Question

1.Randy Jones decided to run an ABC analysis of his 500 stock keeping inventory items. He found that his average inventory was $200,000 and that there were 50 items out of the 500 that cost him $23,000. These 50 items would be classified as ________ items.     

A: C

B: D

C: A

D: B

2.The forecasting model that assumes previous time periods have some influence on future sales, but the influence varies by time period, is      

  A:historical analogy.   B:moving average. C:weighted moving average.   D:mean absolute deviation.   E:exponential smoothing.

3.Current assets are assets ________ and fixed assets are assets ________.              

A.converted to cash during the accounting year; that have an expected life in excess of one year

B.that have an expected life in excess of one year; converted to cash during the accounting year

C.that have an expected life in excess of one year; that have an expected life in excess of one year

D.converted to cash during the accounting year; converted to cash during the accounting year

4.The Tom Smith Corporation has the following items: Cash, $5,000; Machinery, $50,000; Building, $150,000; Note payable bank, $10,000; Savings, $10,000; Long-term debt, $50,000; Accounts payable, $30,000; Taxes payable, $5,000; Accounts receivable, $30,000; Inventory, $10,000; Depreciation Building, $35,000; Depreciation Machinery, $25,000; Land $50,000. Owner's equity for this Corporation are

A:$95,000.     B:$55,000.   C:$45,000. D.$155,000.

Answer 1

1.) Option D is correct i.e. B

B class items are interclass items with a medium consumption value.

2.) Option C is correct i.e. weighted moving average

This model assumes that the closest time is period is more accurate for future forecast than previous ones,, also previous time periods have some influence on future sales.

3.) Option A is correct i.e. converted to cash during the accounting year; that have an expected life in excess of one year.

4.) Option D is correct i.e. $155,000