ACC 380 1-5 Quiz Chapter 9

1)

In applying LCM, market cannot be:

Less than net realizable value.

Greater than the normal profit.

Less than the normal profit margin.

Greater than net realizable value.

2)

Under the conventional retail method, the denominator in the cost-to-retail percentage includes:

Net markups and net markdowns.

Neither net markups nor net markdowns.

Net markups, but not net markdowns.

Net markdowns, but not net markups.

3)

Under the LIFO retail method, the denominator in the cost-to-retail percentage includes:

Net markups and net markdowns.

Neither net markups nor net markdowns.

Net markups, but not net markdowns.

Net markdowns, but not net markups.

4)

Under the retail method, the denominator in the cost-to-retail percentage does not include:

Purchases.

Purchase returns.

Abnormal shortages.

Freight-in.

5)

Under the retail inventory method:

A company measures inventory on its balance sheet by converting retail prices to cost.

A company measures inventory on its balance sheet at current selling prices.

A company measures inventory on its balance sheet on a LIFO basis.

None of the above is correct.

6)

Under the retail method, in determining the cost-to-retail percentage for the current year:

Net markups are included.

Net markdowns are excluded.

Net sales are included.

All of the above are correct.

7)

When computing the cost-to-retail percentage for the average cost retail method, included in the denominator are:

Net markups and net markdowns.

Neither net markups nor net markdowns.

Net markups, but not net markdowns.

Net markdowns, but not net markups.

8)

The first step, when using dollar-value LIFO retail method for inventory, is to:

rev: 06_10_2014_QC_50265

Determine the estimated ending inventory at current year retail prices.

Determine the estimated cost of goods sold for the current year.

Determine the cost-to-retail percentage for the current year transactions.

Price index adjust the LIFO inventory layers.

9)

The second step, when using dollar-value LIFO retail method for inventory, is to determine the estimated:

rev: 06_10_2014_QC_50265

Ending inventory at current year retail prices.

Cost of goods sold for the current year.

Ending inventory at cost.

Cost-to-retail percentage is applied to retail layer.

10)

Retrospective treatment of prior years' financial statements is required when there is a change from:

rev: 11_23_2013_QC_40821

Average cost to FIFO.

FIFO to average cost.

LIFO to average cost.

All of the above.

11)

 

12)

 

 

 

 

 

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file 1498220347-ACC 380 1-5 Quiz Chapter 9.docx preview (468 words )

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