Accounting

Accounting

Question: The lower of cost or market basis may be applied to:
A
categories of inventories.

B
individual items of inventories

C
total inventory.

D
all

Note: Not available
1. Report
Question: Titan A.E Company's ending inventory is understated $4,000. The effects of this error on the current year's cost of goods sold and net income, respectively, are:
A
understated, overstated.

B
overstated, understated.

C
overstated, overstated.

D
understated, understated.

Note: Not available
1. Report
Question: Which of these would cause the inventory turnover ratio to increase the most?
A
Increasing the amount of inventory on hand.

B
Keeping the amount of inventory on hand constant but increasing sales.

C
Keeping the amount of inventory on hand constant but decreasing sales.

D
Decreasing the amount of inventory on hand and increasing sales.

Note: Not available
1. Report
Question: Butterfly Company has sales of $150,000 and cost of goods available for sale of $135,000. If the gross profit rate is 30%, the estimated cost of the ending inventory under the gross profit method is:
A
$15,000

B
$30,000

C
$45,000

D
$75,000

Note: Not available
1. Report
Question: In a perpetual inventory system,
A
LIFO cost of goods sold will be the same as in a periodic inventory system.

B
average costs are based entirely on unit cost averages.

C
a new average is computed under the average cost method after each sale.

D
FIFO cost of goods sold will be the same as in a periodic inventory system.

Note: Not available
1. Report
Question: The basic principles of an accounting information system include all of the following except:
A
cost effectiveness

B
flexibility

C
useful output

D
periodicity

Note: Not available
1. Report
Question: Which of the following is not a major phase in the development of an accounting information system?
A
Design

B
Responsiveness

C
Implementation

D
Follow-up

Note: Not available
1. Report
Question: Which of the following is incorrect concerning subsidiary ledgers?
A
The purchases ledger is a common subsidiary ledger for creditor accounts.

B
The accounts receivable ledger is a subsidiary ledger.

C
A subsidiary ledger is a group of accounts with a common characteristic.

D
An advantage of the subsidiary ledger is that it permits a division of labor in posting.

Note: Not available
1. Report
Question: A sales journal will be used for: Credit Cash Sales Sales Sales Discounts
A
no yes yes

B
yes no yes

C
yes no no

D
yes yes no

Note: Not available
1. Report
Question: Which of the following statement is correct?
A
The sales discount column is included in the cash receipts journal.

B
The purchase journal records all purchases of merchandise whether for cash or on account.

C
The cash receipts journal records sales on account.

D
Merchandise returned by the buyer is recorded by the seller in the purchases journal.

Note: Not available
1. Report

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Question: The lower of cost or market basis may be applied to:

Question: Titan A.E Company's ending inventory is understated $4,000. The effects of this error on the current year's cost of goods sold and net income, respectively, are:

Question: Which of these would cause the inventory turnover ratio to increase the most?

Question: Butterfly Company has sales of $150,000 and cost of goods available for sale of $135,000. If the gross profit rate is 30%, the estimated cost of the ending inventory under the gross profit method is:

Question: In a perpetual inventory system,

Question: The basic principles of an accounting information system include all of the following except:

Question: Which of the following is not a major phase in the development of an accounting information system?

Question: Which of the following is incorrect concerning subsidiary ledgers?

Question: A sales journal will be used for: Credit Cash Sales Sales Sales Discounts

Question: Which of the following statement is correct?