Question 1: During periods of inflation this cost flow assumption will generally mean less reported profits and less taxable income.
FIFO LIFO
Question 2: The cost flow assumption that results in the recent costs being reported on the balance sheet is
FIFO LIFO
Question 3: The cost flow assumption where costs are expensed in the reverse order of when the goods were purchased is
FIFO LIFO
Question 4: The inventory account will be credited with the cost of each product sold under which inventory system?
periodic perpetual
Question 5: If the periodic inventory at December 31, 2009 is overstated, the profit in the year 2010 will be overstated be understated not be affected
Question 6: If the costs of items held in inventory continues to decline, which cost flow assumption provides the greatest tax advantage?
FIFO LIFO Average
Question 7: You would not expect to find a general ledger account Cost of Goods Sold under this inventory system.
periodic perpetual
Question 8: Susie's Crafts has some of its items out on consignment at Smith's Pharmacy. The cost of these items should be reported as Inventory on the balance sheet of