Trivia Questions: Basic Financial Accounting Quiz!

8 Questions | Total Attempts: 367

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Trivia Questions: Basic Financial Accounting Quiz!

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Questions and Answers
  • 1. 
    Which of the following are acceptable inventory costing methods?
    • A. 

      Average cost

    • B. 

      Cost flow

    • C. 

      First In Last Out

    • D. 

      Last In First Out

    • E. 

      First In, First Out

  • 2. 
    What is the Cost of Goods Sold Equation?
    • A. 

      BI - P + EI = COGS

    • B. 

      BI + P + EI = COGS

    • C. 

      BI - P - EI = COGS

    • D. 

      BI + P - EI = COGS

  • 3. 
    When unit costs are rising, which of the following methods will give you the most profit?
    • A. 

      Average

    • B. 

      LIFO

    • C. 

      FIFO

  • 4. 
    Consider the following: Beginning inventory:  2 units $50 Additional Purchases: 2 units $60 4 units $70 Using the FIFO method, what is the amount of COGS if 5 units were sold?
    • A. 

      $180

    • B. 

      $290

    • C. 

      $340

    • D. 

      $350

  • 5. 
    If the unit costs of inventory are decreasing, which method should you use to get lower income taxes?
    • A. 

      FIFO

    • B. 

      LIFO

  • 6. 
    If the unit costs of inventory are increasing, which method should you use to get lower income taxes?
    • A. 

      FIFO

    • B. 

      LIFO

  • 7. 
    Which of the following methods is not allowed by IFRS?
    • A. 

      Average Cost

    • B. 

      FIFO

    • C. 

      LIFO

  • 8. 
    Consider the Inventory Turnover Data below: Harley-Davidson: 9.8 How many days does Harley take to sell its inventory?
    • A. 

      28.7

    • B. 

      37.2

    • C. 

      40.8

    • D. 

      60.2