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QUESTION 1 Shoprite Co. has a merchandise i en ry level at the beginning of the period a n unting to SSS0,000. During the period Shoprite's Cost of Goods Sold was$650,000. If during the period Shoprite purchased $750,000 of additional merchandise, what was its ending inventory level? 1.$550,000 2.$650,000 3. $450,000 4.none of the above QUESTION 2 True or False. If Boston Beers Recelvables Tunover in 2006 was 1.5, then it managed its receivables better than its dosest competitor who had an Recelvables Turnover ratio for 2006 of 1.0. True False QUESTION 3 A company estimates that $250,000 of its credit sales may be uncollectible. Select the correct journal it would record before preparing its financial statements. 1. db. Allowance for doubtful accounts - $250,000 .- 2.db. Allowance for doubtful accounts$250,000 3.db. Uncollectible Accounts Expense..250,000 4.db. Uncollectible Accounts cr. Accounts Receivable 250.000 Allowance for doubtful accounts$250,000 Accounts $250,000 $250,000 QUESTION 4 When prices a company pays for its merchandise are rising 1.LIFO will result in lower net income and higher inventory valuation than FIFO. 2. LIFO will result in higher net income and a lower inventory valuation than FIFO. .FIFO will result in lower net income and a lower inventory valuation than LIFO. 4. FIFO will result in higher net income and a higher inventory valuation than LIFO. S.None of the Above. QUESTIONS Which inventory costing method generally results in the most recent costs being assigned to the ending inventory? 1.LIFO 2. FIFO 3. Weighted Average Cost 4. Simple Average Cost QUESTION 6 The 'Lower-or Cost-or Market (LCM)rule requires inventory values to be adjusted upward if customars are willing to pay more than what the company originally paid for the merchandise True False

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