Computerized Accounting With
PEACHTREE COMPLETE ACCOUNTING 2012
CHAPTER 8 QUIZ
TRUE/FALSE – MULTIPLE CHOICE QUESTIONS:
1.
Which of the following is a type of inventory costing (valuation) method?
a. LIFO
b. FILO
c. perpetual
d. periodic
2.
Which of the following is not a characteristic of the perpetual inventory system?
a. Maintains a continuous record of the dollar value of inventory.
b. Lacks information about the current dollar amount of inventory during the
accounting period.
c. Maintains a running balance for all inventory items.
d. Updates the Inventory and Cost of Goods Sold accounts throughout the
accounting period after each sales transaction.
3.
Which Peachtree function is used to record the return of goods to a vendor?
a. Vendor Credit Memos
b. Inventory Items
c. Invoice
d. Purchase Order
4.
When using the perpetual inventory system, the sale of merchandise would
include
a. debiting Purchases and crediting Inventory.
b. debiting Inventory and crediting Purchases.
c. debiting Inventory and crediting Cost of Goods Sold.
d. debiting Cost of Goods Sold and crediting Inventory.
5.
Which of the following represents the basic equation for determining the cost of
goods sold if the periodic inventory method is used?
a. Beginning Inventory + Net Purchases – Goods Available for Sale
b. Purchases + Goods Available for Sale – Ending Inventory
c. Goods Available for Sale + Beginning Inventory – Ending Inventory
d. Beginning Inventory + Net Purchases – Ending Inventory
6.
Inventory is which type of account?
a. asset
b. liability
c. expense
d. revenue
e. owner’s equity
© Paradigm Publishing, Inc.
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MATCHING QUESTIONS:
A.
B.
C.
D.
E.
F.
FIFO
Inventory
Inventory Valuation Report
LIFO
periodic
Average Cost
1. A report used to show the quantity of inventory items on hand, item value, and the
total value of all inventory in stock
2. A type of inventory costing method that assumes the last inventory item
purchased is the first one to be sold
3. A type of inventory system that requires a count of each inventory item at the end
of the accounting period to determine the cost of goods sold
4. The inventory costing method in which the value of the ending inventory is based
on a single cost assigned to all units available for sale
5. The stock of goods that a merchandising business has on hand for resale to
consumers
6. A type of inventory costing method that assumes the first inventory item
purchased is the first one to be sold
© Paradigm Publishing, Inc.
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