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Asset & Inventory Management Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Why is inventory valuation used?

Question 2 2. Which of the following is one of the major categories of non-current assets?

Question 3 3. Which of the following is a costing method that is used to tract and cost specific and identifiable inventory items that are either in or out of stock?

Question 4 4. Willy's Motor Company, with a beta coefficient of 1.34, is which kind of investment relative to the market average?

Question 5 5. Total assets are reported on the balance sheet in what order?

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Question 6 6. The asset turnover ratio tells us...

Question 7 7. Which of the following financial statements give the best picture of an organizations financial status?

Question 8 8. The _____ is the financial statement that lists all of a company's accounts and the balances in them.

Question 9 9. Which of the following is an example of a non-current asset?

Question 10 10. Which of the following is true of the beta coefficient?

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Question 11 11. Intangible assets are:

Question 12 12. What is the total dollar amount that is attributed to the inventory on hand called?

Question 13 13.

Brady's Plumbing has the following assets listed on the balance sheet:

Cash $1000

Accounts Receivable $5000

Inventory $1500

Equipment $15,000

What are the total assets for Brady's Plumbing?

Question 14 14. Which of the following is an intangible asset?

Question 15 15. Where can you locate information on the asset turnover ratio of other companies?

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Question 16 16. Total assets are the sum of noncurrent assets and __________.

Question 17 17. Which inventory system records inventory at specific points in time?

Question 18 18. Which costing method assumes that the most recent inventory items purchased are the first ones to be sold, and inventory items purchased first are sold last?

Question 19 19. Grab a calculator and let's use the CAPM. If the risk-free rate (as reflected by Company X returns) is 0.10, the average market return (as indicated by the 1-year return on Company Z) is 20.63, and Pear Products has a beta coefficient of 0.74, the appropriate required return for Pear Products (rounded to two decimal places) is:

Question 20 20. Which inventory system records inventory on a continual basis?

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Question 21 21. The CAPM makes nine assumptions. Which of these is NOT one of them?

Question 22 22. NRV is calculated by subtracting which of the following from the sales price of an item?

Question 23 23. Which of the following is a type of financial statement?

Question 24 24. What is the replacement cost of inventory called?

Question 25 25. A non-current asset is one that ____ have it's value fully realized within one year.

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Question 26 26. Business assets are:

Question 27 27. The periodic inventory system uses which accounting system to record acquisition of inventory related items?

Question 28 28. What concept states that inventory is valued at the lower of the total cost of purchasing the material or the current market replacement cost?'

Question 29 29. Patents and trademarks are:

Question 30 30. Helen does not have a lot of staff but has a great point-of-sales system that automatically registers the sale of the item and adjusts the inventory. Why would she use a perpetual inventory system?

Asset & Inventory Management Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next question. You can skip questions if you would like and come back to them later with the "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. You will lose your work if you close or refresh this page. Good luck!

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