Inventory Valuation MCQs



MCQs 1-10

1. What does FIFO mean?

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

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

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4. An increase in inventories indicates that?

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

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

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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?

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

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

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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?

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12. In LIFO method of inventory valuation?

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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?

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14. Inventory does not include?

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15. Net Purchases equal the invoice amount and?

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16. In FIFO method of inventory valuation?

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

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

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19. Sales revenues are usually considered earned when?

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

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Inventory Valuation (11-20)
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