ACC 310 Midterm Exam 2 | Arizona State University

Question 1 pts


Goods in transit which are shipped f.o.b. shipping point should be ___________




Correct! included in the inventory of the buyer.


included in the inventory of the shipping company.


included in the inventory of the seller.



included in the inventory of the buyer or the seller, depending on what type of
inventory system each uses.




Question 2 pts


Which inventory costing method most closely approximates current cost for each of
the following:
Ending Inventory Cost of Goods Sold
FIFO FIFO
FIFO LIFO
LIFO FIFO
LIFO LIFO


Correct! FIFO - LIFO


FIFO - FIFO


LIFO - LIFO


LIFO - FIFO




Question 3 pts


Which of the following is a characteristic of a perpetual inventory system?

, Question 4 pts


In a period of rising prices, the inventory method which tends to give the highest
reported net income is ___________________


Correct! first-in, first-out.


weighted-average.


last-in, first-out.


base stock.




Question 5 pts


The designated market value




will always equal net realizable value.


may sometimes exceed net realizable value

Correct!
is always the middle value of replacement cost, net realizable value, and net realizable
value less a normal profit margin.



will always equal net realizable value less a normal profit margin.




Question 6 pts


Net realizable value is