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Review Questions

17 February, 2016 - 16:35

ac10-1: How large is inventory on the balance sheet of merchandising businesses?

R- ac10-2: What are the two inventory accounting systems most widely used?

R- ac10-3: How ae inventory quantities determined?

R- ac10-4: How revenue is determined in a periodic system?

R- ac10-5: Compare the different inventory costing methods.

R- ac10-6: What are inventory methods that are not based on unit costs?

R- ac10-7: What are the advantage of periodic inventory system over a perpetual system?

R- ac10-8: How is a perpetual inventory system implemented?

R- ac10-9: Are there methods for estimating inventory cost rather than calculating it?

  1. Distinguish between the perpetual and periodic inventory systems.
  2. Which of the following items would a company be likely to account for using the specific identification inventory method?

a. Corporate jet aircraft

b. Large sailboats

c. Pencils

d. Diamond rings

e. Automobile

f. Books

g. Compact discs