Question Details

Culver Company purchases the majority of its inventory 


1.	Which of the following inventories carried by a manufacturer is similar to the merchandise inventory of a retailer?
a.	Raw materials.
b.	Work-in-process.
c.	Finished goods.
d.	Supplies.

	2.	Where should raw materials be classified on the statement of financial position?
a.	Prepaid expenses.
b.	Inventory.
c.	Equipment.
d.	Not on the statement of financial position.

	3.	Which of the following accounts is not reported in inventory?
a.	Raw materials.
b.	Equipment.
c.	Finished goods.
d.	Supplies.

	4.	Computers For You is a retailer specializing in selling computers and related equipment. Which of the following would not be reported in the merchandise inventory account reported on the statement of financial position for Computers For You at December 31, 2011?
a.	Computer purchased for resale during November 2011.
b.	Shelving materials purchased during December 2011.
c.	Freight costs related to the computers purchased in November.
d.	All of the choices are included in the merchandise inventory account at December 31, 2011.

	5.	Culver Company purchases the majority of its inventory from three primary suppliers for re-sale to customers around the world. Culver Company- statement of financial position will include
a.	Finished goods inventory.
b.	Work-in-process inventory.
c.	Merchandise inventory.
d.	All of the choices are correct.




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