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Business English Exercises
 

Inventories

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Home > Teaching Business English > Business English Lessons, Advanced Level # 74
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inventories answer 1
Inventory accounting starts with the inventory on hand.

Correct answer: (b) hand

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inventories answer 2
Inventories cannot be expensed until sold, and meanwhile they are considered an asset.

Correct answer: (c) expensed

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inventories answer 3
There are four generally accepted approaches to inventory valuation based on historical cost.

Correct answer: (b) historical

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inventories answer 4
The specific identification method records actual cost flow: each individual item and its cost must be accounted for.

Correct answer: (c) specific

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inventories answer 5
The weighted average method divides the total cost of inventory items by their total number at the end of any accounting period.

Correct answer: (d) weighted

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inventories answer 6
The moving average method uses an average cost for inventory items that is calculated and applied at the time of each sale.

Correct answer: (b) applied

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inventories answer 7
The FIFO method of inventory evaluation is based on the presumption that most companies normally sell the oldest items in their inventory before they sell the newer ones.

Correct answer: (b) FIFO

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inventories answer 8
The LIFO method is based on the presumption that the most recent stock items purchased will be the initial items sold.

Correct answer: (c) LIFO

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inventories answer 9
The FILO method presumes that the company will continue to keep their oldest items in inventory.

Correct answer: (d) FILO

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inventories answer 10
The FEFO method attempts to ensure that perishable products are sold while they are still in good condition.

Correct answer: (a) FEFO

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