AC201SecondHourExamCWA

Merchandise inventory a is a long term asset b is a

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5. Merchandise inventory: A) Is a long-term asset. B) Is a current asset. C) Includes supplies. D) Is classified with investments on the balance sheet. E) Must be sold within one month. 6. The current period's ending inventory is:
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7. The credit terms 2/10, n/30 are interpreted as: 8. Merchandise inventory includes: 9. Physical counts of inventory: A) Are not necessary under the perpetual system. B) Are necessary to measure and adjust for inventory shrinkage. C) Must be taken at least once a month. D) Requires the use of hand-held portable computers. E) Are not necessary under the cost-to benefit constraint. Page 3
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10. A company had inventory of 5 units at a cost of $20 each on November 1. On November 2, they purchased 10 units at $22 each. On November 6 they purchased 6 units at $25 each. On November 8, they sold 18 units for $54 each. Using the LIFO perpetual inventory method, what was the cost of the 18 units sold?
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Problem #1 ( 25 points ) The summary amounts below appear in the Income Statement and Balance Sheet columns of a company's December 31 work sheet. Prepare the necessary closing entries.
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  • Summer '10
  • TracyEdmond
  • Accounting, $20, $25, $410, $450, $395

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