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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. What is a Current Asset?

Question 2 2. Which of the following is classified as a current asset?

Question 3 3. Which of the following must always be classified as a current asset?

Question 4 4. A non-current asset is one that ____ have it's value fully realized within one year.

Question 5 5. Which of the following is an example of a non-current asset?

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Question 6 6. Which of the following is not a non-current asset?

Question 7 7. Which of the following is true of the beta coefficient?

Question 8 8. Which of the following is an advantage of using the CAPM?

Question 9 9. Willy's Motor Company, with a beta coefficient of 1.34, is which kind of investment relative to the market average?

Question 10 10. What concept states that inventory is valued at the lower of the total cost of purchasing the material or the current market replacement cost?'

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Question 11 11. Bob is selling coffee makers at his home store. Bob bought his coffee maker from the manufacturer for $25. Bob sells these coffee makers for $60. In this particular instance, the preparation to sell the coffee maker cost $5, and the commission he paid the employee who sold it was $8.50. What is the NRV in this instance?

Question 12 12. If the current market price of an item falls between the market ceiling and the market floor, what price is used to value inventory?

Question 13 13. Which of the following is an asset for a company?

Question 14 14. Return on Assets measures how well a company uses its assets to generate _____.

Question 15 15. The _____ is the financial statement that lists all of a company's accounts and the balances in them.

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

Question 17 17. How are the assets that are used in the calculation of total assets valued?

Question 18 18. Total assets are reported on which of the following financial statements?

Question 19 19. Which of the following is not a business asset?

Question 20 20. Intangible assets are:

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Question 21 21. Business assets are:

Question 22 22. What is the acquisition price of inventory called?

Question 23 23. Which of the following requires that on hand inventory at the end of an accounting period be valued at the lower of cost or market?

Question 24 24. What is the total dollar amount that is attributed to the inventory on hand called?

Question 25 25. Which of the following financial statements give the best picture of an organizations financial status?

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Question 26 26. Which of the following is an intangible asset?

Question 27 27. 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 28 28. The return that you would expect to get on an item after the item has been sold and the cost of selling that item has been subtracted is called what?

Question 29 29. The _____ is the financial statement that tells how much money a company made or lost in a given time period.

Question 30 30. Total assets are reported on the balance sheet in what order?

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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