ACC205 Week 3 – Quiz: Chapters 5 & 6
This attempt took 7 minutes.
Question 1
1 / 1 pts
Gross Profit is ___________________.
None of these define gross profit
Net difference between cost of inventory sold and sales proceeds
Sales revenue less all costs of running the business
Equal to net income
Question 2
1 / 1 pts
All of the following are considered part of inventory cost except__________.
production labor
invoice price
storage cost
Freight
Question 3
1 / 1 pts
In a period of rising raw material costs the inventory cost flow assumption that will provide the firm with the highest net income would be _______________________.
Last in/last out
Average cost
Last in/first out
First in/first out (FIFO)
Question 4
1 / 1 pts
A physical inventory ______________________.
Is the process of actually counting and valuing goods on hand
is only done if a firm suspects theft
would include consigned materials on hand from the firms supplier
means describing he physical condition of goods in storage
Question 5
1 / 1 pts
Property, Plant, and Equipment normally includes all of the following except ___________.
equipment
goodwill
building
land
Question 6
1 / 1 pts
All of the following costs would be included in the cost of a piece of equipment purchased except _________________.
repair parts needed to repair damage during shipment
installation
sales tax
permits
Question 7
1 / 1 pts
When putting an asset into service the useful life is determined by all the methods below except ________________.
Expected wear and tear during operation
Estimating obsolescence
Using professional judgment
The owners manual
Question 8
1 / 1 pts
When selecting a depreciation method to use for depreciable equipment, all of the following would be viable alternatives except _________________.
double-declining balance method
best estimate method
straight-line method
units-of-output method
Question 9
1 / 1 pts
Expenses incurred after acquisition of an asset and after it has been put into service would be ________________.
capitalized if the expenditure extends the useful life of the asset
expensed if the expenditure extends the useful life of the asset
capitalized if required for normal operation
expensed if required for normal operation
1 / 1 pts
Taking a “Big Bath” when a firm incurs an impairment loss means _______________.
A little house cleaning is in order
A loss has occurred because an asset was sold
Using lots of water to clean up the facility
Writing off more value than just the impaired assets
Quiz Score: 10 out of 10
ACC205 Week 3 – Quiz: Chapters 5 & 6 Answer
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