Questions from Financial Accounting

Q: Complete the following table by indicating for (a) through (

Complete the following table by indicating for (a) through (g) whether the proper answer is debit or credit:

Q: For (a) through (d), identify the items designated

For (a) through (d), identify the items designated by X and Y. a. Purchases – (X + Y) = Net purchases. b. Net purchases + X = Cost of merchandise purchased. c. Merchandise inventory (beginning) + Cost...

Q: Why is it important to take a physical inventory periodically when using

Why is it important to take a physical inventory periodically when using a perpetual inventory system?

Q: Do the terms FIFO, LIFO, and weighted average refer to

Do the terms FIFO, LIFO, and weighted average refer to techniques used in determining quantities of the various classes of merchandise on hand? Explain.

Q: If merchandise inventory is being valued at cost and the price level

If merchandise inventory is being valued at cost and the price level is decreasing, which of the three methods of costing—FIFO, LIFO, or weighted average cost—will yield (a) The highest inventory cost...

Q: Which of the three methods of inventory costing—FIFO, LIFO

Which of the three methods of inventory costing—FIFO, LIFO, or weighted average cost—will in general yield an inventory cost most nearly approximating current replacement cost?

Q: If inventory is being valued at cost and the price level is

If inventory is being valued at cost and the price level is steadily rising, which of the three methods of costing—FIFO, LIFO, or weighted average cost—will yield the lowest annual income tax expense?...

Q: On January 26, Nyree Co. borrowed cash from Conrad Bank

On January 26, Nyree Co. borrowed cash from Conrad Bank by issuing a 45-day note with a face amount of $150,000. a. Determine the proceeds of the note, assuming that the note carries an interest rate...

Q: Using the following data, how should the merchandise be valued under

Using the following data, how should the merchandise be valued under lower of cost or market? Original cost …………………………………… $1,350 Estimated selling price ………………………. 1,475 Selling expenses ………………………………...

Q: The inventory at the end of the year was understated by $

The inventory at the end of the year was understated by $14,750. (a) Did the error cause an overstatement or an understatement of the gross profit for the year? (b) Which items on the balance sheet at...