Companies using International Financial Reporting Standards (IFRS) use a perpetual inventory system, while companies using U.S. GAAP use a periodic inventory system.

Financial Accounting Ch05

Quiz
•
Business
•
University
•
Easy
badr mohamed
Used 2+ times
FREE Resource
61 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
true
false
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Companies using a perpetual inventory system report credit purchases of inventory on the statement of financial position by increasing inventory and decreasing liabilities.
true
false
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Companies using a perpetual inventory system record all credit purchases by increasing inventory and increasing liabilities.
true
false
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Global Care uses a perpetual inventory system and purchased wheelchairs under terms FOB destination. The freight charges associated with the wheelchairs will be added to the inventory account.
true
false
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
When the buyer pays an invoice within the discount period, the amount of the discount increases the inventory account.
true
false
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Inventory purchased for $2,500 subject to terms 2/10, net 30 could end up being reported on the statement of financial position at an amount greater than $2,500 if the discount isn’t taken by the buyer.
true
false
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Purchase returns are recorded by the buyer as a decrease to inventory.
true
false
Create a free account and access millions of resources
Similar Resources on Wayground
60 questions
Operation Management - Final Test

Quiz
•
University
62 questions
Management Exam 1

Quiz
•
University
63 questions
Intro to Business Final Exam Review

Quiz
•
9th Grade - University
58 questions
1st one

Quiz
•
University
60 questions
CHAPT 9 CUSTOMER SERVICE AND LOGISTIC PERFORMANCE

Quiz
•
University
63 questions
Management Exam

Quiz
•
11th Grade - University
60 questions
Business Communications

Quiz
•
University
60 questions
Mid Term IB A221

Quiz
•
University
Popular Resources on Wayground
25 questions
Equations of Circles

Quiz
•
10th - 11th Grade
30 questions
Week 5 Memory Builder 1 (Multiplication and Division Facts)

Quiz
•
9th Grade
33 questions
Unit 3 Summative - Summer School: Immune System

Quiz
•
10th Grade
10 questions
Writing and Identifying Ratios Practice

Quiz
•
5th - 6th Grade
36 questions
Prime and Composite Numbers

Quiz
•
5th Grade
14 questions
Exterior and Interior angles of Polygons

Quiz
•
8th Grade
37 questions
Camp Re-cap Week 1 (no regression)

Quiz
•
9th - 12th Grade
46 questions
Biology Semester 1 Review

Quiz
•
10th Grade