Quiz 9.12 – T/F LIFO Retail Method
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
The current period cost-to-retail percentage includes net markdowns and net markups if LIFO retail method is used. true or false?
The current period cost-to-retail percentage includes net markdowns and net markups if LIFO retail method is used. true or false?
In the Retail Method when computing cost-to-retail ratios, purchase returns and purchase discounts are ignored. True or false?
In the retail method, a cost-to-retail percentage approximates the average cost including markdowns and markups. True or false?
In the LIFO Retail Method, the cost-to-retail percentage includes markdowns and markups. True or false?
To use the retail inventory method, net sales cover sales returns but exclude sales discounts and employee discounts. True or false?
The retail amount used to calculate the cost-to-retail percentage is reduced by normal shortages. True or false?
The cost and retail amounts that calculate the cost-to-retail percentage are reduced by abnormal shortages. True or false?
What are the differences of U.S. GAAP and IFRS in the application of the lower of cost or net realizable value rule for valuing inventory?
How do material adjustments to inventory due to the application of the lower of cost or market (LCM) rule be reported in the financial statements?
Outline the steps in the gross profit method of estimating ending inventory and indicate when it is used.