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Inventory Issues: Intermediate Accounting

422. During periods of inflation this cost flow assumption will generally
mean less reported profits and less taxable income.

FIFO LIFO

423. The cost flow assumption that results in the recent costs being
reported on the balance sheet is

FIFO LIFO

424. The cost flow assumption where costs are expensed in the reverse
order of when the goods were purchased is

FIFO LIFO

425. The inventory account will be credited with the cost of each product
sold under which inventory system?

periodic perpetual

426. If the periodic inventory at December 31, 2009 is overstated, the
profit in the year 2010 will

be overstated be understated not be affected

427. If the costs of items held in inventory continues to decline, which cost
flow assumption provides the greatest tax advantage?

FIFO LIFO Average

428. You would not expect to find a general ledger account Cost of
Goods Sold under this inventory system.

periodic perpetual

429. 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

Solution Preview

DEAR STUDENT,

422. During periods of inflation this cost flow assumption will generally
mean less reported profits and less taxable income.

FIFO LIFO

ANS:LIFO

423. The cost flow assumption that results in the recent costs being
reported on the balance sheet is

FIFO LIFO
Ans: LIFO

424. The ...

Solution Summary

The inventory issues for intermediate accounting.

$2.19