Question1: The LIFO Conformity Rule states that if LIFO is used for:
[A] One company in an affiliated group, it must be used by all companies in an affiliated group
[B] Domestic companies, it must be used by foreign partners
[C] One class of inventory, it must be used for all classes of inventory
[D] Tax purposes, it must be used for financial reporting
Question2: For a typical manufacturing company, the most common critical point for recognizing revenue is the date:
[A] The product is delivered
[B] The payment is received
[C] An order is received
[D] Production is completed
Question3: The cost of goods available for sale is allocated between
[A] Ending inventory and cost of goods sold
[B] Beginning inventory and cost of goods sold
[C] Beginning inventory and ending inventory
[D] Beginning inventory and cost of goods on hand
Question4: A physical inventory count is taken when using which of the following inventory methods?
[A] Periodic
[B] Interim
[C] Perpetual
[D]Both perpetual and periodic methods
Question5: Ending inventory is equal to the cost of items on hand plus:
[A] Items in transit sold f.o.b. shipping point
[B] Purchases in transit f.o.b. destination
[C] Items in transit sold f.o.b. destination
[D] None of the above