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ACG 3113 FINAL EXAM 2026 ACTUAL
QUESTIONS WITH VERIFIED
ANSWERS.
The amount of inventory purchased during a particular year is
accumulated in a Purchases account under a:
Periodic/Perpetual
A. Yes/No
B. Yes/Yes
C. No/Yes
D. No/No - ANSWER-A.
Valuation of inventories requires the determination of all of the
following except:
A. The costs to be included in inventory.
B. The physical goods to be included in inventory.
C. The cost of goods held on consignment from other
companies.
D. The cost flow assumption to be adopted. - ANSWER-C.
Goods in transit at the balance sheet date should be included in
the purchaser's inventory if they are shipped:
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F.O.B. Destination/F.O.B. Shipping Point
A. No/No
B. No/Yes
C. Yes/No
D. Yes/Yes - ANSWER-B.
The following items were included in Voigt Corporation's
inventory account at December 31, 2017:
Goods held on consignment by Voigt $ 7,000 Merchandise out
on consignment, at sales price, including 30% markup on
selling price 12,000
Goods purchased, in transit, shipped f.o.b. shipping point 9,000
Voigt's inventory account at December 31, 2017, should be
reduced by:
A. $10,600
B. $12,600
C. $16,000
D. $28,000 - ANSWER-A.
(12,000 * 0.3)+7,000
Costs which are inventoriable include all of the following
except:
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A. costs that are directly connected with the bringing of goods
to the place of business of the buyer.
B. costs that are directly connected with the converting of
goods to a salable condition.
C. buying costs of a purchasing department.
D. selling costs of a sales department. - ANSWER-D.
Which of the following interest costs should be capitalized?
Assets Constructed / Assets Produced as for Internal Use
Discrete Projects for Sale or Lease
A. Yes/Yes
B. Yes/No
C. No/Yes
D. No/No - ANSWER-A.
The use of a Purchase Discounts Lost account implies that the
recorded cost of a purchased inventory item is its:
A. invoice price.
B. invoice price plus the purchase discount price.
C. invoice price less the purchase discount allowable, when
taken.
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D. invoice price less the purchase discount allowable, whether
or not taken. - ANSWER-D.
Which of the following inventory methods comes closest to
stating ending inventory at replacement costs?
A. FIFO.
B. LIFO.
C. Weighted Average.
D. Base stock. - ANSWER-A.
The use of LIFO under a perpetual inventory system (units and
costs):
A. may yield a higher inventory valuation than LIFO under a
periodic inventory system when prices are steadily falling.
B. may yield a higher inventory valuation than LIFO under a
periodic inventory system when prices are steadily rising.
C. always yields the same inventory valuation as LIFO under a
periodic inventory system.
D. can never yield the same inventory valuation as LIFO under
a periodic inventory system. - ANSWER-B.
One argument against the use of the specific identification
inventory method is:
ACG 3113 FINAL EXAM 2026 ACTUAL
QUESTIONS WITH VERIFIED
ANSWERS.
The amount of inventory purchased during a particular year is
accumulated in a Purchases account under a:
Periodic/Perpetual
A. Yes/No
B. Yes/Yes
C. No/Yes
D. No/No - ANSWER-A.
Valuation of inventories requires the determination of all of the
following except:
A. The costs to be included in inventory.
B. The physical goods to be included in inventory.
C. The cost of goods held on consignment from other
companies.
D. The cost flow assumption to be adopted. - ANSWER-C.
Goods in transit at the balance sheet date should be included in
the purchaser's inventory if they are shipped:
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F.O.B. Destination/F.O.B. Shipping Point
A. No/No
B. No/Yes
C. Yes/No
D. Yes/Yes - ANSWER-B.
The following items were included in Voigt Corporation's
inventory account at December 31, 2017:
Goods held on consignment by Voigt $ 7,000 Merchandise out
on consignment, at sales price, including 30% markup on
selling price 12,000
Goods purchased, in transit, shipped f.o.b. shipping point 9,000
Voigt's inventory account at December 31, 2017, should be
reduced by:
A. $10,600
B. $12,600
C. $16,000
D. $28,000 - ANSWER-A.
(12,000 * 0.3)+7,000
Costs which are inventoriable include all of the following
except:
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A. costs that are directly connected with the bringing of goods
to the place of business of the buyer.
B. costs that are directly connected with the converting of
goods to a salable condition.
C. buying costs of a purchasing department.
D. selling costs of a sales department. - ANSWER-D.
Which of the following interest costs should be capitalized?
Assets Constructed / Assets Produced as for Internal Use
Discrete Projects for Sale or Lease
A. Yes/Yes
B. Yes/No
C. No/Yes
D. No/No - ANSWER-A.
The use of a Purchase Discounts Lost account implies that the
recorded cost of a purchased inventory item is its:
A. invoice price.
B. invoice price plus the purchase discount price.
C. invoice price less the purchase discount allowable, when
taken.
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D. invoice price less the purchase discount allowable, whether
or not taken. - ANSWER-D.
Which of the following inventory methods comes closest to
stating ending inventory at replacement costs?
A. FIFO.
B. LIFO.
C. Weighted Average.
D. Base stock. - ANSWER-A.
The use of LIFO under a perpetual inventory system (units and
costs):
A. may yield a higher inventory valuation than LIFO under a
periodic inventory system when prices are steadily falling.
B. may yield a higher inventory valuation than LIFO under a
periodic inventory system when prices are steadily rising.
C. always yields the same inventory valuation as LIFO under a
periodic inventory system.
D. can never yield the same inventory valuation as LIFO under
a periodic inventory system. - ANSWER-B.
One argument against the use of the specific identification
inventory method is:
