51.If the market value of inventory is greater than its cost, then the application of the lower-of-cost-or-market rule would:
a.decrease both the current ratio and net income.
b.decrease the current ratio but not change net income.
c.not change the current ratio but decrease net income.
d.change neither the current ratio nor net income.
52.During a period of rising prices and inventories, which method causes cash flows to be stronger?
a.FIFO
b.LIFO
c.Averaging
d.The company would be indifferent as to which cost flow assumption is adopted.
53.Which of the following should not be included in inventory cost for a car dealership?
a.The costs of transporting the cars from the factory to the dealership
b.Cost of new car preparation for customers
c.The salary and commission of the salesman who sells the vehicle
d.The cost of adding a CD player to the vehicles before the vehicle is offered for sale
54.If the market value of inventory is less than its cost, then application of the lower-of-cost-or-market rule would:
a.increase earnings and decrease the current ratio.
b.decrease earnings and increase the current ratio.
c.decrease earnings and decrease the current ratio.
d.cause no change to earnings or the current ratio.
55.What is the impact on the financial statements of an overstatement of ending inventory?
a.Next year’s ending inventory will be overstated.
b.Next year’s net income will be overstated.
c.Current year’s net income will be overstated.
d.Next year’s ending inventory will be understated.
56.The following information comes from the annual reports of Devin Designs.
2017
2016
2015
Beginning inventory
?
?
2,250
Purchases
12,652
?
?
Goods available for sale
?
?
12,899
Ending inventory
?
2,662
?
Cost of goods sold
12,213
10,908
10,490
What is the Purchases amount for 2015?
a.$4,713
b.$2,397
c.$81
d.$10,649
57.The following information comes from the annual reports of Devin Designs.
2017
2016
2015
Beginning inventory
?
?
2,250
Purchases
12,652
?
?
Goods available for sale
?
?
12,899
Ending inventory
?
2,662
?
Cost of goods sold
12,213
10,908
10,490
What is the ending inventory amount for 2015?
a.$4,713
b.$2,409
c.$81
d.$10,583
58.The following information comes from the annual reports of Devin Designs.
2017
2016
2015
Beginning inventory
?
?
2,250
Purchases
12,652
?
?
Goods available for sale
?
?
12,899
Ending inventory
?
2,662
?
Cost of goods sold
12,213
10,908
10,490
What is the beginning inventory amount for 2016?
a.$2,409
b.$13,570
c.$10,502
d.$8,246
59.The following information comes from the annual reports of Devin Designs.
2017
2016
2015
Beginning inventory
?
?
2,250
Purchases
12,652
?
?
Goods available for sale
?
?
12,899
Ending inventory
?
2,662
?
Cost of goods sold
12,213
10,908
10,490
What is the amount of purchases for 2016?
a.$8,246
b.$11,161
c.$13,570
d.$10,643
60.The following information comes from the annual reports of Devin Designs.
2017
2016
2015
Beginning inventory
?
?
2,250
Purchases
12,652
?
?
Goods available for sale
?
?
12,899
Ending inventory
?
2,662
?
Cost of goods sold
12,213
10,908
10,490
What is the amount of goods available for sale for 2016?
a.$8,246
b.$11,173
c.$13,570
d.$10,643
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more