO. FIFO. Average. Specific identification. Learning Objective: 08­01 In a perpetual inventory system; determine the cost of goods sold using (a) specific identification; (b) average cost; (c) FIFO; and (d) LIFO. Discuss the advantages and shortcomings of each method. Multiple Choice 13. awar d: 30 out of 30.00 points On J anuary 15, 2011, Bas s Trac k s old 1,000 Ac e­5 fis hing reels to Angler's Warehous e. Immediately prior to this s ale, Bas s Trac k 's perpetual inv entory rec ords fo...
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