you may remove the cover sheet and use the back for calculations. No other mater
ID: 2567722 • Letter: Y
Question
you may remove the cover sheet and use the back for calculations. No other materials may be used on the exam. I basic four-function calculator during the exam. f you need scrap paper, Cell phones and programmable calculators may not be used at any time during the exam. They must be stowed a book bag, a purse, or given to the instructor at the start of the exam. If a student is caught using any other terials, including but not limited to notes or electronic devices, they will receive a grade of zero for the exam. Part 1: Multiple Choice (15 points) Write the letter that best answers each question and complete a scantron sheet. During a period of steadily rising costs, the inventory valuation method that yields the highest reported net income is: A. Specific identification method B. LIFO method. C. Weighted-average method. D. Average cost method. E. FIFO method. 1. 2. Which of the following accounts would be classified as a current asset? A. Supplies B. Land C. Building D. Common Stock E. Accounts Payable Costs included in the Merchandise Inventory account can include all of the following except A. Insurance. 3. B. Transportation-in. C. Invoice price minus any discount D. Storage. E. Damaged inventory that cannot be sold 4. Which of the following accounts would be classified as a c A. Supplies B. Building C. Land D. Accounts Payable E. Common Stock MSB110 Test 2, V2 PagExplanation / Answer
Solution 1:
FIFO Method will yield highest net income when the prices are steadily rising.
Solution 2:
A. Supplies is considered as current assets as supplies can be converted into cash within one year.
Solution 3:
Storage cost will not be included in the merchandise inventory account.
Solution 4:
Supplies is considered as current assets as supplies can be converted into cash within one year.
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