Inventory Valuation MCQs


MCQs 1-10

1. What does FIFO mean?

2. Regardless of how long it takes to produce and sell inventory, inventory is always considered to be a?

3. The latest cost of inventories is changed to production but the old prices are changed to inventories on hand?

4. An increase in inventories indicates that?

5. Which type of inventory system is updated inventory system?

6. What is the principal criterion used to distinguish between tangible assets and inventories?

7. Which of the following method is suitable for calculating the cost of inventory when actual costs of individual units of merchandise can be determined from the accounting records?

8. The inventories are recorded at the latest price but the production cost is changed old cost price?

9. Which one of the following methods for inventory valuation may be misleading when the units are identical?

10. During September, Khan had sales of 148,000, which made a gross profit of 40,000. Purchases amounted to 100,000 and opening inventory was 34,000. The value of closing inventory was?

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MCQs 11-20

11. Which type of inventory system requires updating the inventory balance at the end of the accounting period?

12. In LIFO method of inventory valuation?

13. The inventory method that will always produce the same amount for cost of goods sold in a periodic inventory system as in a perpetual inventory system would be?

14. Inventory does not include?

15. Net Purchases equal the invoice amount and?

16. In FIFO method of inventory valuation?

17. The average inventory costing method which results in a changed unit inventory cost after each successive purchase?

18. The specific cost identification inventory cost flow method has all of the following characteristics except?

19. Sales revenues are usually considered earned when?

20. A retail firm would normally use an inventory account titled?

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