FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Cost of goods sold is given by:
Select one:
a. Net Purchases + beginning inventory - ending inventory.
b. Net purchases + ending inventory - beginning inventory.
c. Beginning inventory + accounts payable - net purchases.
d. Beginning inventory - net purchases + ending inventory.
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- a. Added to other income. whether taken or not b. Added to other income, only if taken Deducted from inventory, whether taken or not d. Deducted from inventory, only if taken C. accounted for in the computation of cost of goods sold? a. Trade discounts applicable to purchases b. Cash discounts taken- c. Purchase returns and allowances d. Cost of transportation for merchandise purchased 3. The use of purchase discount account implies that the recorded cost of a purchased inventory is a. Invoice price b. Invoice price plus any purchase discount lost c. Invoice price less the purchase discount taken d. Invoice price less the purchase discount allowable whether taken or not 4. The use of a discount lost account implies that cost of a purchased inventory is a. Invoice price b. List price c. Invoice price less the purchase discount taken d. Invoice price less the purchase discount allowable whether or not taken 5. The valuation of inventory on a prime cost basis a. Would achieve the same…arrow_forward1. The journal entry to write inventory up to the net realizable value would be _______. a) a debit to COGS b) a credit to Losses c) a credit to Inventory d) a debit to Inventoryarrow_forwardSubject - account Please help me. Thankyou.arrow_forward
- 31. When determining gross profit, only the following items must be taken into consideration: A. Opening inventory, closing inventory, transport costs and purchases. B. Transport costs, opening inventory, receipts and payments, and purchases. C. Sales, opening inventory, purchases, transport costs and closing inventory. D. Sales, opening inventory, closing inventory, income and expensearrow_forwardWhich of the following is not a step in the retail inventory method process? a.Compute the cost of goods available for sale. b.Compute the ending inventory at retail by subtracting sales at retail from goods available for sale at retail. c.Estimate the cost of the ending inventory by multiplying the ending inventory at retail by the cost-to-retail ratio. d.Compute the cost-to-retail ratio.arrow_forwardThe inventory valuation method which assumes that the items purchased first are the first items to be sold is called the _____ method. average costLIFO specific identificationFIFOarrow_forward
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