Quiz 8.26 – T/F Unit LIFO vs Dollar-Value LIFO
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
Unit LIFO is more costly than dollar-value LIFO. True or false?
Unit LIFO is more costly than dollar-value LIFO. True or false?
Gross profit divided by average inventory is equal to the gross profit ratio. True or false?
The risk of LIFO liquidations is eliminated by using dollar-value LIFO, true or false?
Similar inventory valuation methods with financial statements prepared according to the IFRS can be used in preparing the company’s statements under U.S. GAAP. True or false?
True or false, during transit inventory shipped f.o.b. shipping point remains in the seller’s accounting records.
The cost of purchases is debited to _____ in the perpetual inventory system.
The cost of purchases is debited to _____ in the periodic inventory system.
Which of the following differentiates periodic and perpetual inventory systems?
This points out the largest expense in a retailer’s income statement.
What is the flaw when a decision illustrates that a physical count of inventory at the end of the year is not needed when a perpetual system is used?