Question:
1 It can be expected that companies that sell perishable goods have higher inventory turnover than companies that sell nonperishable goods. T or F
2 The consistency principle requires a company to use the same accounting methods period after period, so that financial statements are comparable across periods. T or F
3 If obsolete or damaged goods can be sold, they will be included in inventory at their net realizable value. T or F
4 When units are purchased at different costs over time, it is simple to determine the cost per unit assigned to inventory. T or F
5 In applying the lower of cost or market method to inventory valuation, market is defined as the current replacement cost. T or F
6 Monthly or quarterly statements are called interim statements because they are prepared between the traditional annual statement dates. T or F
7 If damaged and obsolete goods cannot be sold they are not included in inventory T or F
8 Three key variables determine the dollar value of inventory: (1) inventory quantity, (2) costs of inventory and (3) cost flow assumption. T or F