ACG 3103 Final Exam with all Correct & 100% Verified
Answers |Guaranteed to Pass
inventory turnover ✔Correct Answer-cost of goods sold/average inventory for the same
period
average accounts payable days outstanding ✔Correct Answer-accounts payable/(COGS/365)
average days to sell inventory ✔Correct Answer-inventory/(COGS/365)
average days to collect cash from sales ✔Correct Answer-accounts receivable/(sales/365)
what happens when inventory is understated in the current period? ✔Correct Answer-- COGS
overstated
- Net Income understated
- Retained Earnings understated
what happens when inventory is understated in the next period? ✔Correct Answer-- COGS
understated
- Net Income overstated
- Retained Earnings is correct
what happen when inventory is overstated in the current period? ✔Correct Answer-- COGS
understated
- Net Income overstated
- Retained Earnings is overstated
what happens when inventory is overstated in the next period? ✔Correct Answer-- COGS
overstated
- Net Income understated
- Retained Earnings correct
why do we report inventory at LCM or NRV? ✔Correct Answer-to avoid overstating assets and
to recognize decline in utility
period costs include ✔Correct Answer-rent, insurance of facility, and salary
product costs include ✔Correct Answer-raw materials, shipping and insurance while in transit,
etc.
measurement for cash ✔Correct Answer-fair value
Answers |Guaranteed to Pass
inventory turnover ✔Correct Answer-cost of goods sold/average inventory for the same
period
average accounts payable days outstanding ✔Correct Answer-accounts payable/(COGS/365)
average days to sell inventory ✔Correct Answer-inventory/(COGS/365)
average days to collect cash from sales ✔Correct Answer-accounts receivable/(sales/365)
what happens when inventory is understated in the current period? ✔Correct Answer-- COGS
overstated
- Net Income understated
- Retained Earnings understated
what happens when inventory is understated in the next period? ✔Correct Answer-- COGS
understated
- Net Income overstated
- Retained Earnings is correct
what happen when inventory is overstated in the current period? ✔Correct Answer-- COGS
understated
- Net Income overstated
- Retained Earnings is overstated
what happens when inventory is overstated in the next period? ✔Correct Answer-- COGS
overstated
- Net Income understated
- Retained Earnings correct
why do we report inventory at LCM or NRV? ✔Correct Answer-to avoid overstating assets and
to recognize decline in utility
period costs include ✔Correct Answer-rent, insurance of facility, and salary
product costs include ✔Correct Answer-raw materials, shipping and insurance while in transit,
etc.
measurement for cash ✔Correct Answer-fair value
