Homework answers / question archive / Module 5Accounting for Assets: Cash and Receivables BluJay Aviation BluJay Aviation: Episode 6 BluJay Aviation has just completed its third year of operations, and Wren and Brad discuss a new opportunity for growth

Module 5Accounting for Assets: Cash and Receivables BluJay Aviation BluJay Aviation: Episode 6 BluJay Aviation has just completed its third year of operations, and Wren and Brad discuss a new opportunity for growth

Accounting

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Module 5Accounting for Assets: Cash and Receivables

BluJay Aviation

BluJay Aviation: Episode 6

BluJay Aviation has just completed its third year of operations, and Wren and Brad discuss a new opportunity for growth.

Watch BluJay Aviation - Episode 6, and then complete the quiz.

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inventory turnover1 of 3.

Days-in-inventory2 of 3.

inventory turnover3 of 3.

The  ratio compares cost of goods sold during a period to the average inventory balance during that period and measures the ability to sell inventory.

 ratio converts the  ratio into a measure of days by dividing the turnover ratio into 365 days.

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While companies can choose any of the four costing methods most choose the FIFO method because of the tax advantages it provides.

True

False

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Lower-of-cost-or-market rule1 of 10.

Specific Identification Method2 of 10.

Last-in, First-out Method3 of 10.

Perpetual Inventory System4 of 10.

Moving average method5 of 10.

Gross profit method6 of 10.

First-in, First-out Method7 of 10.

Inventory8 of 10.

LIFO Reserve9 of 10.

Periodic Inventory System10 of 10.

 – A tangible resource that is held for resale in the normal course of operations.

 – A recording system that updates the inventory account each item inventory is bought or sold

 – a recording system that updates the inventory account only at the end of an accounting period.

 – Inventory costing method that determines cost of goods sold based on the actual cost of each inventory item sold.

 – Inventory costing method that determines cost of goods sold based on the assumption that the first unit of inventory available for sale is the first unit sold.

 – Inventory costing method that determines cost of goods sold based on the assumption that the last unit of inventory available for sale is the first unit sold.

 - Inventory costing method that determines cost of goods sold based on the average unit cost of inventory available for sale.

 – The difference between inventory reported on a LIFO basis and what inventory would be if reported on a FIFO bases.

 – A method of estimating inventory using a company’s gross profit percentage to estimate cost of goods sold and the ending inventory.

 – Requires inventory to be reported on the balance sheet at its market value if the market value is lower than the inventory’s cost.