Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 10, Problem 14MC
Which of the following indicates a positive trend for inventory management?
A. increasing number of days’ sales in inventory ratio
B. increasing inventory turnover ratio
C. increasing cost of goods sold
D. increasing sales revenue
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Students have asked these similar questions
An increase in the inventory turnover rate is indicative of:
Multiple Choice
a decrease in the cost of goods sold.
a decrease in the supply of inventory.
an increase in the supply of inventory.
an increase in sales revenue.
An increasing inventory turnover ratioa. Indicates a longer time span between the ordering andreceiving of inventory.b. Indicates a shorter time span between the ordering andreceiving of inventory.c. Indicates a shorter time span between the purchase andsale of inventory.d. Indicates a longer time span between the purchase andsale of inventory.
Which of the following would be data rather than
information?
a.
The average cost per unit of purchases over a period
b.
The increase or decrease in purchases in relation to the
prior year
C.
Total purchases over a period
d.
The percentage increase in purchases compared with
the previous period
CLEAR MY CHOICE
Chapter 10 Solutions
Principles of Accounting Volume 1
Ch. 10 - If a company has four lots of products for sale,...Ch. 10 - If a company has three lots of products for sale,...Ch. 10 - When inventory items are highly specialized, the...Ch. 10 - If goods are shipped FOB destination, which of the...Ch. 10 - On which financial statement would the merchandise...Ch. 10 - When would using the FIFO inventory costing method...Ch. 10 - Which accounting rule serves as the primary basis...Ch. 10 - Which type or types of inventory timing system...Ch. 10 - Which of these statements is false? A. If cost of...Ch. 10 - Which inventory costing method is almost always...
Ch. 10 - Which of the following describes features of a...Ch. 10 - Which of the following financial statements would...Ch. 10 - Which of the following would cause periodic ending...Ch. 10 - Which of the following indicates a positive trend...Ch. 10 - What is meant by the term gross margin?Ch. 10 - Can a business change from one inventory costing...Ch. 10 - Why do consignment arrangements present a...Ch. 10 - Explain the difference between the terms FOB...Ch. 10 - When would a company use the specific...Ch. 10 - Explain why a company might want to utilize the...Ch. 10 - Describe the goal of the lower-of-cost-or-market...Ch. 10 - Describe two separate and distinct ways to...Ch. 10 - Describe costing inventory using first-in,...Ch. 10 - Describe costing inventory using last-in,...Ch. 10 - Describe costing inventory using weighted average....Ch. 10 - How long does it take an inventory error affecting...Ch. 10 - What type of issues would arise that might cause...Ch. 10 - Explain the difference between the flow of cost...Ch. 10 - What insights can be gained from inventory ratio...Ch. 10 - Calculate the goods available for sale for...Ch. 10 - Company accepts goods on consignment from R...Ch. 10 - The following information is taken from a companys...Ch. 10 - Complete the missing piece of information...Ch. 10 - Akira Company had the following transactions for...Ch. 10 - Akira Company had the following transactions for...Ch. 10 - Prepare journal entries to record the following...Ch. 10 - Calculate the cost of goods sold dollar value for...Ch. 10 - Calculate the cost of goods sold dollar value for...Ch. 10 - Calculate the cost of goods sold dollar value for...Ch. 10 - Prepare journal entries to record the following...Ch. 10 - Prepare Journal entries to record the following...Ch. 10 - If a group of inventory items costing $15,000 had...Ch. 10 - If Wakowski Companys ending inventory was actually...Ch. 10 - Shetland Company reported net income on the...Ch. 10 - Compute Altoona Companys (a) inventory turnover...Ch. 10 - Complete the missing pieces of McCarthy Companys...Ch. 10 - Calculate the goods available for sale for Soros...Ch. 10 - X Company accepts goods on consignment from C...Ch. 10 - Considering the following information, and...Ch. 10 - Complete the missing piece of information...Ch. 10 - Bleistine Company had the following transactions...Ch. 10 - Bleistine Company had the following transactions...Ch. 10 - Prepare journal entries to record the following...Ch. 10 - Calculate the cost of goods sold dollar value for...Ch. 10 - Calculate the cost of goods sold dollar value for...Ch. 10 - Calculate the cost of goods sold dollar value for...Ch. 10 - Prepare journal entries to record the following...Ch. 10 - Prepare journal entries to record the following...Ch. 10 - If a group of inventory items costing $3,200 had...Ch. 10 - If Barcelona Companys ending inventory was...Ch. 10 - Tanke Company reported net income on the year-end...Ch. 10 - Compute Westtown Companys (A) inventory turnover...Ch. 10 - Complete the missing pieces of Delgado Companys...Ch. 10 - When prices are rising (inflation), which costing...Ch. 10 - Trini Company had the following transactions for...Ch. 10 - Trini Company had the following transactions for...Ch. 10 - Calculate the cost of goods sold dollar value for...Ch. 10 - Use the first-in, first-out (FIFO) cost allocation...Ch. 10 - Use the last-in, first-out (LIFO) cost allocation...Ch. 10 - Use the weighted-average (AVG) cost allocation...Ch. 10 - Prepare journal entries to record the following...Ch. 10 - Calculate a) cost of goods sold, b) ending...Ch. 10 - Calculate a) cost of goods sold, b) ending...Ch. 10 - Calculate a) cost of goods sold, b) ending...Ch. 10 - Compare the calculations for gross margin for A76...Ch. 10 - Company Elmira reported the following cost of...Ch. 10 - Assuming a companys year-end inventory were...Ch. 10 - Use the following information relating to Shana...Ch. 10 - Use the following information relating to Clover...Ch. 10 - When prices are falling (deflation), which costing...Ch. 10 - DeForest Company had the following transactions...Ch. 10 - DeForest Company had the following transactions...Ch. 10 - Calculate the cost of goods sold dollar value for...Ch. 10 - Use the first-in, first-out method (FIFO) cost...Ch. 10 - Use the last-in, first-out method (LIFO) cost...Ch. 10 - Use the weighted-average (AVG) cost allocation...Ch. 10 - Prepare journal entries to record the following...Ch. 10 - Calculate a) cost of goods sold, b) ending...Ch. 10 - Calculate a) cost of goods sold, b) ending...Ch. 10 - Calculate a) cost of goods sold, b) ending...Ch. 10 - Compare the calculations for gross margin for B76...Ch. 10 - Company Edgar reported the following cost of goods...Ch. 10 - Assuming a companys year-end inventory were...Ch. 10 - Use the following information relating to Singh...Ch. 10 - Use the following information relating to Medinas...Ch. 10 - Assume your company uses the periodic inventory...Ch. 10 - Consider the dilemma you might someday face if you...Ch. 10 - Use a spreadsheet and the following excerpts from...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- What insights can be gained from inventory ratio analysis, such as inventory turnover ratio and number of days sales in inventory ratio?arrow_forwardWhich of the following is an advantage of the periodic inventory system? A. frequent physical inventory counts B. cost prohibitive C. time consuming D. real-time information for managersarrow_forwardUse the following hypothetical data for Walgreens in Years 11 and 12 to project revenues, cost of goods sold, and inventory for Year +1. Assume that Walgreenss Year +1 revenue growth rate, gross profit margin, and inventory turnover will be identical to Year 12. Project the average inventory balance in Year +1 and use it to compute the implied ending inventory balance.arrow_forward
- Inventory Turnover Ratio shows the speed at which the inventory will be converted into sales. Select one: True Falsearrow_forwardUsing the attached data answer the following question 2-Which year has the best inventory turnover? Explain with calculations 3-Which year has the highest return on investment? Explain with calculationsarrow_forwardJohnson would like to know the inventory turnover ratio. You may tell Johnson to a. Divide cost of goods sold by the inventory b. Divide inventory by the cost of goods sold c. Divide inventory by the number of days d. Divide cost of goods sold by salesarrow_forward
- Compared to using the FIFO method to account for inventory, during periods of risingprices, a company using the LIFO method is most likely to report higher:A. net income.B. cost of sales.C. income taxesarrow_forwardIf inventory prices are rising the method of inventory valuation that gives the highest profit and the highest ending inventory is:a. FIFO.b. LIFO.c. Weighted average.d. Perpetual method.arrow_forward22.Which inventory costing method has a stabilizing effect on profit, such that during a period of rising prices its use produces a not so high cost of goods sold and not so low profit as the earlier lower costs tend to stabilize the effect of increasing prices on both cost of goods sold and ending inventory? a. First-in, first-out method b. Last-in, first-out method c. Specific identification method d. Average methodarrow_forward
- Which of the following is false? Select one: a. Days’ sales in inventory is equal to the average number of days it takes to sell inventory. b. Higher days’ sales in inventory means that inventory is less likely to become obsolete because it is sold in fewer days c. Inventory ratio is equal to the number of times inventory was completely purchased and sold (turned over) during the period. d. Inventory turnover ratio is calculated by dividing COGS by the average value of inventory over the period.arrow_forwardIn a period of rising prices, the inventory method which tends to give the highest reported inventory is A) FIFO B) Moving Average C) LIFO D) Weighted-averagearrow_forward
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