AC/113 AC113 AC 113 UNIT 7 QUIZ

 1.

Question :

Which inventory cost flow assumption would value ending inventory at more recent costs?

Student Answer:

 LIFO

 FIFO

 Average

 Specific Identification

Question 2.

Question :

When the first-in, first-out (FIFO) method is used to value inventory, cost of goods sold:

Student Answer:

 Is made up of the earliest costs

 Is made up of the most recent costs

 is made up of the average of earliest and most recent costs

 None of the above
 

Question 3.

Question :

Businesses that sell most of their goods or services for cash and accept only credit cards would use which method of accounting for uncollectible receivables?

Student Answer:

 The direct write-off

 The allowance method

 Either the direct write-off or the allowance method

 These businesses would not use any method as they have no bad debts

Question 4.

Question :

Accounts Receivable has a balance of $378,000 and the Allowance for Doubtful Accounts has a positive balance of $1,200 at fiscal year-end prior to adjustment. If the estimate based on the sales approach to estimating uncollectibles is $13,780, the amount of uncollectible accounts expense is __________.

Student Answer:

 $14,980

 $12,580

 $13,780

 $1,200

Question 5.

Question :

When the estimate based on the sales approach to estimating uncollectibles is used:

Student Answer:

 Any existing balance in the allowance for doubtful accounts is not taken into consideration

 Any existing balance in the allowance for doubtful accounts must be taken into consideration

 Only a credit balance in the allowance for doubtful accounts must be taken into consideration

 Only a debit balance in the allowance for doubtful accounts must be taken into consideration