Problem 10-34 Multiple choice (IAA)2. Which is a characteristic of a perpetual inventory system?d. Inventory does not affect net incomeb. Inventory records are not kept for every item.To determine cost of goods soldInventory purchases are debited to a purchases account.To determine merchandise returnsd. Goods available for sale minus cost of goods soldWhy is inventory included in the computation of net income?1.а.To determine sales revenueb.C.Inventory purchases are debited to a purchases account.a.с.Cost of goods sold is recorded with each sale.: Cost, of goods sold is determined as the amount ofpurchases less the change in inventory., Which is incorrect about the perpetual inventory method?. Purchases are recorded as debit to the inventory account.b. The entry to record a sale includes a debit to cost ofgoods sold and a credit to inventory.c. After a physical inventory count, inventory is creditedfor any missing inventory.d. Purchase returns are recorded by debiting accountspayable and crediting purchase returns and allowances.4. An entry debiting inventory and crediting cost of goods soldwould be made whena. Merchandise is sold under periodic inventory.b. Merchandise is sold under perpetual inventory.c. Merchandise is returned under perpetual inventory.d. Merchandise is returned under periodic inventory.*. In a periodic system, the beginning inventory is4. Net purchases minus cost of goods sold. Net purchases minus ending inventory: Goods available for sale minus net purchases** Goods available for sale minus cost of goods sold

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which inventory cost flow assumption does IFRS not allow? a. Specific identification. b. FIFO. c. LIFO. d. Average cost.
The following are several figures reported for Poyer and Sutter as of December 31, 2024: Sutter $ 280,000 760,000 Items Inventory Sales Investment income Cost of goods sold Operating expenses Poyer $ 480,000 960,000 480,000 220,000 380,000 290,000 Poyer acquired 90 percent of Sutter in January 2023. In allocating the newly acquired subsidiary's fair value at the acquisition date, Poyer noted that Sutter had developed a unpatented technology worth $74,000 that was unrecorded on its accounting records and had a five-year remaining life. Any-temaining excess fair value over Sutter's book value was attributed to an indefinite-lived trademark. During 2024, Sutter sells inventory costing $128,000 to Poyer for $176,000. Of this amount, 15 percent remains unsold in Poyer's warehouse at year-end. Required: Determine balances for the following items that would appear on Poyer's consolidated financial statements for 2024: Note: Input all amounts as positive values.
Sales of goods are taxed based on? A. Gross Selling price B. Gross Receipt C. Landed Cost D. Answer is not given.
Which of the following items should not be included in the cost of inventory? Select one: O a. The initial purchase price of inventory O b. Freight out cost to deliver inventory to a customer c. Insurance cost paid to purchase the inventory d. Delivery cost paid to purchase the inventory
Which of the following is not affected by an error related to ending inventory? Multiple Choice O O O O O Sales. Net income. Current assets. Gross profit. Cost of goods sold.
8/ Which of the following term is referred as the inventory cost to the seller of the goods sold to customers? a. Income statement b. Inventory c. Balance sheet d. Cost of goods sold
Which of the following statements are true regarding Costof Goods Sold?(i) Cost of Goods Sold represents the costs that a company incurred to purchase or produce inventory in thecurrent period.(ii) Cost of Goods Sold is an expense on the incomestatement.(iii) Cost of Goods Sold is affected by the inventorymethod selected by a company (FIFO, LIFO, etc.).a. (i) only c. (ii) and (iii)b. (ii) only d. All of the above.
The cost of goods sold is based on the oldest purchases under which method of calculating inventory cost? O A. weighted average method O B. first in, first out (FIFO) O C. gross profit method O D. last in, first out (LIFO)
Inventory cost flow assumptions address accounting issues except when a.identical units of merchandise are acquired at different unit costs during the period. b.an item is sold and it is necessary to determine its cost. c.both of these choices address inventory accounting issues. d.neither of these choices addresses inventory accounting issues.

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Pre b. To determine sales revenue d. Inventory does not affect net income To determine cost of goods sold To determine merchandise returns y is inventory included in the computation of net income? 1. Why i a. C.