cfa一级financialstatementanalysis∶basicconcepts(编辑修改稿)

cfa一级financialstatementanalysis∶basicconcepts(编辑修改稿)内容摘要：

at the lowest possible price on the balance sheet. C The objective of inventory accounting is to value inventory in a way that best matches costs with revenues in a specific period. The value of inventory determines the amount to be expensed on the ine statement and the value of inventory to be carried on the balance sheet. Question ID: 20179 The following information pertains to a firm that sells picture frames:  The firm uses last in first out (LIFO) as their inventory method.  11/1/01 Beginning inventory two units, at $10 $20  11/9/01 three frames purchased at $12 $36  11/18/01 two frames purchased at $14 $28 13  Ending inventory: three frames Four units were sold, leaving three frames in inventory. What is the value of the inventory at the end of November? A. $32. B. $40. C. $36. D. $30. A Using the LIFO method of inventory the balance of the ending inventory is lower as the firm uses the first purchase amounts. In this case the ending inventory would be $32, two frames at $10 and one frame at $12. Question ID: 20182 When calculating ending inventory using the average cost method, which of the following is CORRECT? A. The average is calculated using the beginning inventory balance plus purchases. B. Number of units purchased is the denominator in calculating the average. C. Number of units remaining is the denominator in calculating the average. D. The average is calculated using only purchases in the accounting period. A The average cost is calculated by taking the beginning inventory balance plus purchases divided by the total number of units in inventory, which is the number in the beginning balance plus the number purchased. Question ID: 20180 14 The following information pertains to Micro Corporation, which sells microwave ovens:  Beginning inventory is three microwaves at $50 each. $150  3/16/00 three microwaves purchased for $52 each. $156  3/25/00 four microwaves purchased at $55 each. $220  Ending inventory is four units for a total of $209. $209 Which inventory method is Micro Corporation using? A. Specific identification. B. Last in first out (LIFO). C. First in first out (FIFO). D. Weighted average. A FIFO EI would equal $220 LIFO EI would equal (50 x 3) + 52 = $202 Average cost = (150 + 156 + 220)/10 = $. $ x 4 = $. Micro Corporation must be using the specific identification method. Total inventory cost = $50 + (2)($52) + $55 = $209 Question ID: 20178 The following information pertains to a firm that sells speakers:  The firm uses first in first out (FIFO) as their inventory method  6/1/01 Beginning inventory two speakers $25ea.  6/12/01 three speakers purchased $26ea. 15  6/23/01 one speaker purchased $27ea.  Ending inventory: two speakers Four units were sold, leaving two speakers in inventory. What is the value of the inventory at the end of June? A. $54. B. $50. C. $53. D. $51. C With the FIFO method of inventory the balance of the ending inventory is calculated based on the last items purchased. In this case the ending inventory is $53, one speaker at $27 and one speaker at $26. Question ID: 20181 Seely Company sells dryers and has the following information available:  Beginning inventory two dryers $400  5/2/98 one dryer purchased $230  5/18/98 three dryers purchased $705  Ending inventory is 2 units $445 Which inventory method is Seely Company using? A. Last in last out (LILO). B. Last in first out (LIFO). C. First in first out (FIFO). D. Weighted average. 16 D Seely Company is using the weighted average inventory method. The weighted average is calculated by taking beginning inventory plus purchases / total units, ($400 + $230 + $705)/6= $. This average is then multiplied by the number of dryers left in inventory, $ x 2= $445. Note: FIFO Ending Inventory = (705/3) x 2 = $470 LIFO Ending Inventory = $400 LILO Ending Inventory = (705/3) x 2 = $470 Question ID: 21248 In 2020, Jules Company realized that they understated their inventory by $1,500 in 1999. How should Jules Company handle this? A. An adjustment to increase cost of goods sold (COGS) by $1,500 needs to be made. B. An adjustment to increase inventory by $1,500 needs to be made. C. An adjustment to reduce inventory by $1,500 needs to be made. D. No adjustment needs to be made. D An understatement of inventory that is not realized until two or more years later will have a effect of zero on inventory. The ending balance of inventory in 1999 is understated, which will carry over to the beginning balance in 2020. In 2020, COGS will be overstated and ine understated. The ending balance in 2020 for inventory is correct because over two or more years the understatement washes out. Jules Company should not make any adjustments. Question ID: 14546 Given a current ratio greater than 1, if ending inventory is understated by $3,000 and beginning inventory is overstated by $5,000, the effect on ine and the current ratio will be: 17 A. Net Ine Current Ratio understated by $8,000 lower B. Net Ine Current Ratio overstated by $2,000 lower C. Net Ine Current Ratio understated by $8,000 higher D. Net Ine Current Ratio understated by $2,000 lower A Beg Inv +$5000 (overstated) + Purchases COGS = Ending Inv. $3000 (understated) The amount of the additionally reported COGS is the difference between +5000 and 3000 or 5000 (3000) = +8000 extra COGS reported. This would cause NI to be $8000 less than the actual NI, or understated by $8000. Current Ratio = current assets/ current liabilites, Since inventory is considered a current asset and was reportedly reduced by $8000, the curren。