ACC 557 Week 5 Chapter 5 & 6 Quiz (3 Sets) (Updated One)

Under IFRS, companies can apply revaluation to

Jake's Market recorded the following events involving a recent purchase of merchandise:

      Received goods for $50,000, terms 2/10, n/30.
      Returned $1,000 of the shipment for credit.
      Paid $250 freight on the shipment.
      Paid the invoice within the discount period.

As a result of these events, the company's inventory increased by

The sales revenue section of an income statement for a retailer would not include

Kate Company purchased inventory from Phoebe Company. The shipping costs were $500 and the terms of the shipment were FOB shipping point. Kate would have the following entry regarding the shipping charges:

At the beginning of 2013, Ralston Mills has an inventory of $300,000. Because sales growth was strong during 2013, the company wants to increase inventory on hand to $350,000 at December 31, 2013. If net sales for 2013 are expected to be $1,500,000, and the gross profit rate is expected to be 30%, what is the cost of the merchandise the company should expect to purchase during 2013?

Ezra Company has sales revenue of $40,000, cost of goods sold of $24,000 and operating expenses of $9,000 for the year ended December 31. Ezra's gross profit is

During August, 2013, Baxter's Supply Store generated revenues of $30,000. The company's expenses were as follows: cost of goods sold of $18,000 and operating expenses of $2,000. The company also had rent revenue of $500 and a gain on the sale of a delivery truck of $1,000.

Baxter's net income for August, 2013 is

Romanoff Industries had the following inventory transactions occur during 2013:

The company sold 50 units at $70 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company’s gross profit using LIFO? (rounded to whole dollars)

On July 31, Tractor Supplies sold merchandise to J. Robson on account. The sales price was $8,400, and the cost of goods sold was $6,300. The sales revenue was recorded immediately, but the entry recording the cost of goods sold was dated August 2. As a result, net income for July was

The cost of goods available for sale is allocated to the cost of goods sold and the

The lower-of-cost-or-market (LCM) basis may be used with all of the following methods except

Which of the following statements is correct with respect to inventories?

The requirements for accounting for and reporting of inventories under IFRS, compared to GAAP, tend to be more

The accountant at Cedric Company has determined that income before income taxes amounted to $7,000 using the FIFO costing assumption. If the income tax rate is 30% and the amount of income taxes paid would be $225 greater if the LIFO assumption were used, what would be the amount of income before taxes under the LIFO assumption?