Card Set Information
Which of the following accounts would not appear as an asset on a manufacturer's balance sheet?
Which of the following companies would be most likely to use a computerize pepetual inventory system?
Auto parts store
The periodic inventory system is used most commonly by compaies that sell
low-priced, high-volume merchandise
Which of the following activities is not a component of the operation cycle
payment of employees' wages
The operating cycle involves the purchase and sale of merchandise inventory as well as the subsequent collection of cash from credit sales
The portion of the cost of goods available for sale that is not assigned to ending inventory is assigned to cost of goods sold
the determination of the balance sheet cost of merchandise inventory is important to the determination of net income
Despite its advantages, the just-in-time operating environment produces increase carrying cost for inventory
Inventory is an example of a long-term asset
A sale takes place when title to the goods transfers to the buyer
Profitability management involves planning a business's cash receipts and cash payments
Service businesses can be classified as wholesalers and retailers.
An understatement of year 1's beginning inventory will
cause year 1's cost of goods sold to be understated
An overstatement of beginning inventory results in
an understatement of gross margin
The FIFO inventory method produces the most up-to-date figure for ending inventory
The higher the inventory turnover, the higher the days' inventory on hand
An overstatement of ending inventory in one period results in
an understatement of gross margin of the next period
The most important accounting problem in dealing with merchandise inventory is the application of which of the following conventions or rules?
Each of the following companies is merchandising business except a
Which of the following doe snot represent a sale?
Merchandise placed aside for or customer who plans to come in next week and pay with cash