1. The Income Statement is presented using the _____________ method of accounting rather than presenting actual _____________ flow. Why is this important to know?
2. The method of inventory costing generally results in the matching of current costs with current revenues and therefore produces higher-quality earnings. How does this effect the presentation of Cost of Goods Sold?
3. The gross profit margin and are complements of each other and the two percentages always add up to 100%. What method of data presentation do we use to show this breakdown and why is it important?