Self Assessment Quizzes

CHAPTER 25: Section 3 Choosing an Inventory Costing Method

	1.	When a business applies the same accounting methods from one period to the next it is applying the

		a.	conservatism principle
		b.	consistency principle
		c.	fiscal principle
		d.	SALY principle

	2.	The principle that states that it is best to present amounts that are least likely to result in an overstatement of income or assets is the

		a.	consistency principle
		b.	the matching principle
		c.	the value system
		d.	the conservatism principle

	3.	The current price that is charged for similar items of merchandise is called

		a.	value pricing
		b.	price fixing
		c.	market value
		d.	marketing strategy

	4.	A larger ending inventory

		a.	will increase gross profit on sales
		b.	will decrease gross profit on sales
		c.	will have no effect on gross profit on sales
		d.	cannot determine the effect on gross sales