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Chapter 8 Self Test Intermediate Accounting II

The document contains the answers to 4 multiple choice questions about accounting concepts. It indicates the correct answer for each question is true or identifies the correct multiple choice option. It also provides a brief explanation for each answer. The total number of questions is 4 and the total number of correct answers provided is 4.

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Michelle
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408 views2 pages

Chapter 8 Self Test Intermediate Accounting II

The document contains the answers to 4 multiple choice questions about accounting concepts. It indicates the correct answer for each question is true or identifies the correct multiple choice option. It also provides a brief explanation for each answer. The total number of questions is 4 and the total number of correct answers provided is 4.

Uploaded by

Michelle
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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100% (20 out of 20 correct)

Responses to questions are indicated by the

symbol.

1. Merchandising concerns report the cost assigned to unsold units left on hand as
finished goods inventory.
True
False

A.
B.

Correct! Merchandising firms call their unsold units Merchandise Inventory.

2. Brackney Manufacturing Company has the following account balances at year end:
Office supplies $6,000
Raw materials 21,000
Work-in44,000
process
Finished goods 52,000
Prepaid
8,000
insurance
What amount should Brackney report as inventories in its balance sheet?
A.
B.
C.
D.

$52,000.
$96,000.
$117,000.
$123,000.

Correct! $21,000 + $44,000 + $52,000 = $117,000.

3. Under a perpetual inventory system which accounts should be debited the each time a
sale on account is made?
A.
B.
C.
D.

Accounts Payable and Purchases.


Accounts Receivable and Cost of Goods Sold.
Inventory and Cost of Goods Sold.
Accounts Receivable and Purchases.

Correct! When a sale on account is made under a perpetual inventory system,


Accounts Receivable is debited for the selling price of the goods and Cost of Goods
Sold is debited for the cost of the goods.

4. Goods shipped f.o.b. destination which arrive, to a customer, on January 2, 2014


should be included in the seller's December 31, 2013 inventory.
A.
B.

True
False

Correct! Title does not pass to the customer until the goods are delivered so the seller
has title at year-end.

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