Part III Choose the best answer for the listed below multiple choice questions. (1 point each)
1. Which of the following is correct about work in process inventory? A) Cost assigned to goods and materials on hand but not yet placed into production.
B) Cost of raw material on which production has been started but not completed including labor cost
C) Cost of raw material on which production has been started but not completed without labor cost
D) Non-of the above
2. If ending inventory is understated, the cost of merchandise sold will be overstated, and if ending inventory is overstated, the cost of merchandise sold will be understated. Which of the following best describe this relationship?
A.Direct relationship
B.Inverse relationship
C.No relationship
D.Positive relationship
3. Which of the following cost assigning method used when each item in inventory can be directly identified with a specific purchase and its invoice?
A) Specific identification
B. FIFO
C. LIFO
D. Weighted average
4. Which of the following is best describe the characteristics of LIFO yields in the periods of rising (increasing) prices (or if there is inflationary trend)?
A) Higher ending inventory
B) Lower cost of merchandise Fundamentals of Accounting II Assignment
C. Higher gross profit
D. Lower ending inventory
5.Which of the ff is best described the amount of income that an organization erns from selling of items after deducting their cost?
A.Net profit method
B.Retail method
C.Lower of cost or Market method
D.Gross profit method
6.Which of the ff is not catagorized under the catagory of tangiable assets
A.Land and buildings
B.Trucks
C.Goodwill,patents,copy rights,franchise,Trade marks
D.Equipment andmachineries
7.One of the ff methods of computing deprecoation for plant asset?
A.The straigt line and units of production method
B.The double declining balance method
C.The sum of the year digits method
D.All
