Accounting II Inventory

Question 1

The costing method that uses the price of merchandise purchased last to calculate COMS is . . .

Accepted Answer

LIFO

Question 2

The person or business that receives goods on consignment is called the ____.

Accepted Answer

consignee

Question 3

Shipping terms that indicate that title to the goods passes to the buyer when goods are rec'd

Accepted Answer

FOB destination

Question 4

Businesses that need an ending inventory cost for monthly interim financial statements usually

Accepted Answer

estimate the inventory.

Question 5

Goods that are given to a business to sell but the title remains with the vendor are called

Accepted Answer

consignment

Question 6

If the cost of ending merchandise inventory is understated, the COMS will be ___.

Accepted Answer

overstated

Question 7

The costing method that uses the price of merchandise purchased first to calculate COMS is

Accepted Answer

FIFO

Question 8

A form used to show the type of merchandise; qty received; qty sold and balance on hand is .

Accepted Answer

stock record

Question 9

A completed form authorizing a seller to deliver goods with payment later is . . .

Accepted Answer

Purchase Order

Question 10

Most businesses take a periodic inventory . . .

Accepted Answer

yearly

Question 11

The # of times the avg amount of merchandise inventory is sold during a period of time is . . .

Accepted Answer

merchandise inventory turnover ratio

Question 12

A form used during a periodic inventory to record information about each item on hand is . .

Accepted Answer

inventory record

Question 13

The costing method that uses the lower of cost or market price to calculate ending inventory

Accepted Answer

lower or cost or market

Question 14

The inventory method that uses the average cost of beg. inv. + purchases to calculate COMS is

Accepted Answer

weighted average

Questions 14