Intermediate Accounting exam questions and verified correct answers

Inventory is a current asset a. true b. false - correct answer a. true Manufacturing inventory includes: a. Raw Materials b. Work in Process c. Finished Goods d. all of the above - correct answer d. all of the above the Work in process & the finished goods have 3 cost components a. raw materials b. direct labor c. overhead cost to support production d. all of the above - correct answer d. all of the above valuation inventories is usually at cost a. true b. false - correct answer a. true inventory cost includes the following: a. invoice price less purchase discounts b. freight-in, including insurance in transit c. applicable taxes & tariffs d. all of the above - correct answer d. all the above merchandise-in-transit takes into consideration shipping terns for inventory valuation a. true b. false - correct answer a. true