ACC 300 CH8 EXAM QUESTIONS WITH
VERIFIED SOLUTIONS
The definition of inventory includes which of the following items? (Select all that apply.)
Multiple select question.
items used currently in the production of goods to be sold
items held for use or disposal
items held for resale
items currently in production for future sale
items used currently in the production of goods to be sold
items held for resale
items currently in production for future sale
A _____ company resells goods while a _____ company produces goods.
Multiple choice question.
manufacturing; retail
merchandising; manufacturing
manufacturing; merchandising
merchandising; retail
merchandising; manufacturing
Which of the following accounts are typically reported on the balance sheet of a
manufacturing company? (Select all that apply.)
Multiple select question.
raw materials
merchandise inventory
work in process
cost of goods sold
finished goods
raw materials
work in process
finished goods
In a perpetual inventory system the inventory account is
Multiple choice question.
adjusted at the end of each month.
adjusted at the end of the year.
continually adjusted.
continually adjusted.
A periodic inventory system (Select all that apply.)
Multiple select question.
, continuously tracks the cost of merchandise sold.
does not continuously track the cost of merchandise sold.
continuously tracks the quantity of merchandise.
does not continuously track the quantity of merchandise.
does not continuously track the cost of merchandise sold.
does not continuously track the quantity of merchandise.
Items a company intends to sell in the normal course of business, has in production for
future sale, or uses currently in production, are all examples of what?
Multiple choice question.
Investments
Work in process
Inventory
Raw materials
Inventory
A _____ inventory system recognizes cost of goods sold each time a sale occurs; a _____
inventory system decreases inventory each time a sale occurs.
Multiple choice question.
perpetual; periodic
perpetual; perpetual
periodic; periodic
periodic; perpetual
perpetual; perpetual
Correctly match the type of company with the type of inventory purchased.
Instructions
Wholesale and retail companies
Manufacturing companies
options:
Purchase goods that are primarily in completed form.
Purchase goods that are used to produce another product.
Wholesale and retail companies
matches
Choice
Purchase goods that are primarily in completed form.
Manufacturing companies
matches
Choice
Purchase goods that are used to produce another product.
VERIFIED SOLUTIONS
The definition of inventory includes which of the following items? (Select all that apply.)
Multiple select question.
items used currently in the production of goods to be sold
items held for use or disposal
items held for resale
items currently in production for future sale
items used currently in the production of goods to be sold
items held for resale
items currently in production for future sale
A _____ company resells goods while a _____ company produces goods.
Multiple choice question.
manufacturing; retail
merchandising; manufacturing
manufacturing; merchandising
merchandising; retail
merchandising; manufacturing
Which of the following accounts are typically reported on the balance sheet of a
manufacturing company? (Select all that apply.)
Multiple select question.
raw materials
merchandise inventory
work in process
cost of goods sold
finished goods
raw materials
work in process
finished goods
In a perpetual inventory system the inventory account is
Multiple choice question.
adjusted at the end of each month.
adjusted at the end of the year.
continually adjusted.
continually adjusted.
A periodic inventory system (Select all that apply.)
Multiple select question.
, continuously tracks the cost of merchandise sold.
does not continuously track the cost of merchandise sold.
continuously tracks the quantity of merchandise.
does not continuously track the quantity of merchandise.
does not continuously track the cost of merchandise sold.
does not continuously track the quantity of merchandise.
Items a company intends to sell in the normal course of business, has in production for
future sale, or uses currently in production, are all examples of what?
Multiple choice question.
Investments
Work in process
Inventory
Raw materials
Inventory
A _____ inventory system recognizes cost of goods sold each time a sale occurs; a _____
inventory system decreases inventory each time a sale occurs.
Multiple choice question.
perpetual; periodic
perpetual; perpetual
periodic; periodic
periodic; perpetual
perpetual; perpetual
Correctly match the type of company with the type of inventory purchased.
Instructions
Wholesale and retail companies
Manufacturing companies
options:
Purchase goods that are primarily in completed form.
Purchase goods that are used to produce another product.
Wholesale and retail companies
matches
Choice
Purchase goods that are primarily in completed form.
Manufacturing companies
matches
Choice
Purchase goods that are used to produce another product.
