1. Beginning inventory is 200 units @ $10/unit. During the year, the following purchases are made (in chronological order): 800 units @ $12/unit; 700 units @ $13/unit; and 100 units @ $15/unit. Ending inventory is 300 units. Compute the cost of ending inventory under the FIFO method.
2. The division of assets and liabilities into current and non-current categories is useful primarily for assessment of
3.The ability of a firm to convert revenue into profit is best measured by:
a. Total revenue.
b. Return on equity.
c. Return on sales.
d. Gross margin percentage.
4. The quick ratio is an especially sensitive measure for assessing a firm's __________
c. Market value.
d. Long-term risk.
5. The process of charging the cost of intangible assets such as patents or goodwill to expense over their useful lives is called:
a. Cost flow.
6. Cost of goods sold appears in the numerator of which ratio?
a. Gross margin.
b. Inventory turnover.
c. Asset turnover.
d. Current ratio.