答案和详解如下： 6.First in, first out (FIFO) provides the more useful estimate of inventory and balance sheet information. When analyzing a company using LIFO, a restatement of the inventory account (using the LIFO reserve) is required. Which of the following accounts will NOT require restatement following the restatement of the inventory account? A) Total assets. B) Current liabilities. C) Current assets. D) Shareholder’s equity. The correct answer was A) The restatement of inventories will cause a restatement of current assets and total assets. To keep the balance sheet in balance, the shareholder’s equity account must also be restated.
7.In general, when analyzing profitability and costs, or when analyzing asset and equity ratios, which of the following should be used?
| Profitability/Cost Ratios | Asset/Equity Ratios |
A) LIFO FIFO B) FIFO LIFO C) FIFO FIFO D) LIFO LIFO The correct answer was A) In general, an analyst should use LIFO when examining profitability or cost ratios and FIFO when examining asset or equity ratios.
| Units | Unit Price | Beginning Inventory | 709 | $2.00 | Purchases | 556 | $6.00 | Sales | 959 | $13.00 | SGA Expenses | $2,649 per annum |
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8.What are the earnings before taxes using the FIFO method and LIFO method?
A) $6,900 $5,676 B) $6,900 $5,506 C) $6,213 $5,676 D) $6,213 $5,506 The correct answer was A) FIFO COGS = (709 units)($2/unit) + (959 - 709)($6/unit) = $1,418 + $1,500 = $2,918 Sales = (959 units)($13/unit) = $12,467 EBIT = Sales - COGS - Expenses = 12,467 - 2,918 - 2,649 = $6,900 LIFO COGS = (556 units)($6/unit) + (959 - 556)($2/unit) = $3,336 + $806 = $4,142 Sales = (959 units)($13/unit) = $12,467 EBIT = Sales - COGS - Expenses = 12,467 - 4,142 - 2,649 = $5,676
9.An analyst acquires the following information regarding a company:
| Units | Unit Price | Beginning Inventory | 559 | $1.00 | Purchases | 785 | $5.00 | Sales | 848 | $15.00 | SGA Expenses | $3,191 per annum |
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What are the earnings before taxes using the FIFO Method and the LIFO Method?
A) $7,525 $5,541 B) $7,525 $5,818 C) $6,700 $5,818 D) $6,700 $5,541 The correct answer was A) FIFO: EBT = SALES - (COGS + SGA) = 12,720 - (2,004 + 3,191) = $7,525.00.
LIFO: EBT = SALES - (COGS + SGA) = 12,720 - (3,988 + 3,191) = $5,541.00.
10.Given the following information and assuming beginning inventory was zero what is the gross profit at the end of the period using the FIFO, LIFO, and average cost methods? Purchases | Sales | | 20 units at $50 | 15 units at $60 | | 35 units at $40 | 35 units at $45 | | 85 units at $30 | 85 units at $35 | | FIFO | LIFO | Cost Average | | | | | |
A) $650 $750 $990 B) $650 $750 $677 C) $677 $650 $677 D) $677 $650 $990 The correct answer was B) FIFO  5,450 - 4,800 = $650 LIFO: $5,450 - $4,700 = $750 Cost Average: $5,450 – $4,773.21 = $676.79
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发表于 2008-4-14 11:20
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