Accounting II - Chapter 20 Review Exam
Questions and Answers with Verified
Solutions | Latest Updated 2026
Using the price of Last-in, first-out inventory costing
merchandise purchased last to method (LIFO)
calculate the cost of
merchandise sold first.
Using the average cost of Weighted-average inventory costing
beginning inventory plus method
merchandise purchased during
a fiscal period to calculate the
cost of merchandise sold.
A file of stock records for all Stock ledger
merchandise on hand.
A form used during a physical Inventory record
inventory to record
information about each item of
merchandise on hand.
Estimating inventory by using Gross profit method of estimating
the previous year's percentage inventory
of gross profit on operations.
A form used to show the kind Stock record
of merchandise, quantity
received, quantity sold, and
balance on hand.
, Using the lower of cost or Lower cost of market inventory
market price to calculate the costing method (LCM)
cost of ending merchandise
inventory.
The price that must be paid to Market value
replace an asset.
Using the price of First-in, first-out inventory costing
merchandise purchased first to method (FIFO)
calculate the cost of
merchandise sold first.
The gross profit method of TRUE
estimating inventory makes it
possible to prepare monthly
income statements without
taking a physical inventory.
FIFO is a method used to FALSE
determine the quantity of each
type of merchandise on hand.
A merchandise inventory that TRUE
is larger than needed may
decrease net income.
A merchandise inventory FALSE
evaluated at the end of a fiscal
period is known as a perpetual
inventory.
Questions and Answers with Verified
Solutions | Latest Updated 2026
Using the price of Last-in, first-out inventory costing
merchandise purchased last to method (LIFO)
calculate the cost of
merchandise sold first.
Using the average cost of Weighted-average inventory costing
beginning inventory plus method
merchandise purchased during
a fiscal period to calculate the
cost of merchandise sold.
A file of stock records for all Stock ledger
merchandise on hand.
A form used during a physical Inventory record
inventory to record
information about each item of
merchandise on hand.
Estimating inventory by using Gross profit method of estimating
the previous year's percentage inventory
of gross profit on operations.
A form used to show the kind Stock record
of merchandise, quantity
received, quantity sold, and
balance on hand.
, Using the lower of cost or Lower cost of market inventory
market price to calculate the costing method (LCM)
cost of ending merchandise
inventory.
The price that must be paid to Market value
replace an asset.
Using the price of First-in, first-out inventory costing
merchandise purchased first to method (FIFO)
calculate the cost of
merchandise sold first.
The gross profit method of TRUE
estimating inventory makes it
possible to prepare monthly
income statements without
taking a physical inventory.
FIFO is a method used to FALSE
determine the quantity of each
type of merchandise on hand.
A merchandise inventory that TRUE
is larger than needed may
decrease net income.
A merchandise inventory FALSE
evaluated at the end of a fiscal
period is known as a perpetual
inventory.
