1-If period 1 ending inventory is understated , than : A. Both cost if goods sol
ID: 2434864 • Letter: 1
Question
1-If period 1 ending inventory is understated , than :A. Both cost if goods sold and net income are understated in period 1.
B. Cost of goods sold is understated and net income is overstated in period 1.
C. Cost of goods sold is overstated and net income in understated in period 1.
D. Both cost of goods sold and net income are overstated in period 1.
2-One a lot of merchandise was counted at $566.34. A second count of the same merchandise showed 566.82. The difference could be ignored due to :
A . Conservation C. Entity
B. Materiality D. Consistency
3- The Journal entry to record the purchase of $ 7,400 of inventory on account under the perpetual inventory method is :
A. Debit inventory , $ 7400 ; Credit cash $ 7400.
B. Debit Purchase , $ 7400 ; Credit account payable , $ 7400.
C. Debit inventory , $ 7400 ; Credit accounts payable, $ 7400.
D. Debit cost of goods sold, $ 7400 ; Credit inventory , $ 7400.
4- . Under LIFO method , the flow of goods through the accounting records will:
A. have no relationship to the physical flow of goods through the business.
B. Exactly match the physical flow goods through the business.
C. Closely match the physical flow goods through the business.
D. Be nearly the opposite of the physical flow of goods through the business.
Explanation / Answer
1-If period 1 ending inventory is understated , than : C. Cost of goods sold is overstated and net income in understated in period 1. 2-One a lot of merchandise was counted at $566.34. A second count of the same merchandise showed 566.82. The difference could be ignored due to : B. Materiality 3- The Journal entry to record the purchase of $ 7,400 of inventory on account under the perpetual inventory method is : C. Debit inventory , $ 7400 ; Credit accounts payable, $ 7400. 4- . Under LIFO method , the flow of goods through the accounting records will: A. have no relationship to the physical flow of goods through the business.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.